Matt Drews oversees the day-to-day activities of his dedicated team of agents, whose expertise in all classes of commercial properties spans the Gulf Coast region from Manatee to Charlotte Counties. Drews, a Sarasota native and former professional baseball player, brings a wealth of diversified business, entrepreneurial, real estate and customer service experience to his new role with the company. Since returning to his Sarasota roots, Matt has held several key management, operational and business development positions. 100 S. Washington Blvd. • Sarasota, FL 34236 • 941.957.3730 • msccommercial.com T he tri-county area commercial market continued to post strong market fundamentals through 2017 for all property types. Looking back at the year and similar to 2016, the largest commercial sales in the market involved condominium and apartment projects. The growing live-work-play environment remained a draw for people from all over the region. One notable office 2017 sale was The Dilweg Companies purchase of Sarasota City Center (245,293 SF) for $36,500,000 in the downtown Sarasota submarket. The industrial market performed well throughout 2017. As we move into 2018, the continued expansion of the area driven by the steady population growth will see an influx of new hotels, retail stores and condominiums. Read on for more of the latest in the region’s commercial real estate market. State of the Market MATT DREWS DIRECTOR, COMMERCIAL DIVISION Manatee, Charlotte & Sarasota Counties COMMUNITIES REPRESENTED AS OF WINTER 2O17 COMMUNITY PRICE # OF RESIDENCES CONSTRUCTION INFO ASHTON OAKS From $597,000 20 (One Remaining!) Custom homes. Model open daily. EDGEWATER AT HIDDEN BAY From the high $500,000s 52 Model open daily. THE RITZ-CARLTON RESIDENCES, SARASOTA From the $2,400,000s 73 Pre-construction. Sales preview gallery open. THE MARK From the mid $700,000s 157 Under-construction. Sales gallery open daily. PALMA SOLA BAY CLUB From the $300,000s 207 Sales gallery open daily. SANDHILL LAKE From the $400,000s 43 Now taking reservations VUE SARASOTA BAY From $1,499,000 141 (One Remaining!) Under construction. By appointment. 4th Quarter 2017 MS&C Commercial works closely with clients to secure the right location and land for exceptional new developments. MS&C New Homes & Condominiums takes over from there, putting to work dynamic strategies that bring these exciting communities to the market. SIGNIFICANT TRANSACTIONS MS&C Commercial • Q4 2017 Date Location SQ FT or ACREAGE Property Type 10.5.17 1894 Stickney Point Road, Sarasota, FL 6,000 SF Retail 10.9.17 307-309 39th Street East, Palmetto, FL 7,776 SF Multi-Family 10.9.17 225 SR-434 West, Longwood, FL 17,456 SF Office 10.25.17 816 Manatee Avenue East, Bradenton, FL 8,437 SF Retail 10.30.17 2108 S. Tamiami Trail,Venice, FL 5,040 SF Retail 11.3.17 5105 Englewood Road,Venice, FL 1.85 +/- Acres Land 12.1.17 9580 Regency Square Blvd., Jacksonville, FL 15,082 Sf Retail 12.19.17 3165 Lakewood Ranch Blvd., Bradenton, FL 10,800 SF Industrial 12.21.17 444 Gulf of Mexico drive, Longboat Key, FL 8,246 Sf Office 12.27.17 2915 14th Street West, Bradenton, FL 16,525 SF Retail
Transcript
Matt Drews oversees the day-to-day activities of his dedicated team of agents, whose expertise in all classes of commercial properties spans the Gulf Coast region from Manatee to Charlotte Counties.
Drews, a Sarasota native and former professional baseball player, brings a wealth of diversified business, entrepreneurial, real estate and customer service experience to his new role with the company. Since returning to his Sarasota roots, Matt has held several key management, operational and business development positions.
100 S. Washington Blvd. • Sarasota, FL 34236 • 941.957.3730 • msccommercial.com
The tri-county area commercial market continued to post strong market fundamentals through 2017 for all property types. Looking back at the year and similar to 2016, the
largest commercial sales in the market involved condominium and apartment projects. The growing live-work-play environment remained a draw for people from all over the region. One notable office 2017 sale was The Dilweg Companies purchase of Sarasota City Center (245,293 SF) for $36,500,000 in the downtown Sarasota submarket. The industrial market performed well throughout 2017. As we move into 2018, the continued expansion of the area driven by the steady population growth will see an influx of new hotels, retail stores and condominiums. Read on for more of the latest in the region’s commercial real estate market.
State of the MarketMATT DREWSDIRECTOR,COMMERCIALDIVISION
Manatee, Charlotte & Sarasota Counties
COMMUNITIES REPRESENTED AS OF WINTER 2O17
COMMUNITY PRICE # OF RESIDENCES CONSTRUCTION INFO
ASHTON OAKS From $597,000 20 (One Remaining!) Custom homes. Model open daily.
EDGEWATER AT HIDDEN BAY From the high $500,000s 52 Model open daily.
THE RITZ-CARLTON RESIDENCES, SARASOTA From the $2,400,000s 73 Pre-construction. Sales preview gallery open.
THE MARK From the mid $700,000s 157 Under-construction. Sales gallery open daily.
PALMA SOLA BAY CLUB From the $300,000s 207 Sales gallery open daily.
SANDHILL LAKE From the $400,000s 43 Now taking reservations
VUE SARASOTA BAY From $1,499,000 141 (One Remaining!) Under construction. By appointment.
4th Quarter 2017
MS&C Commercial works closely with clients to secure the right location and land for exceptional new developments. MS&C New Homes & Condominiums takes over from there, putting to work dynamic strategies that bring these exciting communities to the market.
SIGNIFICANT TRANSACTIONS MS&C Commercial • Q4 2017Date Location SQ FT or ACREAGE Property Type
10.5.17 1894 Stickney Point Road, Sarasota, FL 6,000 SF Retail
10.9.17 307-309 39th Street East, Palmetto, FL 7,776 SF Multi-Family
10.9.17 225 SR-434 West, Longwood, FL 17,456 SF Office
10.25.17 816 Manatee Avenue East, Bradenton, FL 8,437 SF Retail
10.30.17 2108 S. Tamiami Trail, Venice, FL 5,040 SF Retail
11.3.17 5105 Englewood Road, Venice, FL 1.85 +/- Acres Land
12.1.17 9580 Regency Square Blvd., Jacksonville, FL 15,082 Sf Retail
12.19.17 3165 Lakewood Ranch Blvd., Bradenton, FL 10,800 SF Industrial
12.21.17 444 Gulf of Mexico drive, Longboat Key, FL 8,246 Sf Office
12.27.17 2915 14th Street West, Bradenton, FL 16,525 SF Retail
COMMERCIAL TRENDS & REPORTS
CURRENT DEVELOPMENT
In Lakewood Ranch, the story is all about the new grocery stores:
n Earth Fare at the Green, at SR 70 and Lakewood Ranch Boulevard is set to open first on January 27th
n Whole Foods at Honore Avenue and University will open 4 days later on January 31st
n The University Corner Shopping Center will host a Publix that is set for opening in the last half of 2018. A Pet Supermarket will also be part of this development.
n Another Publix will be located at Lorraine and SR 70. The exact time frame is to be determined. As residential development continues to thrive, it should be open for business in the next 3 to 5 years.
n Lucky’s Market is set to join the Lakewood Ranch scene to be located at the northern side of the intersection at Lakewood Ranch Boulevard and SR 64. Lucky’s will join a Wawa just as Whole Foods has done in its second Sarasota/ Manatee location.
We are seeing a number of Corporate Headquarters being constructed in Lakewood Ranch. Newly opened:
n Centauri Insurance
n RE Crawford
MEDICAL DEVELOPMENTn Tidewell Hospice Expansion
n Intercostal Medical Group second building
n Mercedes Medical’s 60,000+/– SF Medical building
n Mercedes Medical is the first medical related business to break ground in Lakewood Ranch’s CORE project. CORE is the Collaboration Opportunities for Research and Exploration, which has a mission of being a “world-class research environment for collaboration and innovation.” This building will house the current Medical supply business in one location. It will bring together 3 different facilities in one and is expected to be open in November of 2018.
FUTURE DEVELOPMENT
Waterside Place: Lakewood Ranch’s 5,000 plus home Sarasota County Development will host 120,000+/– SF of office and retail space for lease. Construction should begin end of 2018 with delivery early 2020. 4-6 stand-alone restaurant pads will be part of the development.
Susan Goldstein: Lakewood Ranch
SALE-LEASEBACK: IS IT RIGHT FOR YOU?For many owners of medical office buildings, increases in operating costs can make cash difficult to come by. Or, if they are looking to expand their practice and in need of an infusion of capital, a sale-leaseback may be the answer.
A major benefit to a sale-leaseback is the term. With traditional lending, terms are ten years or less. With a sale-leaseback, you can have initial terms of 20+ years with multi-year extensions. With debt financing, the loan-to-value ratio is typically 70%-80%. In a sale-leaseback, the entire amount of the value of the property is monetized and the seller recovers 100% of its expenses for acquisition and development. A sale-leaseback also allows the lessee to lock in operating costs for 20+ years while still retaining nearly full control over the property and providing greater rights to make alterations to the property, operation of business and change in use and occupancy all of which is heavily regulated with conventional mortgage lenders.
There is a robust market of investors looking for a safe place to invest money. Properties with long-term triple net leases, property location, and strong financials make medical office sale-leasebacks quite attractive to investors.
Gail Bowden: Medical Office
Vacant Land is everywhere — it’s just getting tougher to find. And, if you do find a property to develop the prices keep rising.
That being said, according to the Herald Tribune Lakewood Ranch sold 334 acres of vacant land in the master planned community last month to Toll Brothers for $17.7 million; and 95 acres to Homes by Towne for $5.19 according
to county deed filings.Toll Brothers plan to build up to 450 single family homes in a
community called The Isles at Lakewood Ranch. The property is located north of University between The Lake Club and the Concession communities.
Homes by Towne plans to build a luxury community called Woodleaf Hammock — which can feature up to 91 single family homes and 162 townhomes according to county records.
These transactions took place in December 2017.M/I Homes of Sarasota closed on a 67-acre property for $7,900,000
east of I-75 and south of Clark Road. The plan is to build 107 single family homes on lots from 10,000 square feet and up. The project is called Rivo Lakes — a conservation subdivision under Sarasota’s 2050 plan, with walking trails within.
Howard Sadwin: Land Update
COMMERCIAL TRENDS & REPORTS
Ben Bakker: Manatee Countyn Springhill Suites hotel project is under
way, they are currently at the 6th floor for construction.
n The former Bradenton Herald site recently went under contract and will bring a 300-unit market rate apartment complex to downtown Bradenton.
n Zaxby’s on State Road 70 recently had its grand opening in December. Ben Bakker, of MSC Commercial represented the buyer, Zaxby’s, to bring their first location to Manatee county.
n The South Florida Museum broke ground on their $14.5 million expansion.
n Plans are due later this month for the Downtown Bradenton parking garage. The new garage will also feature new retail space on the first floor.
n Grand Palms: Active Senior Living Tax Credit project is nearly complete and ready for occupancy.
n Connect Bradenton: A 9,000 sq. ft. Co-work, conference and short term small office concept has launched in the center of Downtown Bradenton in the former Bank of America retail space on the corner of Main Street and Manatee Ave.
Lee DeLieto Jr.: Downtown PerspectiveTo quote Jim Carrey’s
character in his movie, The Mask; Downtown Sarasota is “Smokin”!
Let’s do a rundown of activity. Starting with the least active sector of growth, pure Office
construction in the core has been limited to one single building. Called the Centerplex Building, it is easily identified as the wood-like trimmed triangular structure at the intersection where Golf St, S Links Ave and Ringling Blvd come to a point. With anticipated delivery around the time of this publication, it will headquarter Sabal Palm Bank, relocating from east Fruitville Rd.
As to Office occupancy, leasing has slipped slightly but inventory is tight. As recognized by a market survey within our brokerage community, Office vacancy of Class A, B, and C Office buildings was 8.8% this time last year. But has now ticked up to 13.2% mainly due to the consolidation of larger office users.
The Retail sector has been hot since we came out of the Great Recession. Main Street is doing its best to pull foot traffic away from the season highs of St Armand’s Key. Market rents downtown are floating from the mid $20 per SF (NNN) upwards to $30 or $40 per SF.
And to meet the demand, projects like the State Street Garage, 1500 State Street,
and the DeSota have grabbed the attention of tenants and consumers alike. Jumping over Fruitville Rd to the Rosemary District, the much-anticipated opening of Rosemary Square br ings mixed-use shopping convenience to that neighborhood.
Without question, the strongest rate of
activity has been in three sectors: Hotel, Condo, and Apartment. All of which fall within the residential realm.
In a recent Stats column written by Susan Burns of Sarasota Magazine, she writes hotels take in 37% of visitors to our great city. And with an astonishing 91 hotels or motels in the Sarasota area, we have 5 more coming on-board in the downtown area.
The latest sensation is the Westin Sarasota. This 255-room hotel is the latest to greet the Sarasota skyline. It boasts an 18-story roof top bar with daily spectacle views of the sunset over Sarasota Bay.
With an anticipated opening in March, the next hotel to attract guests is the Art Ovation Hotel. As a Marriott f lagged, Autograph Collection Hotel, this 164-room
hotel will surely be the shining star in the arts and entertainment section of Palm Ave.
And to recap my updates from Q3, the Apartment sector is burning through its availability. Coming up on two years, the 138-unit One Palm Apartments is at 98% leased and continues to have a waiting list since opening in February 2016. The second major Apartment building to reach this lofty goal is CitySide Apartments in the Rosemary District. Since my last update, they have leased up the remaining 10% of their 228 units and are contemplating development of their Phase II.
Rounding out the hot Apartment market, the DeSota has leased up 58.33% of their 180 units with a 20% increase over last quarter. The Elan Rosemary is anticipating delivery of its 286 units in March with 9.1% pre-lease. Arcos will be delivering around the month of May and has pre-leased approximately 1% of its 228 units. And finally, the BOLD Lofts is shooting for a March pre-lease and July delivery of its 97 units.
Rendering of the Centerplex Building in Sarasota
The Elan Rosemary
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