Category Archives: Nettamorfasis

Random stories, articles and musings on many things

Florida will need 669,000 more apartments by 2030, according to a new study. 

Read the full article:
https://goo.gl/1scHrj

Demographic Shift, Investor Demand Reshaping Broward’s Apartment Market which shows similarities to Pinellas & Sarasota counties.


Pic credit – Jason Ludwig

PUBLISHED: JUL 17, 2017

Broward County multifamily housing and retail is undergoing a remarkable transformation as millennials and empty nesters are embracing urban living and young professionals seek similar experiences in suburban settings.

Having been built out for some time, much of the development in Broward has shifted from gated communities in western suburbs to multifamily housing in the urban core. About 4,000 condominium and apartment units in 20 blocks of Fort Lauderdale are set to come online in the next few years. 

Most of the new properties will resemble The Manor at Flagler Village, a mixed-use complex with residential units between 700 and 1,350 square feet. Rents range from $1,826 to$2,921 per month, about 30 percent higher than other nearby Class A buildings. The retail component, which is managed by Franklin Street, occupies the first floor and includes popular restaurants such as The Brass Tap, a craft brewery and Mellow Mushroom. Other service-based retailers range from a dentist office and fitness center to nail and hair salons. Nearby is a Fresh Market grocery store, a museum and parks. These amenities appeal to millennials. 

Young adults are looking for the best apartment spaces available regardless of unit size. Millennials care more about the fact that there’s a restaurant that they like in the lobby and Wi-Fi access throughout the entire building.

Their interests are altering the retail environment. Traditional retail is being replaced with service-oriented businesses where people can eat, have a drink, get their nails done or meet with a financial advisor.

Baby boomers want similar amenities. Many retirees are selling their four-bedroom houses in the suburbs and moving into an apartment where they don’t have to worry about things like lawn care. They can travel for pleasure or to visit grandchildren and want the freedom that comes from not owning a home. 

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As part of the population move to the downtown core, more people are doing something unusual in South Florida: they are giving up their cars. With easy access to ride-sharing programs, consumers are taking the money budgeted for a vehicle and putting it toward rent instead. 

Broward municipalities such as Coral Springs and Plantation are following suit. An urban core is emerging in Coral Springs centered around a new downtown city hall that is under construction and over 300 apartments have been built. One is Bainbridge at Coral Springs, a five-story development with top-of-the-line amenities and rents $300-$700 a month less than in downtown Fort Lauderdale.

Properties like that attract young professionals. Millennials that have small children prefer neighborhoods with A-rated schools. While some couples have started families, they are still active and want to go out and socialize with their friends in places like those in downtown Fort Lauderdale.

They’re attracted to places such as Plantation Walk, which will go up on the site of the former Plantation Fashion Mall. Plans call for 700 rental apartments, 200,000 square feet of retail and a Class-A office tower. It appeals to young people who don’t want to travel 25-plus minutes to downtown Fort Lauderdale for work or fun. They would prefer a short walk or ride to their office and to have restaurants, bars and shopping close to home.

Multifamily investors have noticed the trend and started to grow their portfolios. Demand has so outstripped supply that an investor that would normally purchase a Class A or Class B property in an established area is going out of their comfort zone and buying a Class C property in an emerging neighborhood.

In Broward County, much of the buyer interest is coming from out-of-area investors working with local conduits. When Franklin Street recently marketed 167 units in downtown Plantation, we garnered about 17 written offers in two weeks, half of them from investors in New York, Philadelphia, New Jersey and Canada.

Outsiders are active in Florida for two reasons: The first is cap rate compression. Investors are seeing deals at 1 to 2 percent, and at zero percent in some cases in New York. Florida cap rates are also being squeezed, but they are still at 5-6 percent.
Second, Florida offers significant tax benefits. Out-of-state investors can re-capitalize their portfolios, sell their properties at a premium, come down here, and trump everybody at the local market level.

Today’s investors are not looking for immediate cash. Many are buying properties in neighborhoods that they think are up and coming. These buyers expect that their apartments or mixed-use buildings will be smack in the middle of a redevelopment play five to 10 years down the line. Given current trends, they are likely to be right.

 

Credit:

HERNANDO PEREZ AND DAN DRATCH

Source:

Southeast Real Estate Business

URL:

http://rebusinessonline.com/

Why even look at a Cap Rate?

 

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“What is the cap rate?” 

This is a question I receive a lot of the time and its a loaded question with a complex answer.

There are lots of variables that go into formulating a cap rate.  It isn’t as easy as what is the income minus the expenses contrasted against the asking price or value.

When looking at cap rates, other items go into the valuation such as;

Location

Condition

Age of property

Updates/Deferred Maintenance

Subjective Numbers included or excluded (i.e. – self managed)

Potential traps or pitfalls (i.e. – a forthcoming RE Tax increase based on a $$$ sales price)

 

Let’s dig down a little and throw out some examples of how these items can affect cap rates.

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Location – This is reasonably obvious in that, if the property is on a beach or some highly desired location, then the demand will compress the cap rate.  On the flip side, if the property is in a blighted area or less desirable location, then investors may be looking for a more enticing cap rate.

 

Condition – This also seems like a simple variable but often times, pictures can be misleading or concerns can be concealed and this will certainly affect cap rates.  If an investor is purchasing a 10,000 SF office building that is fully occupied but during due diligence it is found to be structurally unsound and the building requires substantial rehab work to solidify the structure, this will negatively affect the cap rate.

 

Age of Property – Accordingly, if the property is newer, then the potential for deferred maintenance, repairs, system failures, etc is lessened and vice versa on buildings with decades under their belt, the possibility for repairs, replacements, rehabbing, etc go up while the cap rate will fluctuate similarly.

 

Updates/Deferred Maintenance – This wont have such a profound impact on the cap rate in most cases, but if the amount of items needing updates adds up, then it may become problematic.  (I.e. – painting, parking lots, roofing, HVAC, Water heaters, etc)

 

 

 

Businessman Touching a Chart Indicating Growth

Businessman Touching a Graph Indicating Growth

Subjective Numbers included or excluded (i.e. – self managed) – This is my favorite category by far.  I’ve seen so many marketing packages from other companies and sellers that exclude items such as management, repairs, vacancy, insurance, etc.  Most of the time, its selective memory or a slanted perspective, such as ‘The owner self-manages’ so there is no management included in expenses.  You will also find the ‘market average’ for repairs which tends to run much lower then reality, but is usually accepted as reasonable.

Finally, the vacancy is a interesting metric as I’ve encountered numbers ranging from zero to five percent.  (Use this math as an example – 10 unit building X 12 rentable months = 120 months of rent — Approx each month of vacancy = .09% so if you were full 119 out of 120 months then you had 99.1% occupancy.  Most likely the property had turnover and no matter how nice the property is or how earnest the tenants are, people move, they get new jobs, help family, explore, etc.  Let’s say you had 4 move outs over the course of a year and 2 units only lost 1 month of rent, 1 unit lost 2 months of rent and the last unit required some substantial upgrades/remodeling and was offline for 2 months as well.  That’s only 6 months out of 120.  Not a big deal?  It’s 5% vacancy.

 

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Potential traps or pitfalls(Pie in the Sky Theory)  This is where a great agent comes into play or a seasoned investor can capitalize on an acquisition.

RE Taxes reset based on point of sale pricing.

Insurance costs tend to rise when a new policy is required

Reserve funds that were in place before sale, disappear and money must be allotted/escrowed for those items

It costs money to improve units/property to utilize the upside potential that folks are selling.  Keep that in mind when looking at marketing.

SOLD – 54-unit apartment complex in Sarasota, FL

We are pleased to announce the closing of a 54-unit multifamily property located at 3400 Tyne Lane in Sarasota, FL. 

The sale had multiple offers from both local and out-of-town investors. The final price approached $95,000/unit. 

The sale is a testament to the continued strength of the Sarasota/Bradenton apartment market in spite of new construction in the area.

If you are considering buying or selling, don’t hestitate to contact us to discuss your options.

Sean Dreznin — Srqcre@gmail.com

George Kruse — gwkruse@gmail.com

Made on the Gulf Coast

Nothing gets made here anymore? Think again. Tons of products get produced every day in Florida. We scour the coast for the hottest items created here.

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Raise your glass—or rather your tumbler—and toast the hippest drinking utensil ever. Yes, Tervis produces this cup of champions from a factory in Osprey, and there are no plans to stop. “We can’t lose touch of where we came from,” says Rogan Donelly, who took over as president of Tervis in May. Donelly’s grandfather John Winslow first purchased Tervis in the 1950s, when the company still made cups in a factory in Detroit.

Winslow moved the company closer to his Casey Key home in the 1960s and the company remains privately held and family owned. The original factory has turned into a retail store selling Tervis products, the largest of the now 46 Tervis stores nationwide. The company today employs more than 1,000 people total, roughly 850 in the corporate headquarters and factory just off Interstate 75. Gulf Coast residents may have an affinity for Tervis from passing by those rainbow-colored letters near the highway or glimpsing the building entrance that conspicuously resembles the famous ridges lining the inside of every tumbler produced there. Donelly believes the national affinity for the brand, though, has more to do with what’s lodged between the pieces of plastic comprising every glass. Tervis works as a superior tumbler because of insulation that keeps warm drinks hot and cold drinks cool, but Tervis thought to put stitched emblems and logos that glue to the inner layer’s wall and wedge against the outer layer of clear plastic. This is where many a college mascot and cartoon flamingo live out their days.

In recent years, Tervis has seen growth in the wrap market, with consumers opting for printed logos and designs that go all around a glass, and the company today enjoys valuable partnerships with such major brands as Disney, Coca-Cola and the NBA, MLB and NFL. At the 2013 NBA Draft, Tervis brought a portable unit to the event and made custom tumblers for draftees with their name and jersey number embedded in the tumbler next to the logo of their new team as quickly as the athlete could don a fresh sports cap and take the stage. With customization now available to anyone with an Internet connection, Donelly says more people can emblazon the most important times in their lives, from wedding dates to theme park photos, into the glasses. “You are now able to save that memory and frame it between two pieces of plastic,” Donelly says, “and now you have a cup on your desk that reminds you of that moment with your family.”

 

Hoveround

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The reputation for elderly people on scooters evokes images of decrepit seniors unable to move about with any vigor, but when Sarasota inventor Tom Cruse first created the Hoveround, he wanted to bring activity back into his customers’ lives. “Let’s build a power wheelchair that can go anywhere someone can walk,” he recalls of his initial motivation. The innovator sat down with truck drivers in semis to see how they kept their own seats positioned so as to remain alert instead of sleepy behind the wheel. He tested his device in elevators, where Cruse came up with the patented rounded corners that allow the Hoveround to spin like a top without sweeping the feet out from under any innocent bystanders—special attention was devoted to making a scooter that can corner.

The first Hoveround hit the market 25 years ago and the Sarasota company has since sold more than 200,000 chairs. Officials pride themselves on keeping people independent even when they can no longer walk great distances without assistance. “It’s always been about making sure people have their freedom,” says Brenda Gaulin, Hoveround director of marketing. By making the scooter compact and easy to board, it allows those who might get winded walking at the grocery store to still continue taking care of themselves without constant attention.

Part of the aging-in-place movement, Hoveround lets people function years longer. Gaulin firmly believes Hoverounds rolling around today carry people who might otherwise have retired into nursing homes or assisted living facilities. “A lot of folks in our chairs can’t walk at all, so they either would be relying on somebody else like a spouse to do everything, or they would have to be restricted in their beds,” she says. The products created at Hoveround see constant evolution and improvement, but Gaulin says the same basic design used on the first scooter remains in use today. The products still get assembled entirely in the Sarasota area, where the company employs about 300 people beyond the 100 or so salespeople selling scooters nationwide.

 

PGT

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The high-rises forming Sarasota’s skyline glisten as the sun rises and glow as it sets each day. For Jeff Jackson, president of PGT Industries, he sees the light bounce from the buildings and knows he helped bring that shimmer. “We are in half of those buildings downtown,” he boasts.

From the glass shining at One Palm to the windows being installed at Allure or Embassy Suites, the sparkle siding on the skyscrapers may be the most visible monument to PGT’s contributions downtown, but the bulk of business done by the Venice company actually gets framed in the windows of single-family homes around Florida and throughout the Southeast United States. The business employs about 2,700 people today, most on the Gulf Coast. With some 70,000 new home starts expected in Florida this year, that’s plenty of glass that needs to be pressed and polished here. Jackson ends up splitting time these days between the PGT facilities here and custom window and door businesses acquired in recent years in Orlando and Miami. It’s been a great time for the company, and a major change from the late 2000s, when it had to consolidate the North Carolina facilities back to Florida amid the Great Recession.

The future looks bright, though. Jackson notes that based on the number of people moving in to Florida, there should be enough business to provide well over 100,000 housing starts. Jackson took over as president two years ago, and founder Rod Hershberger remains chairman of the board. Hershberger has been active in numerous business organizations including the Economic Development Corporation of Sarasota County, and recently he was named co-chair for the 2017 World Rowing Championships. Jackson says the company’s strong roots here derive from a solid business environment in Sarasota County and an affordable quality of life that might be unattainable for workers in Tampa Bay or Miami.

 

PPi Technologies Group

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Could a juice pack maker in Sarasota have the key to stopping the Zika virus? The minds at PPi Technologies Group believe so. At Penta5 USA, a PPi subsidiary, scientists have been packaging a serum that attracts mosquitoes and could potentially wean the tiny vampires off of human blood. “The majority of the mosquito population never feasts on blood anyway, just the females,” explains Sandra Murray, vice president of marketing for PPi. “Most are very happy to eat and drink nectar.” If tiny bug baths can be set up in South Florida and anywhere else affected by the insect-borne illness, Murray believes humans will be safeguarded against the disease without having to kill a single bug. “We don’t kill the mosquito; they belong in the food chain,” she says. “We really are a green company.”

This particular product proved novel enough to win Ringling College of Art and Design’s Innovation By Creative Design Award. But the company has been squirting success through straws since 1996, when Stuart Murray first founded Profile Packaging Inc. The company started out developing packaging machinery, and today also produces packages or helps customize machines for businesses that want to produce their own pouches. Of the 1,600 or so various pouches on US store shelves today, PPi had a hand in making about 1,300, Murray says. PPi produces such products as PouchPak, a stand-up pouch employed by major brands like Nesquik and Quaker Oaks.

The business works with such ubiquitous brands as Kraft Foods and General Mills. Almost any dry or wet substance can be sold and stored in pouches from PPi, and sub-companies within the PPi empire today include Redi2Drinq, which focuses on selling wine or liquors in soft packs (better than the lunches mom packed for sure) and PouchPac Innovations, which licenses its technologies for a variety of zipper packs and spouted pouches. And Murray says the company devotes itself to making packaging with minimal environmental impact. “We are a wellness company that gives back to the people and the environment,” she says.

 

Baby Quasar

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It may surprise many a Sarasota beachgoer, but light can heal the skin as well as burn it. Sarasota businessman Peter Nesbitt has dabbled in blue light therapy since around 2001, and today runs Baby Quasar, a Sarasota company creating high-tech products scaled so that consumers can use them at home instead of going to medical offices and spas. In 2008, he moved from Philadelphia to Sarasota and decided to re-locate all of the production for Baby Quasar to Tallevast Road. The wands made by the company are typically a little larger than an adult hand and can be used to combat acne or wrinkles.

The tech works by killing bacteria in skin tracks, which in turn allows more oxygen into the pores. Nesbitt notes light therapy was used in Eastern Europe as far back as the 1950s but only attracted interest in the West more recently. “Initially, it was brought here by NASA, which had studies done at the University of Wisconsin to try and find ways for people to heal better in space,” Nesbitt says. The product soon found popularity in spas. Living in a place where so many aging people continue living active lifestyles, Nesbitt saw promise in marketing the therapy to individuals in their own homes.

Today, Baby Quasar employs only about 10 people but has been sold through such national retailers as Dermstore and Neiman Marcus. And Nesbitt isn’t just the president and CEO of the company. He also uses the light wands himself. “I use the product to fight hair loss. I’m diabetic and use it for circulation,” Nesbitt says. “I’ve been using this technology ever since I first discovered it.”

 

Air Products

This is not your typical heat sink. At the Air Products facility across the road from Port Manatee, workers can be found on any given day building the biggest liquefied natural gas heat exchangers anywhere. “I am proud to say that no one in the world builds coil-wound heat exchangers as large as we do,” says Sandy McLauchlin, general manager of LNG and cryomachinery engineering and products at Air Products’ Palmetto facilities.

Air Products opened its 300,000-square-foot Manatee County facility in 2014 and rolled its first heat exchanger from the plant to the port in September. The devices weigh as much as 500 tons and span two-thirds of a football field. The first one made here weighed in at 700,000 pounds, roughly the same as 233 Volkswagen Beetles. And while the market may not be large for such devices, Air Products has it cornered. The company has only ever sold 116 LNG heat exchangers, most produced over the past 45 years at the company’s factory in Pennsylvania.

Those mammoth products have found their way into plants in 15 countries around the globe. When the company purchased a 32-acre site here, it marked an expansion to a whole new market, and the exchanger that rolled off the line in September went to a Gulf Coast buyer for the first time. “When we selected this site, we believed it provided us with everything we needed in an operational location,” McLauchlin says. “I can tell you we made a wise choice. This new facility will help us maintain our market leadership position.”

 

Watt-Ahh

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Forget your Dasani. Sarasota-based WIT International has built a better beverage with the release of Watt-Ahh, polarized water finding wide use in the consumer and therapeutic marketplace. The clear juice born of the Gulf Coast has been employed in everything from growing healthier medical marijuana to giving a purer jolt to energy drinks to providing a base ingredient for wound-care compounds.

Licensed as a product for AquaNew, the liquid was created by Sarasota mogul Rob Gourley, CEO for WIT. Officials bottle the ionized water after running it through a purification process six times. “It helps to keep people energized and performing at their optimum level without being flustered,” says Dana Gourley, WIT’s chief operating officer. It does so through stabilizing the chlorides and peroxides in the H2O. In operation in Lakewood Ranch for nine years, WIT has already sold about 350,000 bottles of Watt-Ahh, enough to give a drink to everyone in Sarasota County. But the company also sells it as a raw product for use in deodorants and medical products. “We are just working with a number of great companies to bring this great technology forward with their products,” Dana says.

 

221BC Kombucha

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When Aneta Lundquist started making kombucha in her home, it was part of an effort to make sure her own children ate healthy, but pretty soon, it also proved a nice dish to share with neighbors. So she started making it by the keg and invited friends to partake. Her husband, Eric Lundquist, recalls the massive response from homeowners on Siesta Key. “People would bring mason jars to the tap in our garage,” he says. “Everyone said this was better than anything they could find in the store. We decided we may as well take this thing to market.” And so the Lundquists in late 2014 incorporated a business and started shopping 221BC Kombucha to local stores and restaurants.

While some retailers initially showed skepticism about another local food product, the fermented beverage soon found a loyal customer base. Jump ahead two and a half years and more than 500,000 bottles of kombucha sold; the company is on track to sell more than 1 million bottles this year. The secret to the product’s success? Every kombucha recipe is different: Aneta’s mixes use various quantities of hibiscus, turmeric, cayenne and any other number of spices not normally imagined for a beverage recipe.

The distinct taste has proven a hit with organic food vendors as far as Louisiana and North Carolina. It’s not bad for a product made primarily because Aneta, who grew up in Poland making food grown at home, didn’t want her own children raised on American junk food. The vegan entrepreneur now sees it as a life goal to make everyone’s drink choices a little more healthy. “Through brewing kombucha, I’ve realized that my mission on this beautiful Earth is to set in motion a health revolution and offer everyone a nourishing alternative to highly processed sodas and energy drinks,” Aneta says.

 

Sun Hydraulics

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Why would one of the country’s big names in high-tech continue to keep its corporate headquarters in Sarasota for more than 45 years? Officials keep a hand-written note from company founder Bob Koski on hand for whenever the question gets asked. When he argued to partner John Allen that this was the place to start a company, he laid out the logistical advantages of being near air and sea ports and the availability of raw manufacturing materials, but his fondness for the Gulf Coast shines through most strongly in the last item on his list: “Sarasota has the class of persons this industry is designed to attract as employees.”

Today, Sun remains a strong name in engineering, creating industrial cartridges and manifolds all around the world. The publicly traded company today manufacturers goods in seven countries, but has always kept its headquarter facilities in Sarasota, running strong and producing goods with about 620 employees working in Sun’s Sarasota plant. Plants in Asia make some larger products that Sun can’t build in Sarasota, like industrial manifolds, but the cartridges and coils that established the company’s credibility in the world of hydraulics still get created in a facility on University Parkway. With an open environment plan that has no offices and few job titles, the almost anti-corporate corporate culture at Sun has been studied by Harvard, where academics suggest greater innovation results directly from the fact that ideas from linemen have equal footing as those coming from degree-holding engineers.

The world’s first Bluetooth-controllable amplifiers developed this way, and the company imagines the future only holds more groundbreaking achievements. Steve Berlin, who handles marketing and public relations at Sun, says this culture has been in place since Koski ran the company, and it instills a sense of pride in the work by every employee. “Bob instilled in employees a pride in workmanship and a drive to always do the right thing,” he says. “That has driven the Sun reputation for quality, reliability, customer service and the industry’s best delivery times across its entire catalog of products.”

 

Intertape Polymer Group

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There’s nothing intrinsically exciting about the world of packing tape, officials readily admit. “We’re not saving lives here,” says James Apap Bologna, vice president of marketing for Intertape Polymer Group. “We are delivering things that may save lives when they come out of the box.” But while you may not be familiar with the IPG brand, if you got a Whirlpool appliance installed in your home this Christmas, you probably peeled through an Intertape Polymer Group product before having it hooked up.

IPG, one of the most important makers of tape products in the United States, had kept its US headquarters on the Gulf Coast for 15 years. It runs factories around the globe, including one in Tampa Bay, and is growing its workforce all the time, Bologna says. And today, the company remains either the No. 1 or No. 2 manufacturer of acrylic, natural rubber, hot melt and water-activated tapes in the nation, as well as a lead producer of geo-membrane and industrial woven fabrics. The company has a stake in American manufacturing, which ticked up significantly in 2014 and seems bound to continue. Bologna says as more products get made in the United States, IPG continues to provide box adhesive.

The company follows trends in packaging like record executives follow taste in music. Rather than focusing on retail brands like Scotch, IPG works directly with manufacturers selling spools with thousands of feet of tape to be used in boxing machinery. The IPG website promoted high-end hand-held tape-cutting devices to use on the factory floor. And no, none of that is sexy, but Bologna’s working on that too, and relying on Gulf Coast talent to do so. The company this summer turned to Ringling College of Art and Design students in an effort to expand the company’s creative horizons by commissioning two- and three-dimensional artworks made entirely out of tape. Ringling President Dr. Larry Thompson says the opportunity exposed many students to a local company few realized worked on the Gulf Coast, and Bologna says the effort went over so well the company and college will engage with each other again this semester.

For complete article and others like it, CLICK HERE <———————

Sarasota Ponders Future of Rosemary District near Downtown

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BY JACOB OGLES SRQ DAILY FRESHLY SQUEEZED CONTENT EVERY MORNING THURSDAY JUN 8, 2017

A special district designed to spur development in the Rosemary District has been so successful Sarasota officials expect to reach a goal on new residential units more than a year earlier than expected. Now, city commissioners have started to explore whether to allow construction at up to three times the normal density to occur on more properties in the area.

“The Rosemary District has the potential and, I firmly believe, could be the most exciting, diverse, inclusive neighborhood in Sarasota, and perhaps the state of Florida,” says Howard Davis, director of the Rosemary District Planning Initiative. Davis and other leaders in the Rosemary spoke to city commissioners Monday night about a hope to continue the redevelopment renaissance happening north of Fruitville Road.

But while city commissioners say the success of an overlay district in spurring development certainly proved successful, they also want to explore whether needs like the opening of parks and creation of affordable housing will be met in the future. “The idea was to increase density by allowing smaller units and units that were more affordable—not attainable levels that we have been talking about, just affordable,” said Commissioner Jennifer Ahearn-Koch. “In my mind that has not happened.”

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The city in 2014 approved an overlay district where some developments could build up to 75 residential units per acre, while the normal zoning allows just 25 units per acre. That resulted in construction of rental housing like that found at CitySide Apartments. Officials elected then not to include requirements for affordable housing, in hopes market forces would keep prices of smaller units low.

The district ended up working faster than anticipated. While there were 386 units in the district when the overlay got approved, the city now calculates that 1,525 units have been built or have building permits or site plan approvals issued. The original plan for the district capped the entire area at 1,775 units, and set an expiration date for the district in December 2018. With nearly 86 percent capacity achieved already, commissioners on Monday voted to have the district terminate whenever the cap is reached. 

Bruce Weiner, developer for CitySide, says he would like to see development continue in the Rosemary. Site plan approval for the apartment complex’s second phase triggered the city looking at the district’s future. While Weiner notes he owns no more property and might benefit from being one of the only developments in the neighborhood with so high a density, he says continued development will benefit everyone in the area. “It’s really turning into a viable downtown neighborhood,” he says.

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City Commissioner Hagen Brody says he would like to see activity continue in the district. “I love what’s happening in Rosemary,” he says. But other commissioners say they want to make sure other needs get met.

Mayor Shelli Freeland Eddie says she’d like to see an affordable housing requirement implemented. The Sarasota Housing Authority owns three acres in the district, and officials there would like the ability to develop at higher densities. Eddie wants that need considered. Ahearn-Koch says the city needs to consider roadways, greenspace and a number of other issues now as the district matures.

CLICK HERE <—– for full article and others

This City Is Like the Disney for Retirees

 

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Picture looking West out towards the Gulf of Mexico and Sarasota Bay.

By Jennifer LeClaire
Published: June 27, 2017

Beyond being known for its beaches, Sarasota is a community rich with live theater, concerts, ballet, opera, galleries and museums. According to a study that examined 182 regions in the country, Sarasota’s arts and cultural industry accounts for more than $180 million in spending, which is more than the entire state of Nebraska. As such, the arts industry has a huge impact on the area’s economy.

GlobeSt.com caught up with Jag Grewal, partner at Ian Black Real Estate in Sarasota, to discuss recent activity among the region’s top arts organizations, and what it means for its commercial real estate market in part one of this exclusive interview. Stay tuned for part two, in which Grewal will discuss the impact of expansion on the area’s commercial real estate.

GlobeSt.com: I understand Sarasota has a reputation as an arts community. Can you tell me a little about the strength of this sector in the market?

Grewal: Sarasota is a mecca for arts organizations. In fact, on the Tampa Bay Business Journal’s annual list of top cultural nonprofits based on 2015 revenues, five of the top fifteen were organizations in Sarasota. When compared with other Florida counties in the study, Sarasota County generates the highest amount of cultural spending per capita.

This spending supports 4,579 full-time equivalent jobs—the national median is 1,533—generates $134.4 million in household income to local residents, and delivers $20.1 million in local and state government revenue. This is big business in our area, and activity we’re seeing from the arts organizations that are expanding are helping to shape the commercial real estate market and the future of our city.

GlobeSt.com: Which organizations are you seeing have the biggest influence right now?

Grewal: Several prominent organizations are expanding. Our firm recently represented The Asolo Reparatory Theatre in purchasing a 5,000-square-foot building on just under half an acre next to its existing location to expand its footprint. And we’re representing The Players Centre for Performing Arts, which has its long-time property on the market and is working on raising money to build a new $30-million theater complex in Lakewood Ranch.

We also worked with Florida Studio Theatre on its recent all-cash purchase of a 2,200-square-foot building in the downtown area, which is a testament to the strength of the downtown commercial real estate market. These are just a few examples of the flurry of activity we’re seeing among these organizations.

 

PART 2 —————————————————————————-

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It’s not the big city—but it’s a cultural city. And it’s attracting investors in droves.
According to a study that examined 182 regions in the country, Sarasota’s arts and cultural industry accounts for more than $180 million in spending, which is more than the entire state of Nebraska. As such, the arts industry has a huge impact on the area’s economy.

GlobeSt.com caught up with Jag Grewal, partner at Ian Black Real Estate in Sarasota, to discuss how this is impacting the commercial real estate market in part two of this exclusive interview.

You can still read part one: The Arts’ Impact on Sarasota Real Estate.
Globest.com: What kind of impact are art organization expansions having on commercial real estate in the area?
Grewal: These arts organizations touch many aspects of Sarasota’s economy. They have a lot of purchasing power and the ability to invest.
We’re seeing this influence activity among restaurants that want locations near these performing arts centers, because they attract large numbers of people. In addition, a vibrant, thriving downtown will ultimately help attract more businesses to the area.
These expansions are also impacting the housing market, as larger theater productions require bigger casts and crews. For example, the Sarasota Opera House recently purchased 38 apartment units in the Rosemary District to house performers. Also, the Florida Studio Theatre is expanding its planned housing with the development of
the Kretzmer Artist Housing Project, which will house up to 20 visiting artists, interns and apprentices throughout the theater’s season.
GlobeSt.com: What kind of long-term outcomes do you expect to see, as a result of the activity that’s happening now?
Grewal: Sarasota is going to be like Disney for retirees. People will be able to see a different show every day of the week, and have plenty of restaurants and other entertainment venues in a walkable area.
We have 1,200 apartments coming on line downtown and expect a melting pot of people who live here yearround and those who rent apartments a few months of the year. More people will want to come visit us.

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SIESTA DRIVE RETAIL OPPORTUNITY in Sarasota, FL – OUT OF CONTRACT!!

Source: SIESTA DRIVE RETAIL OPPORTUNITY in Sarasota, FL – OUT OF CONTRACT!!

Improve Your Commercial Property Cash Flow

 

Image result for money business

The Value of Cost Segregation and Reducing Your Taxes

The Situation

In any economic time, it is important to manage your cash flow wisely.  For property owners, it can mean the difference between protecting your investment and foreclosure.  One way to improve cash flow and reduce taxes on commercial property is through Cost Segregation.  Cost Segregation allows the owner to accelerate depreciation of certain components of the building from the standard thirty-nine or twenty-seven and a half year schedule to fifteen, seven or five years.  Increasing the rate of depreciation will offset earnings, which in turn reduces federal taxes and provides improved cash flow.

Who Should Consider Cost Segregation?

Cost Segregation can be beneficial in a number of commercial property scenarios including new construction, the purchase of an existing building, with renovation or tenant improvements, or on a property where a Cost Segregation Study has not previously been conducted.  The best candidate for the process is a building or improvements of a value greater than $500,000, and in some cases, lesser expenditures for build-outs can be beneficial.  In addition to the financial opportunity, one real advantage of a Cost Segregation Study is that it can be done on real estate put into service in prior years without needing to amend prior tax returns.  With the new investment income tax, Cost Segregation has become an even more valuable tax savings tool.

How Can We Help?

A Strong Construction Services Team can take you through the Cost Segregation process.  Our staff works directly with a qualified construction cost expert to conduct an analysis of your building, determine allowable depreciation benefits and ensure that all deductions are fully documented and verifiable.  The time needed to conduct a Cost Segregation study varies based on the specific attributes of the property and the owner’s tax situation.

Article via Shirley Fieber, CPA at Kerkering Barberio

Ms Fieber concentrates her practice in the areas of Construction Services which she leads for the firm, Individual and Business Tax Consulting and Real Estate Support Services. She has experience in Partnership and Limited Liability Company taxation. She also provides Cost Segregation Study services to businesses and investors.

Guy Harvey Outpost is coming to an area near you!

A rendering shows some of the features at the planned Guy Harvey Outpost Club & Resort Tarpon Springs. Construction is expected to begin this summer.

A rendering shows some of the features at the planned Guy Harvey Outpost Club & Resort Tarpon Springs. Construction is expected to begin this summer.

BY: BETH LUBERECKI | CONTRIBUTING WRITER via Business Observer

Guy Harvey Outpost already has hotels in places like the Florida Keys, St. Pete Beach and the Bahamas.

Yet the outdoor-centric brand started by prominent artist, conservationist and sportsman Guy Harvey wanted to better reach freshwater anglers who make up a big part of its customer base. “We decided to start looking at how to bring the brand in-shore, away from the beaches to rivers, lakes and streams,” says Guy Harvey Outpost President Mark Ellert.

That led the Fort Lauderdale-based company to launch the Guy Harvey Outpost Club & Resort Tarpon Springs in south Pasco County. The project is Guy Harvey Outpost’s first outdoor hospitality resort community.

 

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