Business Observer Oct. 9, 2015 by Kat Hughes

OCTOBER 9 – OCTOBER BUSINESS OBSERVER OC T O B15, E R2015 9 - |OC TOBER 15 , 2015 | TH R E E D O LL A R SBusinessObserverFL.com

FLOR IDA’S NE WSPAPER FOR T HE C - SUI T E

Hospitality | A $300 million project could redefine Marco Island. PG.12 PASCO • H ILL SBOROUG H • PIN ELL AS • P OLK • M A N ATEE • SA R ASOTA • C H A R LOT TE • LEE • COLLIER

Stay

Awhile Savvy entrepreneurs seize innovations in the so-called sharing economy to battle — and beat — some big players. PAGE 14

Neil and Anne Martinelli | MADEIRA BEACH STRATEGIES

TOURISM

Like a Weed

Deep Dive

A businessman with roots on Marco Island navigates the challenges of a water sports rental company. PAGE 10

The trend du jour in interior design is airy space and fewer cubicles. Several surprising sectors have embraced it. PAGE 16

LAW

TOURISM

COMMERCIAL REAL ESTATE

Fun and Games

Courier Consistency

The Roth brothers cut down the size of their Polk County plant nursery in the recession. Now it’s growing again. PAGE 7

The small isle of Nevis sought an expert to rewrite its trust laws. It found one in Naples. PAGE 8

DON’T MISS

Brent Alexander is going for sincere family entertainment with his latest business venture. PAGE 11

Wide Open Spaces

A massive new FedEx facility is in the works for Fort Myers. It will replace old centers and deliver new jobs. PAGE 17

TOP DEALS Firm buys Ellenton apartment complex for $6.6 million. 17 Builder targets Fort Myers for more storage. 17 Tampa office complex, near USF, sells for $3 million. 17

PAGE

18 Real estate guru talks booms and busts. plumbing-today.com

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Island Time

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BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

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OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

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CoffeeTalk Bank deal chatter heats up

3871 Tamiami Trail, Port Charlotte This 1.1 acre property is one of the last vacant buildable sites on the trail, from Murdock to Charlotte Harbor. City water and City sewer are available to the site. Possible impact fee credits for the 9000 SF building that was taken down after hurricane Charley. The PD is planned to have the building constructed at the front of the site, facing the access road and US Highway 41 Tamiami Trail.

$400,000 Ron Struthers, CCIM 941-769-3316 Ray Brunner 415-608-1942

BURGESS

FOR SALE statewide, C1 was the sixth-fastest growing lender in the country from 2009 to 2014, according to SNL Financial data. It went public Aug. 13, 2014, in an offering that netted $42.3 million. The 10-person board, in addition to Burgess and Sedgeman, includes Alex Sink, former Florida CFO and a onetime Florida gubernatorial candidate. Beyond size and geographical scope, C1 also offers a potential buyer a unique asset: A visible marketing and promotions department. C1 has a corporate partnership with the NBA’s Miami Heat and is the official bank of the Tampa Bay Buccaneers, among other high-profile sponsorships.

Weighty allegations against firm Note to businesses: Having customers sign a gag order to not complain about products in online forums is probably a bad idea — if not illegal. This should-be obvious business advice comes from a complaint the Federal Trade Commission filed Sept. 24 against Sarasota-based weight-loss supplement Roca Labs. The company, contends the FTC, has sold at least $20 million worth of a supposed weight loss powder since 2010. “Roca Labs had an adversarial relationship with the truth,” says Jessica Rich, director of the FTC’s Bureau of Consumer Protection, in a statement. “Not only did they make false or unsubstantiated weight-loss claims, they also attempted to intimidate their own customers from sharing truthful — and truly negative — reviews of their products.” The crux of the FTC’s 31-page complaint, filed in U.S. District Court in Tampa, alleges Roca Labs sued and threatened to sue consumers who shared their negative experiences online or complained to the Better Business Bureau. The company, contends the FTC, filed the suits because it says the consumers violated the nondisparagement provisions of the terms and conditions they supposedly agreed to when they bought the products. “The FTC alleges that these gag

FOR SALE JUST REDUCED!

clause provisions, and the defendants’ related warnings, threats and lawsuits, harm consumers by unfairly barring purchasers from sharing truthful, negative comments about the defendants and their products,” the agency says in the statement. Roca Labs has advertised, marketed, promoted and sold dietary supplements and food products since 2009 through a series of websites that include MiniGastric-Bypass.me and GastricBypassNoSurgery.com. Its products include Roca Labs Formula and Roca Labs AntiCraving powder, which the company billed as safe and effective alternatives to gastric bypass surgery. Roca, says the FTC, claimed users could lose as much as 21 pounds in one month, and users have a 90% success rate in achieving substantial weight loss. Problem is, according to the FTC, Roca’s weight-loss claims are false or unsubstantiated. The FTC also contends Roca failed to disclose they compensated users who posted positive reviews. The FTC, in the complaint, seeks restitution to victims of any ill-gotten gains, in addition to an injunction against Roca to prevent more alleged violations.

500 Tamiami Trail, Punta Gorda Situated at the signalized intersection on Northbound Tamiami Trail and Taylor Road, this property is the gateway to downtown Punta Gorda. A high Average Annual Daily Traffic count of 17,000 means an excellent opportunity to reach thousands of potential customers and clients for any business at this location. This is the center of the Retail, Restaurant, Business and Entertainment establishments for the Punta Gorda Community.

$2,350,000 Ron Struthers, CCIM 941-769-3316 Ray Brunner 415-608-1942

FOR SALE

4135 Kings Highway, Port Charlotte This 13-acre parcel with 1,577’ of Kings Highway front footage has been re purposed for retail development. This is a prime location for a grocery store, as Winn-Dixie and Publix are currently the only choices within an 8-minute drive time radius. Access is great, as it is on a signalized corner. Kings Highway is a major arterial road between Tamiami Trail (¼ mile south) and interstate I-75 4 miles to the North. 1800 2nd Street, Suite 104, Sarasota, FL | 941.925.8586 CBCWorldwide.com Traffic Count is| approximately 14,700 AADT. 16,907 households are located within an Office/Industrial | Retail | Multi-Family | Property Management | Site Selection | Investment Corporate Advisory Services 8-minute drive timeand radius.

$3,985,000 Ron Struthers, CCIM 941-769-3316 Ray Brunner 415-608-1942

Operated by a subsidiary of NRT LLC. 7789FL_1/14

FOR SALE

220 Tamiami Trail, Punta Gorda 220 & 226 S. Tamiami Trail are two buildings on a 15,000 SF Site. The site has 150 feet of frontage on Tamiami Trail and an alleyway at the rear, which is great for delivery of products and also offers additional access to the property. The current tenants are a Hungry Howie’s franchise in 226 and a local tavern JD Lounge in 220. Both leases have one year remaining on a two-year lease. There is no set term or rate with the tenants on expiration. The seller has intentionally structured these leases to provide more flexibility to the new Investor.

$1,090,000 Ron Struthers, CCIM 941-769-3316 Ray Brunner 415-608-1942

FOR SALE

18101 Murdock Circle, Port Charlotte Offering is a 2308 SF Restaurant Building with two drive-through windows and a walk-up window. This property has a well-designed kitchen and the restaurant is currently outfitted for 68 seats. The restaurant flooring is ceramic tile and the kitchen floor is solid poured flooring with several floor drains. Complete with a gas generator on the roof, which will keep it running during any storm or power outage. A lot of thought and planning went into the design of this kitchen and restaurant. Located at the Town Center Mall in Port Charlotte at the entrance to the 16-plex theater.

See COFFEE TALK page 5

$595,000 Ron Struthers, CCIM 941-769-3316 Ray Brunner 415-608-1942

FAWLEY’S WAY OF LIFE: EXCEED YOUR VISION When Bradenton architect Mike Bryant recently cared for the office effects of his late partner, Rick Fawley, Bryant came across a sheet of Fawley’s thoughts, jotted while Fawley attended a conference of the Bradenton Area Economic Development Corp. Speaking at a memorial service for Fawley Oct. 4 at the South Florida Museum courtyard, Bryant says the notes reflected Fawley’s beliefs and approach to whatever he did. In Fawley’s words: Objectives:

¡¡ Anyone can be creative. ¡¡ Awareness of existing creative things that are ongoing. ¡¡ Process for creativity — creating environment. ¡¡ Innovation is the only way to achieve consistent sustainability by everyone in a business. ¡¡ Exceed your vision. ¡¡ Challenges/controversy is about fear. ¡¡ How can creativity overcome fear/ risk … Can’t take biases onto a blank sheet. ¡¡ Not taking a risk is taking a risk.

Ray’s career covers over forty years in retail management, retail real estate leasing and development. Most notably; Eddie Bauer, where he was Vice-President of retail operations and real estate; Conran’s N. America, where he spearheaded a major store expansion program as CEO and Divisional President for retail expansion; and ESPRIT Europe. His vast experience in both North American and European site selection, retail leasing and location strategy brings a valuable resource to the Coldwell Banker Commercial NRT Team.

Call Ray at 415-608-1942 for your real estate needs. RAY BRUNNER

183618

In a nearly two-year run of deals in Florida banking, a large one could be developing. The possible target: C1 Financial. Rumors that the St. Petersburg-based company’s banking subsidiary, C1 Bank, with $1.67 billion in assets through June 30, was up for sale surfaced Sept. 28 in the financial press. By Monday, at least two Wall Street analysts who follow the bank posted reports saying a sale wouldn’t be a big surprise. Shares of the bank (Symbol: BNK, recent price: $19.80) jumped 7% in the days after the stories and reports, on surging trading volume. C1 chairman Bill Sedgeman referred all questions about the rumors to President and CEO Trevor Burgess. Burgess didn’t return calls seeking comment. A C1 sale could make sense, for multiple reasons, especially in timing. For starters, the mergers and acquisitions market for banks in Florida has some steam after several down years. There have been at least 20 bank deals in Florida since the start of 2014, according to The Deal, a trade publication. A dozen of those deals have closed in 2015. Internally, the time might be right for a sale for C1 executives, given how well the bank has done. With 32 locations

Operated by a subsidiary of NRT LLC. 7789FL_1/14

4 topstories from BusinessObserverFL.com

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

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SARASOTA-MANATEE

City hits permits milestone The City of Sarasota set a record for building permits in the 2014-2015 fiscal year, with 8,402 applications. It’s the first time the city surpassed 8,000 permits in one year, according to a release. The permits processed have a construction value of at least $299 million, city officials add in the statement. The city’s fiscal year ends Sept. 30. The building permits include 3,000 condo, apartment and hotel rooms under development. The 2014-2015 total is up 16.6% from fiscal 20132014, when the city processed 7,200 building permits.

quote of theweek

Banker rejoins trust company board

This whole thing could be a flash in the pan, so we are taking a big risk.

banking position. Hudson is a founding director and organizer of Enterprise National Bank of Sarasota, and has held executive positions in the region with Provident Bank, Royal Bank of Canada, Whitney Bank and Stearns Bank. He’s also active in several community organizations, and was appointed to the Sarasota County Public Hospital Board in March. TAMPA BAY

Woman filed 1,000 false tax returns A federal judge sentenced a woman to 10 years and three months in prison for filing more than 1,000 false tax returns using stolen identities. From 2010 to 2014, Tiffani Pye Williams stole the identity of 991 people and filed more than 1,000 fraudulent tax returns, according to a statement from the U.S. attorney’s office in Tampa. Williams pleaded guilty to the offenses April 23. The false tax returns generated more than $5.3 million in refunds for Williams and others involved in the scheme.

Brent Alexander | Escape Countdown SEE PAGE 11

Prominent area banker Tramm Hudson has rejoined the board of directors at Caldwell Trust Co., which manages more than $800 million in assets for clients nationwide. Hudson originally joined the Caldwell board in 2007, but left when he returned to a

Mortgage giant names new CEO Denmar Dixon, chief investment officer and vice chairman of the board at Walter Investment Management Corp., has been promoted to president and CEO at the $1.49 billion mortgage firm. Dixon will assume his new role at the Tampa-based company Oct. 10, according to a statement. He will replace Mark O’Brien, chairman and CEO, who plans to retire. O’Brien will continue as chairman of the board through the end of the year and the company expects him to continue to serve as a director after that, the statement adds. The company focuses primarily on servicing and originating residential loans. CHARLOTTE-LEE-COLLIER

Investors commit $150 million to golf Naples-based Coral Hospitality will lead a group of private investors who plan to spend $150 million to buy golf courses from Tampa to Naples. One of those acquisitions is Rosedale Golf and Country Club in east Manatee

Is the wage gap between men and women real or media hype?

what do you think?

County, a par-72 course with a 22,000-square-foot clubhouse. Terms of the Rosedale deal were not disclosed. Coral, which says it has several other undisclosed acquisitions underway, provides management and investment services for hotels, country clubs and homeowners associations.

Hospital foundation appoints chief Lee Memorial Health System Foundation named Elwood “Skip” Leonard as chief foundation officer. Leonard most recently led the office of development and alumni relations for Dartmouth-Hitchcock Medical Center and the Geisel School of Medicine at Dartmouth College, where he was responsible for philanthropic activities that included a combined $1.2 billion endowment. In 2014, Leonard’s team raised $70 million in cash and pledges and planned a $600 million campaign. Leonard replaces Sharon MacDonald, who continues to serve the health system as chief administrative officer of oncology.

Last week’s question:

Should U.S. regulators get tougher on foreign car manufacturers?

Vote at BusinessObserverFL.com

Insurance

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Bonding

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66.67% Yes 33.33% No

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OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

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CoffeeTalk

FROM PAGE 3

Hear me knocking

Charting A New Course Before beginning any new adventure, it’s important to have a plan. Icard Merrill can help guide you through the complexities of today’s world. From business matters to

RASMUSSEN The chief audiologist for Collier County’s public schools is hitting the road. Ann Rasmussen recently started a private practice called Doctors Hearing that includes home visits for those who request it. Although home visits by audiologists are common in large cities, Rasmussen says she’s the first audiologist to offer this service in the Naples area. “I work with quite a few elderly patients and we don’t realize how difficult it is for people to get in the car and go to the doctor’s office,” Rasmussen says. “Patients who live in assisted living facilities have shuttles, but they

civil disputes to family concerns, our lawyers have the specific skills and experience

only run on certain days.” Because of improvements in technology, the three bags that contain Rasmussen’s equipment easily fit in her Toyota Prius. The heaviest piece of equipment is her four-pound laptop computer, she says. Rasmussen doesn’t charge more for a home visit than an office visit and the service is generally covered by insurance. She considered setting up as a concierge service, but worried patients might think she’s expensive. “I’m here to help,” she says. “That’s why we didn’t brand ourselves as a concierge.”

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AN ALTERNATIVE TO MONEY MARKET FUNDS April is behind us and what a month it turned out to be! The investment community witnessed the amazing upward climb in the major stock indices despite the US Dollar’s continuing strength. Bond yields continue to remain low globally since the end of 2014. In fact, the yield on the 10 Year German Bund briefly dropped below 5 basis points last month. US economic growth forecasts were slashed in late April after the weak Durable Goods report was released on April 24. Nondefense capital goods orders excluding aircraft fell by 0.5% while the prior month’s data was revised lower.

AN ALTERNATIVE TO MONEY MARKET FUNDS

AN ALTERNATIVE MONEY MARKET FUNDS September is behind us and both theTO Dow Jones Industrial Average and S&P 500 continued

their struggles during the issecond quarter. economists China and Brazil, along with the economies of other Weak to revise their target date for a rate hike April isbusiness behind usspending and what aleading monthmore it turned out to be! The investment community witnessed emerging market countries continued to deteriorate. Last month, the China Manufacturing by the Federal Reserve. CNBC.com reported that a growing number of economists do notPMI see the amazing upward climb in the major stock indices despite the US Dollar’s continuing to a 78 month demonstrating how its economy continues Fed rate hike until low, December at the earliest. Our position is that to thecontract. Fed will not raise rates asank strength. Bond yields continue to remain low globally since the end of 2014. In fact, the yield in 2015isdue to the softafter economy as well as the size of the Treasury debt outstanding, now AN ALTERNATIVE TOUSMONEY MARKET focus its debt was cut to junk status last month Standard &FUNDS Poor’s. onBrazil the 10 now YearinGerman Bund brieflrating y dropped below 5 basis points lastby month. atItsover $18 trillion and hit counting. is behind us and whatthe a month turned out to be!being The investment community currency, the Real, an allApril time low against US itDollar since introduced in witnessed 1994. the amazing upward climb in the major stock indices despite the US Dollar’s continuing US growth forecastsifstrength. were slashed in latetoexpense April the Durable Goods report Ineconomic addition, its state controlled oil gas company Petrobras also sawtheits debt rating cut to Bond yields continue remainafter low on globally since end of 2014. In fact, the yield As we have noted previously, theand overall interest thisweak $18 trillion debt were to on the 10 Year German Bund briefly dropped below 5 basis pointsaircraft last month.fell by 0.5% junkreleased status last month. was on April 24. Nondefense capital goods orders excluding increase by 1 percentage point (100 basis points) the US budget deficit would climb by $180 while prior month’s data revised lower. US economic growth forecasts were slashed in latebillion April after thedespite weak itDurable Goods report At itsthe peak in 2009, Petrobras had aexpenditures market capitalization of $310 making atrecord one point billion dollars, assuming all was other remain unchanged. And tax

ANDERSON be met by rising demand if the current pace of construction continues. In particular, he says growing household formations and downsizing baby boomers fuel that demand. “There’s no doubt multifamily is strong,” Anderson says. “We finally are seeing close-to-normal construction.” Of greater concern is senior housing, which Anderson says will see “massive overbuilding” in the next five years. “Eventually we’ll get out over our skis on senior housing,” he cautions.

was released on April 24. Nondefense capital goods orders excluding aircraft fell by 0.5%

the fifth largest company in the world based on was market capitalization. At the end of September, revenues last year, the 2014 USwhile budget defi cit over the prior month’s data was revised lower.billion Weak business spending is leading more economists to$480 revise their dollars. target date for a rate hike Petrobras market capitalization was less than $25 billion. Petrobras has more than $120 billion Weak business spending is leading more economists to revise their target date for rate hike by the Federal Reserve.having CNBC.com reported that a growing number of economists doa not see I in strongly recommend a cautious outlook for the US stock market. month’s S&P debt. Several of its debt issues now yield more than 10%, a that clear sign number of itsLast weakened state. by the Federal Reserve. CNBC.com reported a growing of economists do not see Fed rate hike until December at the earliest. Our position is that the Fed will not raise rates a500 quarterly earnings reports demonstrated the negative impact of the strong US dollar on Fed rate hike until December at the earliest. Our position is that the Fed will not raise rates a Nevertheless, back in June Petrobras was able to issue $2.5 billion of 100 year bonds with a inprofi 2015 due to multinationals. theofsoft economy as due well assoft theeconomy size of the Treasury outstanding, now in 2015 togrowth the as well asUS the sizeto of come the US debt Treasury debt outstanding, now tsatfor US Revenue remains diffi cult by. Valuations have yield issuance 8.45%. at over $18 trillion and counting. atbecome over $18 trillion and counting. extended as well. Interest rates in the US and Europe remain low as the Reserve keep As we have noted previously, if theFederal overall interest expensedecided on this $18to trillion debtrates were to

increase byBarclays, 1last percentage point basis points) USinternational budget defiitcitpolled would climb by $180to atwe zero at to its September. the (100 highly investment As have noted previously, if thelate overall interest expense onthe this $18 trillion debt were According ameeting report inin Barron’s month, 71% ofregarded fund managers believe billion dollars, assuming all other expenditures remain unchanged. And despite record tax bank, now forecasts the Fed will not begin raising rates until early next year. The Fed’s final increase by fairly 1 percentage pointrevenues (1008% basis US budget defi citbillion would climbpointed bytwo $180 stocks are valued, while just consider undervalued. The article also last year, points) the 2014them USthe budget defi cit was over $480 dollars. meetings of 2015 are set for October 27-28 and December 15-16. billion dollars, assuming all other expenditures remain unchanged. And despite record tax out that Wall Street analysts expect S&P 500 earnings to rise less than 1% this year. Stock I strongly recommend having a cautious outlook for the US stock market. Last month’s S&P revenues last year, the 2014 US budget defi cit was over $480 billion dollars. buyback activity is enabling many companies to report improving earnings per share even 500 quarterly earnings reports demonstrated the negative impact of the strong US dollar Several firms announced significant cost cutting and job reduction plans last month. Caterpillaron profi ts forcult US multinationals. Revenue growth remains difficult to come by. Valuations have though growth diffi to achieve. expectsrevenue to cut its annualremains expenses by $1.5 billion and trim its payroll by up to 10,000 jobs by become extendedoutlook as well. for the US stock market. Last month’s S&P I strongly recommend having a cautious 2018. Hewlett Packard plans to cut another 25,000 to 30,000 jobs as it prepares to split the We quarterly have good news toreports reportAccording to ourto readers. Clients Capital have a report inthe Barron’s lateof lastAmes month, 71% of the fundManagement managers US it polled believe 500 demonstrated negative impact of strong dollar company intoearnings two publicly traded firms, Inc.while and HP Enterprise. The split is article expected to on stocks are (15.75%) fairlyHP valued, just 8% consider them undervalued. The also pointed seen their accounts grow nearly 16% year to date. Our dividend capture strategy is profi ts for US multinationals. Revenue growth remains diffi cult to come by. Valuations have occur in early November with HP Enterprise under the HPE. out that Wall Street trading analysts expect S&P 500ticker earnings to rise less than 1% this year. Stock workingextended well. become as well. buyback activity is enabling many companies to report improving earnings per share even

See COFFEE TALK page 6

SURVEY: FEEL SOME GOOD VIBES expect their company’s sales to improve during the next year; ¡¡ Less than two of 10, 17%, believe they are worse off today than six months ago; ¡¡ Nearly half the respondents, 48%, say they are better (35%) or much better (12%) off today than six months ago. Some concerns, of course, remain: Those include access to capital, economic uncertainty, the growth management process, workforce quality and government regulations.

year. And in most cases, their revenues largely or entirely in North America. just what you are have derived been seeking.

from 2pmgood - 2.30pm EST every Friday. The show can also beofheard on theManagement station’s website We to to our readers. Clients Ameslive Capital have I now host aAM weekly show on WWPR 1490 AMThe in theshow Tampacan Bay region. Theheard show airs Myhave weekly radionews show on report WWPR 1490 airsradio at 2pm each Friday. be (1490wwpr.com). Taped broadcasts of each show are also available on my fialso rm’s website seen their accounts grow nearly (15.75%) year to date. dividend capture strategy is from16% 2pm - 2.30pm EST every Friday. The showOur can also be and heard news live on the station’s website live on the station’s website (www.1490wwpr.com). My prior radio shows columns are (www.amescapmgmt.com). Enjoy! (1490wwpr.com). Taped broadcasts of each show are also available on my firm’s website working well. available on my firm’s website (www.amescapmgmt.com). (www.amescapmgmt.com). Enjoy! IfIfyou unhappy with returns offered by money market funds, feel free to contact us. If you are unhappy with the returns offered by money market funds, feelto free to contact us. youare are unhappy with the the returns now offered by money market funds feel free contact us. Several S&P 500 companies have once again increased their quarterly dividends to reward their shareholders. I encourage you to contact my firm to discuss how we can assist you in obtaining better returns on your capital. Our conservative, income oriented approach may be just what you have been seeking.

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I now host a weekly radio show on WWPR 1490 AM in the Tampa Bay region. The show airs info@amescapmgmt.com from 2pm - 2.30pm EST every Friday.info@amescapmgmt.com The show can also be heard live on the station’s website 4419 Samoset Drive, Sarasota, FL 34241 4419 Samoset Dr.are Sarasota, Fl. 34241on my firm’s website (1490wwpr.com). Taped broadcasts of each show also available (www.amescapmgmt.com). Enjoy! 1686590

Cautious optimism has given way to a relaxed confidence when it comes to what business owners statewide think about the economic recovery, according to the Florida Chamber of Commerce’s Small Business Index Survey. The survey was released Sept. 28 at the 2015 Future of Florida Forum in Orlando. Results of the survey include: ¡¡ More than half, 60%, of respondents expect the economy to improve during the next 12 months; ¡¡ More than three-fourths, 77%,

Maintaining a defensive stance continues to be ourdiffifocus as we employ our conservative though revenue growth remains cult to achieve.

Several companies have once again increased their quarterly dividends to reward dividendS&P capture strategy. Please avoid investing thereaders. emerging markets, the According to 500 a report in Barron’s late month, of fund managers itespecially polled believe We have goodlast news to report in to71% our Clients of Ames Capital Management have their shareholders. I encourage you to contact my fi rm to discuss how we can assist you BRICS (Brazil, Russia, India and China). Two of these countries are Communist and fourinis seen their accounts grow nearly 16% (15.75%) year to date. Our dividend capture stocks are fairly valued, while just 8% consider them undervalued. The article alsoallstrategy pointed working well. OurEven capital. conservative, oriented approach mayStock be obtaining better returns on your of that theseWall nations areanalysts riddled with corruption. though sectors such as the1% major out Street expect S&P 500 earnings toincome rise less than this telecoms, year. Several S&P 500 pipelines companies oncefallen again increased their quarterly dividends to reward just whatactivity youmajor have been seeking. utilities, the and themany oil and gas have out of earnings favor, these companies buyback isoils enabling companies to have report improving per share even shareholders. I encourage you to contact my firm to discuss how we can assist you in offer generous dividendremains yieldstheir with the opportunity for significant capital gains over the next though revenue growth diffiWWPR cult achieve. conservative, oriented obtaining better to returns on AM your capital. I now host a weekly radio show on 1490 in theOurTampa Bayincome region. Theapproach show may airsbe

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Is the apartment development boom at greater risk of a bust? That was a big question at a recent real estate confab in Fort Myers, where Lee County is witnessing a surge in apartment construction. For example, Lee County builders pulled permits for 722 apartments in September, up from 15 units in the same month in 2014, according to the Lee County Community Development Department. “You’ve got to watch it,” warned Randy Anderson, chief economist of Los Angeles-based Griffin Capital, which manages $4.8 billion worth of commercial real estate. Anderson is well known in Florida as a former professor of real estate at the University of Central Florida and a frequent speaker to real estate groups statewide. Speaking at a symposium hosted by the Real Estate Investment Society at Florida Gulf Coast University, Anderson says he has pulled back on the firm’s apartment investments. Anderson estimates the apartment market may be in the later stages of the development cycle. Although he’s more cautious, he remains confident the growing supply of apartments will

160754

Apartment boom in late stages

4419 Samoset Dr. Sarasota, Fl. 34241

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

CoffeeTalk

datasnapshot

FROM PAGE 5

Kirkwood kicks it up When Wayne Kirkwood received Lee County’s economic development lifetime achievement award recently, the electrical contractor got some good-natured ribbing about his wardrobe. More specifically, his trademark cowboy boots. “I always notice, for some reason, his boots,” says Robbie Roepstorff, in a video that played for more than 1,000 people KIRKWOOD who gathered to celebrate Kirkwood’s award at the industry appreciation event at Harborside Event Center in Fort Myers. “He’s worn those for as long as I’ve known him,” says Denis Noah, chair-

man of the Horizon Council, the economic development organization in Lee County. And they’re not just any old boots, either. “These are snake skins he’s wearing,” says Noah, partner at Henderson, Franklin, Starnes & Holt law firm in Fort Myers. But as they say, the boots don’t make the man. “Sometimes men who wear boots are trying to make a statement,” says Roepstorff, president of Edison National Bank in Fort Myers. But not Kirkwood, she notes. “That’s just Wayne, that’s his whole profile. He’s just very grounded.”

Punta Gorda

$25.4, 17.2%

Naples

$84.1, 11.2%

Tampa-St. Petersburg

$693.9, 10.8%

Cape Coral-Fort Myers

$160, 10%

Sarasota-Bradenton

$176, 9.6%

Winter Haven-Lakeland

$140.5, 9.2%

SOURCE: FLORIDA LEGISLATURE OFFICE OF ECONOMIC AND DEMOGRAPHIC RESEARCH

Petal to the medal The pay-it-forward concept — buying someone’s coffee on the drive-thru or bridge toll — has hit the florist industry. And Beneva Flowers in Sarasota, run by nationally recognized florist entrepreneur Art Conforti, has embraced it. For Beneva Flowers, which recently acquired an independent florist on Longboat Key, that meant participating in Petal it Forward, a program run in conjunction with the Society of American Florists. The gist: During the week of Sept. 28-Oct. 2, Beneva Flowers employees surprised area businesses, from a

Business investment ($ millions), Annual change (%)

Area

BMW dealership to an Apple store to a bakery, with two bouquets of flowers. One was for an employee at the business, the other was for that business to give forward to someone else. “People love to get flowers ‘just because,’” says Conforti, “so we wanted to create random smiles during this week, and give people a chance to do the same for someone else.” Petal it Forward, adds Beneva employee Lindsay Zimmer, was also a way for the store to create social media buzz. That included Facebook pictures and posts and Twitter updates under #petalitforward.

Business investment: No slowdown Even heading into slower summer months, businesses on the Gulf Coast continued to boost spending on everything from computers to packaging, machinery and medical supplies. According to the latest data available, taxable sales of such business expenses rose significantly across all areas of the Gulf Coast in June on an annual percentage-change basis. Every area in the region posted

higher annual percentage increases in business investment taxable sales in June than the state’s 7.4% increase. Punta Gorda showed the biggest gain in the state, up 17.2%, followed by Miami, with 17%. Three areas of the state posted annual percentage declines in taxable sales in business investment: Ocala (-3.6%), Orlando-Kissimmee (-1.8%) and Sebastian-Vero Beach (-0.9%).

American Momentum Bank is pleased to announce that

Mr. Steven A. Watts

has been appointed Southwest Florida Market President Mr. Steven A. Watts joined American Momentum Bank in 2007 as Senior Vice President- Commercial Division and has over 17 years of experience in commercial banking. As the Southwest Florida Market President, Mr. Watts is responsible for leading the growth of American Momentum Bank from Sarasota/Bradenton south to Naples/Marco Island. Mr. Watts comments, “I am excited to take on this new role. My goal will be to grow our market share along the Gulf Coast from Sarasota/ Bradenton south to Naples/Marco Island. We will be seeking clients who appreciate our highlevel of service and can add value for our shareholders. Attracting experienced banking professionals and continuing to provide outstanding banking products and services to our clients will be keys to our success.” Please join us as we congratulate Mr. Watts in his appointment!

About American Momentum Bank American Momentum Bank, with total assets of $1.1 billion as of August 31, 2015, provides comprehensive products and services for businesses and individuals. The bank has 15 full-service banking centers in Florida, including Orlando, Tampa, Clearwater, St. Petersburg, Sarasota, Lakewood Ranch, Naples and Winter Garden. It also has three full-service Texas banking centers in Bryan/College Station and a loan production office in Dallas. American Momentum’s strong capitalization, superior asset quality and experienced management teams position it as one of the premier banks in each state. Steven A. Watts 8625 Tamiami Trail North | Naples, FL 34108 | (239) 213-9504 swatts@americanmomentumbank.com

| Member FDIC

176221

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americanmomentumbank.com

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

infocus | strategies |

RICHARDSON KLEIBER WALTER

Operators of a $5.5 million plant nursery learned a valuable lesson in the downturn: Downsizing is OK — in everything but customer service.

We are not here to make a quick sale. We are here for the long haul. Craig Roth | Sunshine Growers

CINDY SKOP

CRAIG ROTH has operated Sunshine Growers in Polk County for nearly 30 years. He co-owns the business with his brother, SCOTT ROTH. They also sell large potted Heartbreaker Tomato plants year-round with fruit ready to pick and eat off the vines. Ornamental peppers presented with marigolds — said to ward off insects — around the base of the plant is another popular seller, along with combo planters, small majestic palms and hanging plants. Before the recession, the company only made deliveries in Florida and Georgia. These days its trucks travel all the way up the East Coast.

According to the Florida Department of Agriculture and Consumer Services, there are about 3,000 wholesale plant nurseries doing business in the state. Numbers like that would seem to generate a great deal of competition for Sunshine. But stability, say the Roths, is a useful weapon. “In this business, a lot of people come and go. We go the extra mile to provide good customer service,” Craig Roth says. “We try to be consistent and faithful to our customers. If we make a mistake, we

Jeff Button

RICHARDSON KLEIBER WALTER

Jeff@SarasotaWarehouses.com

Nicole Button

Nikki@SarasotaWarehouses.com

941-378-2328

www.SarasotaWarehouses.com

admit it and make it right.” Policies such as that have been in place since the two brothers, teenagers at the time, bought the nursery in 1986. While in high school, they started a lawn service, so a running a plant nursery seemed like a logical next step. It took them five years to make a profit, but during that time Roth says they perfected their crops. Although the company has since diversified from most of those crops, they kept the staple of their original ones. Poinsettias remain one of the favorites among their clients, for instance, with sales of approximately 250,000 annually. A tough flower to grow, the company is still discovering new ways to present the traditional holiday plant. One successful variation last year, for Publix, was white poinsettias sprayed with festive peach and orange glitter. “We have the mantra ‘whatever it takes,’” Craig Roth says. “We are not here to make a quick sale. We are here for the long haul.”

KLEIBER BUTTON MANAGEMENT INC. Lic Real Estate Broker

NEW PRICE

KLEIBER BUTTON INC. Lic Real Estate Broker

BY ANITA TODD | CONTRIBUTOR

Sunny Days F or nearly 30 years, brothers Craig and Scott Roth and their staff at Sunshine Growers have combined sweat equity, trial and error and good business practices to outlast competition in a crowded industry. The result: a wholesale plant nursery that deftly survived the recession and had $5.5 million in sales last year. “Sales are starting to come back after seven years,” Craig Roth says. “I think we’ve turned the corner.” Sunshine has an enviable customer list filled with familiar household names such as Publix, Walmart and Costco. Those chains sell Sunshine’s unique potted flowers, vegetables and plants. Since purchasing the business in 1986, the Roths have relied on niche products like poinsettias and mums, selling them by the hundreds of thousands. But when the recession hit in 2008, the company re-evaluated its business plan. It diversified from flowering creations to more practical offerings. Customers were still spending money, but on more sensible purchases like vegetables. The brothers also downsized their business by selling their third location in Plant City. Now they have 52 acres in two locations: Lakeland, where there are offices and a nursery, and Fort Meade, which houses its outdoor division. The company has 45 employees. “We got away from some of the products we were used to — like mums, mini potted roses and lilies at Easter. Other things have taken their place like 1- and 3-gallon potted vegetables,” Roth says.

BusinessObserverFL.com

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8 infocus | law |

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

BY JEAN GRUSS | EDITOR/LEE-COLLIER

Island Time M ost people have probably never heard of Nevis. But the small Caribbean island of 10,000 inhabitants is well known to financial planners for high-net-worth individuals thanks to Naples attorney Jonathan Gopman, chair of Akerman’s trusts and estate practice. That’s because he recently helped the island rewrite its trust laws so it could be more attractive to wealthy people. Nevis (pronounced neevis) hopes to boost its standing among countries that make it difficult for creditors to reach the assets of entrepreneurs, business owners and wealthy families who have established trusts there. “The laws intentionally create barriers to make it unfeasible to go after them if they’re structured properly,” says Gopman. For starters, creditors have to post a $100,000 bond with the government of Nevis just to file suit against a trust. “The U.S. is our biggest source of clients,” says Jan Dash, managing partner of Liburd and Dash, a law firm in Charlestown, Nevis. Although tourism is the biggest industry on Nevis (there is a Four Seasons Resort on the island), the financial services industry is runner-up in terms of employment and income it generates for the island municipality. Business for Gopman is also brisk. He estimates the establishment of foreign trusts is about 50% of the estate planning business in his practice. “We try to give our clients an experience they can’t get somewhere else,” he says. Foreign trust work is also often an entrée into helping business owners restructure their businesses for better

Naples attorney Jonathan Gopman helped the Caribbean island of Nevis rewrite its trust laws. It’s now a leading refuge from creditors. N

St. Kitts Florida

Nevis

St. John’s

Guadeloupe Cuba

Dominican Republic Puerto Rico

Nicaragua Venezuela

BRIAN TIETZ

JONATHAN GOPMAN, a partner in Akerman’s Naples office and chair of the firm’s trusts and estates practice, helped the tiny island of Nevis rewrite its trust laws. protection from creditors. Gopman says a foreign trust might be a solution for an entrepreneur with as little as $1 million in liquid assets. Fees might range from $15,000 to $200,000 or more, but typically average about $30,000 to $40,000 per case, depending on the complexity. The use of foreign trusts is becoming more mainstream as the Internet and better communications shrink the world. “At first, it does sound kind of exotic,” Gopman says. Like any asset, Americans are required to report income from the trust to the IRS. Gopman emphasizes a foreign trust

is designed to protect assets from creditors, not hide them from the tax man. Indeed, Nevis recently agreed to report information to the IRS on assets of more than $50,000 held by U.S. taxpayers. “It is a highly regulated environment and it wasn’t 20 to 25 years ago,” says Gopman. Before the Internet and email, it used to take months of sending documents back and forth by FedEx to establish a foreign trust in a place such as Nevis. “Now the barriers to entry are lower,” says Gopman. Gopman got into the foreign trust business when he was a young tax and

estate planning attorney in the early 1990s. “Years ago, someone threw a foreign trust case in front of me,” he says. His first case involved a trust established in the Cayman Islands. There were few practitioners in that special area, in part because it was time-consuming work due to the remoteness of the islands. But Gopman, born and raised in Miami, was quickly drawn to foreign trust work because the domestic trust work was sometimes dull. “I was looking for something more exciting,” he says. Gopman joined what was then a small group of attorneys who are now considered leading experts in the field. “Those of us early on had the better contacts,” says Gopman. Those relationships paid off when Nevis asked Gopman to help it rewrite its laws, the only U.S. attorney invited to the project. It’s a winning pitch for prospective clients: “We wrote the laws,” Gopman says. Follow Jean Gruss on Twitter @ JeanGruss

MOBILITY AND SECURITY Can You Have Both?

Studies show a large majority of employees use smartphones for work. At a minimum, they are reading and responding to business emails. Many do not password protect the devices and often attach to unsecured Wi-Fi networks. Then there is the statistic that over three million smartphones were stolen in 2013 according to Consumer Reports. Smartphones and tablets should be viewed as very small laptops. They have the same computing power and storage capabilities of the best laptops from a few years ago. As a business owner, would you let your employees take laptops out of the office with no passwords or not worry about how they accessed your data? So why are these mobile devices treated differently? Your employees consider these devices inexpensive and disposable. They are “only looking” at emails while they checkout other social media, so why worry about security? There is a battle between your requirements to protect critical business data and the convenience employees are accustom to when using mobile devices.

Business owners need to ask themselves if they are protecting their customer, vendor and employee confidentiality at all times. Are they controlling data integrity when providing anywhere, anytime access to business assets? What data is accessible, and probably downloadable, to employees when not in the office? Requiring passwords, using virtual private networks (VPN), encrypting data and implementing mobile device management are just some of the technical options to improve security. If you allow Bring-Your-Own-Device (BYOD), a complete written understanding of how you protect your business data on their personal devices is critical. Most important, make your employees part of the solution. Educate them on the importance of data security. Provide them standard policies and procedures. Let them know the freedom of mobility brings with it responsibility and accountability. To find out how your company can have both security and mobility, contact SouthTech for a free IT review. Call today at 941-953-7455 or visit www.southtech.com

176565

Late in 2014, research stated the number of active mobile devices exceeded the total population of the world. And that number will continue to grow. Not all of these devices are being used for business, but the separation of personal and work time is diminishing. Employees state they have a better work-personal balance by using their mobile devices. They also feel that mobile applications make them more productive.

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

BusinessObserverFL.com

SALVATORE

The Mall at University Town Center 941.364.5300. 120 University Town Center Drive.

180204

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10 infocus | tourism |

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

BY JEAN GRUSS | EDITOR/LEE-COLLIER

Ride the Wave BRIAN TIETZ

MARK BAHR, president of Marco Island Watersports, runs a fleet of boats and personal watercraft in front of top luxury hotels in Marco Island and Naples.

Days of the dude running boats on the beach are long gone. One business that does it now is refined — like most of its clientele.

ark Bahr may be wearing f lip-f lops, shorts and sunglasses, but don’t mistake him for the cabana boy. The well-bronzed Bahr runs a water sports operation that’s as sophisticated as the customers he caters to at luxury hotels on Marco Island and Naples. That includes the Marriott Beach Resort and the Ritz-Carlton Beach Resort. Bahr, president of Marco Island Water Sports, operates a fleet of 75 Yamaha WaveRunners, three $200,000 parasail powerboats and a 45-foot catamaran for sightseeing tours. He also rents chairs, umbrellas and cabanas in front of luxury hotels in Collier County. Bahr has deep roots on Marco Island. His father, Neil Bahr, was the former chief operating officer of Deltona Corp., developer of the island on the southwest end of Collier County in the 1960s. “He priced every lot on Marco Island,” says Bahr,

Our days off are bad-weather days. Mark Bahr | President | Marco Island Watersports

whose father died in 2000. A competitive water skier at the University of Florida, in 1980 Bahr moved to Marco Island, where his brother had a real estate office. But it was during the Jimmy Carter era of high interest rates, and business was slow. “There wasn’t much real estate,” Bahr recalls. So Bahr purchased a singleengine outboard boat to pull guests at the new Marriott on tubes. “Then we started parasailing off the beach,” he says. W hen parasailing off the beach was banned a few years later, Bahr built a 46-by-32-foot platform. A pair of 200-horsepower engines would motor it out in front of the hotel where guests would take off. Since then, the development of a special parasail winch lets riders take off and land on the boat. The business got its big boost in the late 1980s, when Bahr sold two condos in a single day, funding two new ski boats. Today, Bahr says he gets special discount pricing from Yamaha because of the size of his fleet of personal watercrafts. He rents the WaveRunners for $140 an hour or $185 with a guide. “We’re one of Yamaha’s biggest [WaveRunner] customers,” he says. Bahr says he gets special pricing on the three 31-foot parasail boats, too, which can

carry as many as 12 people at a time. The Volvo Penta marine engines that power the boats have computer chips that monitor the performance for the Swedish engine maker. Because Bahr runs his boats for prolonged periods in extreme conditions, Volvo uses the data from the computer chips in Bahr’s boats to refine the motors. “We do their R&D,” Bahr says. Bahr doesn’t disclose financial information for the company, but he estimates revenues have grown 10% annually in recent years. Business grew even during the recession because many hotels filled rooms with leisure travelers who had more time for beach activities. Bahr shares revenues with the hotels in return for exclusive rights to operate on the property and the ability to charge customers on their hotel bill. But the costs of doing business have grown, too. In addition to traditional benefits such as paid vacation, Bahr offers a profit-sharing plan that pays employees an amount equal to 10% of their gross pay. The company has about 40 employees, and two of Bahr’s three young sons are involved in the business. “It retains our best people,” Bahr says. In addition, Bahr has $10 million in liability insurance, 10

Fort Myers

Naples

Marco Island

times the amount required by municipalities to operate. “I’m just fortunate to be able to get it based on our track record,” he says. The costs are personal, too. The company operates seven days a week and is especially busy during traditional holidays. “Our days off are badweather days,” says Bahr. For now, Bahr says there’s plenty of business in Collier County, the gateway to the Everglades. He has added a 42-foot catamaran to his fleet so younger and older people can enjoy seeing dolphins and birds without having to ride a waverunner. “The Everglades is a recognizable name,” Bahr says. Follow Jean Gruss on Twitter @JeanGruss

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

infocus | tourism |

BusinessObserverFL.com

BY MARK GORDON | MANAGING EDITOR

rent Alexander found himself in what some would call a dicey situation on a family vacation to Southeast Asia last year: He was locked inside a room with his wife and two young sons. Yet Alexander, a Sarasota entrepreneur, was there by choice. To get out, Team Alexander had to answer scavenger hunt-type questions and solve a series of puzzles. The quest was part of a new kind of tourism attraction, called real escape rooms. “When we first heard about it we thought this was stupid,” Alexander says. “But once we started doing it, it turned out to be a real great family experience. “It’s like being inside a video game. You have to work your way out.” A West Point grad who previously worked in marketing and community relations for two NFL teams, Alexander thought escape rooms were a great business opportunity. He and his wife, Renee Ryckman, launched a company, Escape Countdown, to operate these rooms. The couple has invested at least $500,000 into Escape Countdown since they launched it in early 2015, all from savings. The first three rooms are scheduled to open later this year. One, for a small market, is in Sarasota, near Siesta Key Beach; a second location, for a mid-

When we first heard about it we thought this was stupid. But once we started doing it, it turned out to be a real great family experience. Brent Alexander | Escape Countdown

size city, is in Tampa, a block east of the Westshore Plaza Mall; and the third location is in Atlanta, across the street from the Georgia Aquarium. Alexander aims to have at least 50 Escape Countdown locations nationally within five years. He hopes to exploit a nascent and fragmented market, filled mostly with mom-and-pop operators. Says Alexander: “There’s not a lot of entertainment out there where the entire family can strive for one goal.” Escape rooms have been around for about two years. Alexander and Ryckman traveled worldwide to try escape rooms in places such as Paris and London. Budapest, says Alexander, has about 40 escape room businesses, where customers include couples on a date and businesses on a team-building experience. Some companies even use escape rooms to try out job candidates. There are about 350 escape rooms in the United States, Alexander says, including some in big cities that pop up and stay open for a few days. The rooms have themes, from Sherlock Holmes to ancient Egypt. The burgeoning popularity is tantalizing and terrifying for Alexander. “This whole thing could be a flash in the pan, so we are taking a big risk,” he says. “But we think people are yearning for social interaction that’s real.” Escape Countdown will have a mix of rooms that can draw families, couples and large groups. The price will be around $28 per person. Alexander worked for the Chicago Bears, in business development, and the Tennessee Titans, in community relations, before he was named senior marketing director for Churchill Downs and the Kentucky Derby. He relocated to the Sarasota area with his family in 2011. “Our goal is to make this a premium experience, more like Disney,” Alexander says. “I’m excited to see how it plays out and people respond.” Follow Mark Gordon on Twitter @markigordon

LORI SAX

BRENT ALEXANDER worked in marketing and community relations for two NFL teams before he co-founded Escape Countdown earlier this year with his wife, RENEE RYCKMAN. The escape rooms the couple will create include themes, such as Mad Hatters and Jail Break.

The Great

Escape New attractions can be tough in a state filled with cruises, resorts and one big mouse. Brent Alexander thinks he’s cornered a winner.

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

HOSPITALITY BY JEAN GRUSS | EDITOR/LEE-COLLIER

BRIAN TIETZ

RICK MEDWEDEFF, general manager of the Marco Island Marriott Beach Resort, is spearheading a $300 million renovation and expansion of the iconic hotel.

The Art of More O

The Marco Island Marriott Beach Resort’s $300 million upgrade will have an economic impact beyond the small island in Collier County. It’s another sign of the recovering tourism industry.

ne hotel has the power to put a city on the map. Ask anyone in Naples, where the city’s two Ritz hotels have turned the former sleepy town on the edge of the Everglades into a top-tier destination for wealthy tourists and corporations. Now a $300 million renovation of the Marco Island Marriott Beach Resort from insurance giant and owner MassMutual could breathe new life into the island and put it on par with Naples. When renovations are completed in January 2017, the Marco Island Marriott will be rebranded as a JW Marriott resort, a luxury brand with 80 hotels worldwide. It will be the first JW Marriott on the Gulf Coast. The scale of the renovation and expansion is breathtaking: The hotel is building 110,000

square feet of event space, nearly the size of two football fields; it’s renovating all 726 existing rooms; and it’s adding a new 94-room adults-only tower with a rooftop pool, restaurant and bar. It’s also building a 12,000-square-foot entertainment center, renovating nine restaurants and adding two more. It recently completed $10 million worth of pool renovations and added a new $7 million kitchen to accommodate the growth. Rick Medwedeff, the general manager who is spearheading the project, is already seeing success. “For 2017, we’re at 40,000 rooms booked,” he sm i les. A not her reason to smile: Medwedeff says he’ll be able to boost rates 30% without sacrificing already high occupancy. “The final outcome and rebranding truly does support the fact that we are collectively a luxury destination,” says Jack Wert, executive director of the

Naples, Marco Island, Everglades Convention and Visitors Bureau. Indeed, two Ritzes and a JW Marriott elevate the area’s ability to compete with luxury destinations as far as Hawaii. “Competition in the marketplace is really intense,” says Wert. CORPORATE BUSINESS Five years ago, in the middle of the recession, few hospitality industry executives were t h i n k i ng about cor porate business. It had virtually disappeared when companies slashed expenses. But Medwedeff wasn’t one of them. He foresaw the resort’s inefficient meeting space would be its Achilles’ heel when the economy recovered. The ceilings were too low, the rooms couldn’t be partitioned and the space outside the venue where people like to network was too cramped. The Marriott’s aging con-

vention space fell off the corporate-meetings radar, especially when compared with other modern beach resorts. “We found ourselves struggling to attract new clients,” Medwedeff says. “We would be at risk long-term.” But Medwedeff, who oversees 750 employees, is a skilled politician. Over a period of five years, he persuaded residents, city officials and the hotel’s owners to move on one of the biggest construction projects in the region. Medwedeff presented his plans to area residents early on, and agreed to make changes more to their liking. For example, he eliminated a parking deck and lowered the height of the new tower in response to their suggestions. “People are scared of change,” Medwedeff acknowledges. Public meetings also helped Medwedeff get the political backing he needed for city approvals for the undertaking.

EXECUTIVE SUMMARY Industry. Hospitality Trend. Luxury hotels are benefiting from higher room rates. Key. Hoteliers must reinvest to stay current.

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

‘NEVER WAVERED’ Collier County visitor stat ist ics prove Medwedef f ’s theory. At the peak of the sea-

If you stop, you’re going backwards.

Rick Medwedeff | General manager, Marco Island Beach Resort

COURTESY

wedeff runs his hotel. “He is an absolute hands-on manager, he’s constantly walking the property talking to guests,” says Wert. “He knows his people, he calls them by name. That’s really important.”

be considered a local. It’s unusual for a manager to stay much longer than five years at a single hotel. Medwedeff is also active in hospitality industry associations, Me dwe def f, w hose f i r st hospitality job was as a night auditor at a Best Western in Maryland, has a quick smile and an easygoing, approachable nature. He’s also a skilled operator, and was named general manager of the year for the entire Marriott chain in 2012. Wert watched Medwedeff in action. “I attended a number of public meetings and he was on message every time. He never wavered,” Wert says. “He would talk to anybody who had questions; he wanted people to have the right set of facts.” That’s also the way Med-

HUMBLE ROOTS The Marriott on Marco Island had humble beginnings. It once was a 50-room inn where the Mackle Brothers’ Deltona Corp. housed prospective buyers for lots on the island they had purchased for $7 million in the early 1960s. Through the years the hotel added rooms and amenities to attract corporate travelers. Marriott operates the property today for MassMutual. “That’s one of Bill Marriott’s favorite properties,” says Wert. “It’s great when the CEO feels like that.” He’s going to like it even better if Medwedeff has anything to do with it. The hotel, to display its renovations, plans to launch a marketing campaign with this tagline: The Art of More. The first phase took three

The Marco Island Beach Resort is undergoing a $300 million renovation project. son in March, for example, revenue per available room in the county reached $318, the highest on the Gulf Coast. The hospitality metric, a function of average daily rate ($345) and occupancy (92.1%), rose 10.5% in March compared with the same month in 2014. Indeed, Medwedeff’s vision of the recovery in the corporate business is coming true. In particular, companies are splurging again on some of their best employees, what hospitality insiders call the “incentives” business. “That market really fell off during the recession,” says Wert. “It’s come roaring back.” One adva ntage for Medwedeff in the project is his 10year tenure as general manager of the hotel — long enough to

months this summer while the hotel shut down completely. “We had almost 1,300 workers here,” Medwedeff says. “It’s been a whirlwind.” The new meeting space will include a 30,000-square-foot ballroom with 24-foot ceilings, and 50,000 square feet of what Medwedeff calls “prefunction” space. That’s where people congregate to network before or after a meeting. The new space will be a vast improvement over the 46,000 square feet the hotel has now for meetings. And the adultson ly tower above t he new meeting space will give business clientele a break from the children and families staying at the resort. But as much as Medwedeff is excited about the new facilities, his eyes really light up when he starts talking about the 12,000-square-foot entertainment center under construction. It will have bowling lanes, virtual-reality golf, 30-foot screens for watching sporting events and a bar and restaurant. “I’m a kid at heart,” he laughs.

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“They saw we were being good corporate citizens,” Medwedeff says. Medwedeff also had to sell MassMutual on the idea they should spend $300 million. Paradoxically, the recovery in the hotel business didn’t make that job easier because the hotel was successful charging an average of $250 a night and had 80% occupancy on average in recent years. But Medwedeff successfully argued the hotel could make as much as 30% more, on average, per room if it had the right corporate meeting space. He pointed to the Ritz-Carlton Beach Resort in Naples, where you couldn’t get a room for less than $1,000 a night at the height of the busy winter season this year. Medwedeff says it’s critical for hotels to keep reinvesting in their properties, even during successful periods. He likens it to a treadmill: “If you stop, you’re going backwards,” he says. Medwedeff also monitored rates other hotels were getting, including The Breakers in Palm Beach and the Fontainebleau in Miami Beach. “We saw the rate potential they’re capturing,” he says. “Now we can play that game.”

BusinessObserverFL.com

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

TOURISM

BY TRACI MCMILLAN BEACH | TAMPA CORRESPONDENT

Rental Revenues

Hotels up and down the Gulf Coast are fighting new competition — individual property owners with access to the masses.

ne of the biggest challenges in the tourism industry is getting the word out. Airbnb, designed to bring people to a single website to book unique accommodations worldwide, is addressing that challenge — in a big way. The company, with a $24 billion valuation, is a website and mobile app that allows people to

list their property as a short-term rental. Airbnb has a presence in 190 countries. In Airbnb, just about anyone can be a host. To the Marriotts and Westins, that means anyone can be competition. The battle, without the regulatory controversy, is similar to how Uber and Lyft have disrupted the taxi industry. The Business Observer spoke with

several owners and agents who list properties and rooms on the Gulf Coast on Airbnb. Perhaps the biggest lesson shared by all was that through Airbnb, they have an opportunity to compete against the Goliaths. Here’s a glance at how they’ve used Airbnb to become the hospitalty industry’s newest entrepreneurs.

ANNE AND NEIL MARTINELLI MADEIRA BEACH

MARK WEMPLE

ANNE and NEIL MARTINELLI use Airbnb for a property they own on Madeira Beach.

RYAN BLOCK SANIBEL ISLAND Re/Ma x real estate agent Ryan Block says Airbnb approached his company last February to list properties. By March, all 50 of his vacation properties were posted. Now the site is his top source for bookings — a spot that used to be held by FlipKey and TripAdvisor. “The rep had people do everything for us,” posting the photos and rates on the site, he says. Now Block and his colleagues go through and make the property profiles more robust, with additional information like things to do and online guestbooks. The Re/Max team has an office on Sanibel Island, where guests stop by to pick up their parking pass and keys. Re/Max also has a full-time inspector who visits each property to make sure everything is perfect before a new guest arrives. Around 95% of the owners of the properties that Block manages are out of state or out of the country, so Re/ Max takes on all of the cleaning and maintenance responsibilities, Block says. Even though the Re/Max pres-

ence is growing on Sanibel, they’re still considered a small property management company on the island. Out of the seven or eight competitors, only a few are listed on Airbnb. Says Block: “We’re smaller so we have to stay up with the technology that the bigger companies aren’t.” Block likes Airbnb because it is an easy-to-use app for responding to inquiries. Airbnb can also tie in schedules from other rental sites where you have property listed, such as VRBO and HomeAway. But being all online can also be a challenge, says Block, who sometimes wishes he could have more a of a dialogue with the guest to help them figure out which property might be best for them. But that’s just the reality of how people have changed their booking habits, he adds. Perhaps the best benefit of Airbnb is the cost, according to Block. Airbnb charges the guest a 2% service fee and the property manager 3%. “For us it works well because they process the transaction and we avoid the 2.5% credit card fee,” he says. VRBO and FlipKey charge 10% or more for the booking.

Two and a half years ago Anne Martinelli and her husband Neil Martinelli decided they wanted to invest in rental property. They bought a small four-unit motel on Madeira Beach in Pinellas County that needed some work. “Our initial intention was to list as a weekly vacation rental,” Anne Martinelli says. After they fixed it up, they started to look for customers by building their own website. But that didn’t get much traffic. Two weeks after opening the doors, they decided to list on Airbnb. Bookings came in immediately. This year they expect to bring in $90,000 in revenues, with a 40% margin. The Martinellis rent each of the studio units for $90 a night, a rate much lower than the surrounding hotels on the beach, Anne Martinelli says. They increase the rates during busy season, and have man-

aged to maintain occupancy around 70%, which is higher than industry trends, Anne Martinelli adds. Airbnb helped the couple figure out an appropriate list price to gain traffic and reviews, Martinelli says. To make units stand out, the Martinellis make sure they have plenty of pictures posted on the listing and they invest in extras such as beach chairs, beach towels and outdoor grills. “Things a regular inn wouldn’t have,” Anne Martinelli says. The biggest challenge for the Martinellis is dealing with issues at the inn during the day — Anne is an accountant and Neil is in merchandising. They ended up hiring the woman who runs their cleaning service to help when necessary. This was a nice change from their first year in business, when Anne Martinelli did all of the cleaning and communication herself. “We enjoy it but sometimes it can be a lot of work,” Anne Martinelli says.

We’re smaller so we have to stay up with the technology that the bigger companies aren’t. Ryan Block

ED CLEMENT

RYAN BLOCK, a Re/Max agent, has used Airbnb since March to rent 50 vacation properties.

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

BusinessObserverFL.com

LOUISE AND EDGAR HANSEN ENGLEWOOD

COURTESY

LOUISE and EDGAR HANSEN, who live in Seattle, rent a property on Manasota Key in Charlotte County through Airbnb.

KEEP IT LEVEL Airbnb has a presence in more than 34,000 cities in 190 countries worldwide. Listings range from shared rooms to mother-in-law suites. Even castles. That’s great news for travelers who like the hyper-local, sharing-economy experience a stay through Airbnb and similar sites can provide. But local governments, convention and visitor bureaus and hotels are watching the site’s increasing popularity closely — mainly to make sure there’s a level playing field. “As long as everyone is operating by the same rules, this industry understands that competition comes with the territory — but fair competition,” says Bob Morrison, ex-

Guests at Louise and Edgar Hansen’s Englewood property are surprised when they realize their host is a television celebrity. Edgar Hansen is on the reality show Deadliest Catch. The Hansens, who live most of the year in Seattle, decided to invest in property in Florida because of Edgar’s financial success. “I’m in a high tax bracket…and we wanted to put our money somewhere that makes sense,” he says. Louise Hansen Googled how to get started. The first thing that popped up? Airbnb. The couple bought a five-unit property on quiet Manasota Key in Charlotte County because they weren’t interested in guests who wanted to party. They have one long-term renter that serves as a property manager, showing guests where they can find laundry and paddleboards. Communication with guests is the key to success, says Louise Hansen, who has made

ecutive director of the Hillsborough County Hotel & Motel Association. At stake are things such as local tourist or “bed” taxes hotels are required to collect from guests. These taxes typically are used to fund local efforts to market their destination to travelers. “To the extent that Airbnb takes a chunk out of the taxable marketplace, that would be a concern to [hotels and CVBs],” says Kevin Carl, managing director of digital for Accenture Travel Services. “In theory, those renting out properties should be collecting and paying those taxes. But by and large in many localities it’s an honorbased system, which in and of itself is a challenge.”

answering requests her full-time job. The couple posted their first unit in December but found people were hesitant to book until they had a few reviews. Once they had a couple of reviews on their listing page, the units picked up traction. They’ve kept busy through the summer and all units are already booked through high season. “We could probably double the price and still keep it rented,” Edgar Hansen says. The Hansens also bought a single-family home on a Siesta Key canal that is separately listed through a property management company. Louise Hansen says the house isn’t shared on Airbnb because it targets a different type of guest. They find most renters from Airbnb are young adventure seekers, while this house is a better fit for someone who seeks a spa-like environment. The Hansens say that thus far the investments have paid off. “We should have done it a long time ago,” Edgar Hansen says.

Airbnb tells hosts they’re required to collect and pay any applicable taxes in their localities. But that doesn’t always happen. “We are doing a lot of education,” says Sherri Smith, assistant tax collector for Sarasota County. Her office looks through sites such as Airbnb to identify short-term rental properties, then sends out letters to inform owners of their obligations. “We really believe that a lot of people want to follow the law and just may not know what the requirements are,” says Smith. Airbnb also presents opportunities. “Airbnb attracts travelers to destinations who might not have traveled there to begin with,” says Virginia Haley, president of

We could probably double the price and still keep it rented. Edgar Hansen

Visit Sarasota County, who’ll be meeting with Airbnb in San Francisco in November. Millennials, in particular, are fans of Airbnb, and the chance to live like a local may lure them to a new city. Airbnb hasn’t really taken off yet in Collier County, but officials there see how it could be helpful. “From late December through the Easter holidays, our vacation-home rentals are pretty well booked up,” says Jack Wert, executive director of the Naples, Marco Island, Everglades Convention & Visitors Bureau. “So it could be an opportunity for some additional folks who want to stay in that kind of accommodation.” — Beth Luberecki

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BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

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21st Century deal among top in nation The year’s not over yet, but the sale of a portfolio of buildings owned by principals and K.L. physicians at MCQUAID Fort Myersbased 21st Century Oncology ranks among the top medical office deals nationwide in 2015. Tampa-based Carter Validus Mission Critical REIT bought 17 buildings containing 208,640 square feet in its $117 million deal, which ranks as the 10th-largest medical-related acquisition this year, according to National Real Estate Investor. Among the properties in the April transaction was 21st Century’s three-story corporate headquarters at 2270 Colonial Blvd. All told, Carter Validus bought company-leased space in five states. Five other Florida properties also were part of the sale. Medical office buildings have outperformed other commercial real estate sectors thanks to stable, typically long-term income streams and through the credit worthiness of most tenants. 21st Century Oncology, for instance, boosted revenue by more than 20% in 2014, to $1 billion. That’s translated into higher sales volume, which stands at roughly double the amount from 2014. “Sellers are in a prime position to take advantage, because as a product type, medical office is as strong as any out there right now,” Marcus & Millichap agent Scott Niedergang told the Business Observer earlier this year. While the Carter Validus21st Century deal is impressive, it’s small-time compared to the top medical transaction of 2015 so far. That would be the $1.6 billion purchase Ventas REIT put together involving 20 properties, including Heart Hospital of New Mexico and Lovelace Regional Hospital of Roswell, N.M., National Real Estate Investor notes.

Giffin joins Cushman & Wakefield Wendy Giffin has left her longtime work home to join Cushman & Wakefield’s Tampa office, as director of the brokerage’s Florida investor services team. She’ll focus on Pinellas and Manatee counties in her new job. Giffin comes to Cushman from Osprey Real Estate Services, where she was president, managing partner and broker of the Michiganbased company’s St. Petersburg’s office for more than 10 years. During her tenure, Giffin completed at least $200 million in sales and leases.

MARK WEMPLE

Companies such as real estate services firm Colliers International Tampa Bay are gravitating toward open design to improve communication and productivity.

Tear down

these walls A growing design trend aims to boost collaboration and eliminate hierarchy among workers. Will it last?

fast-growing architectural trend is shaking up offices around the Gulf Coast by tearing down walls and boosting worker collaboration. It’s called open design. And it aims to increase productivity through greater communication, while appealing to younger workers more accustomed to functioning in groups. “Connectivity is important in our business, as is collaboration,” says Ryan Kratz, president of commercial real estate brokerage Colliers International Tampa Bay. “Connectivity gets more deals done.” The shift to open designed offices also comes as mobile and wireless technology allows employees to work anywhere, and as companies increasingly grapple with ways to cut occupancy costs — for many that’s the second-largest recurring expense. Real estate brokers, architects and landlords alike say the trend is being embraced by a variety of businesses, including brokerages like Colliers, CBRE and Cushman & Wakefield, engineering concerns and even law firms. Greenberg Traurig, a law firm with offices worldwide, including seven in Florida, recently relocated into a 20,000-square-foot open designed office on the 19th f loor of the Bank of America Plaza building in downtown Tampa. The space includes glass front walls, adaptable spaces and expandable multipurpose rooms. “Tenants are working totally differently today,” says Anne-Marie Ayers, a first vice president at CBRE. “We’re seeing complete renovations in law

firms, and we’ve never seen that before.” Part of the shift is aimed at attracting and retaining millenials, people between the ages of 18 and 35, who are fast becoming the largest segment of the nation’s workforce. But the move toward hoteling, as open design also is known, also grew out of a desire by landlords and tenants to clamp down on costs during the recession, says Bert Oliva, managing partner in Tampa for design firm Gensler. Open design offices typically contain more natural lighting, fewer permanent fixtures and walls and more glass than traditional offices. “We’re seeing less ‘me’ space and a desire for more conference space,” says Dan Woodward, vice president of office owner Highwoods Properties in Tampa. “So we’re not seeing a huge difference in tenant improvement costs.” But some companies are spending considerably more on technology with open designs. At Cushman & Wakefield’s Tampa office, for instance, the brokerage spent $2 million above its landlord’s IT allowance. The goal was to outfit new offices on the 33rd floor of One Tampa City Center with interconnected television and computer monitors able to interface with agent’s smartphones. Companies are making up the costs by fitting more workers into open offices. Most offices once devoted about 250 square feet per employee; today the figure has shrunk to 185 square feet.

Connectivity gets more deals done. Ryan Kratz | Colliers International

Perhaps inevitably, though, there’s been some backlash. Especially from seasoned executives accustomed to privacy. “There’s a pride factor at work in some cases,” Kratz says. “Even though we’ve found most offices are used only 30% of the time.” To counter that concern, many architects incorporate so-called huddle rooms or small offices into open designs, so phone calls can be made in private or meetings can be more focused if needed. Parking remains the most daunting challenge and impediment to open design, Woodward says. With more employees squeezing into smaller spaces, some tenants seek as many as eight parking spaces per 1,000 square feet of office space, up from the traditional four spaces per 1,000 square feet. Architects, too, acknowledge some open design concepts may have stretched the limits of today’s corporate acceptance. “There are some concerns stemming from some corners that things have gone too far,” Oliva says. James Hypes, director of Florida operations and a principal at design firm ASD, agrees. Open design remains in the experimental phase, he says. “One of the things I tell clients is this is not one size fits all,” says Hypes. “Open environments are really about providing variety and flexibility.” – K.L. McQuaid

OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

transaction spotlight |

BusinessObserverFL.com

LEASES

BY SEAN ROTH | RESEARCH EDITOR

FedEx to deliver new Fort Myers facility A Kansas City, Mo., developer bought Treeline Avenue land for a package-distribution center. BUYER: Jones Development Co. (JDC Fort Myers LLC), Kansas City, Mo. SELLER: Istrouma Trustee LLC as trustee of Monty Titling Trust 1 PROPERTY: 14050 Treeline Ave. S., Fort Myers PRICE: $1.14 million PREVIOUS PRICE: $750,000, December 1986 SELLER: Airport Gateway Ltd. PROPERTY: a parcel of land between Jetport Loop and Treeline Avenue (southwest of the parcel above), Fort Myers PRICE: $1.1 million PREVIOUS PRICE: $3.4 million, December 1999 (includes additional land) LAW FIRM ON DEED: Vogel Law Office PA, Naples

N 5 MILES

Fort Myers

Cape Coral

867

Lehigh Acres

DANIELS PKWY.

New FedEx Ground distribution center

A new FedEx Ground distribution center is in the works for Fort Myers. The facility, on Treeline Avenue, will be a 213,508-square-foot sorting plant with parking that would have 216 employees on staff at all times, according to plans filed in Lee County. Kansas City, Mo.-based Jones Development filed those plans. An affiliate of the company purchased 21.91 acres on the west side of Treeline Avenue South in two transactions for $2.2 million, according to property records. The property includes 16.91 acres at 14050 Treeline Ave. S. and another five acres to the southwest that include a large retention pond. The price equated to $102,008 per acre. Officials for Jones Development declined to comment on the project, but a spokesperson for FedEx Ground confirms the company awaits a new distribution center. It will replace two older FedEx Fort Myers facilities at 2670 Colonial Blvd. and 1880 Ortiz Ave. The company plans to transfer its existing 150 employees to the new building and hire an undisclosed number of additional employees to meet the growing demand in the region. “The site was chosen because of its

ease of access to major highways, its proximity to customer’s distribution centers and a strong local community workforce for recruiting employees,” FedEx Ground spokesman Jesse Bull wrote in an email to the Business Observer. The property is close to Southwest Florida International Airport, but FedEx says the new facility will have no integration with its air operations. Danny Lathem, project manager with the general contractor, Birmingham, Ala.-based Jim Cooper Construction Co., says it typically takes eight months to build a FedEx distribution center. The project is currently on hold, even though Lee County has issued a building permit, while the developer awaits a wetlands mitigation permit from the U.S. Army Corps of Engineers. The facility is scheduled to be fully operational by May 2017 and it’s slated to partially open in September 2016

to help with the peak season, according to FedEx. FedEx Ground says the new facility is part of a nationwide network expansion designed to boost the company’s daily package volume capacity and increase the speed and services on its network. Since 2005, the company has opened 11 new hubs and expanded or relocated more than 500 local facilities. “The construction of [a] 213,000-square-foot sorting facility brings both an economic boost from the construction and great employment opportunities with a company that is frequently recognized as one of the best places to work,” Glen Salyer, assistant to the Lee County manager and acting economic development director, wrote in a statement to the Business Observer. Commerce Bank is financing the project through a $16 million construction mortgage.

Equity Management Partners acquires Oaks at Ellenton

Developer buys Fort Myers storage, completing project

RMC buys Temple Terrace medical buildings, plans new development

BUYER: Vehicle Fortress LLC (owner: Richard Kohn), Winchester, Mass. SELLER: 14702 Tarmac Court LLC PROPERTY: 14702 Tarmac Court, various units, Fort Myers PRICE: $3.85 million PREVIOUS PRICE: $3.6 million, January 2008 LAW FIRM ON DEED: Rogers Towers PA, Fort Myers

BUYER: RMC USF MED LLC (managers: H. Robert Eggleston III and Mitchell Rice), Tampa SELLER: Terrace Professional Center I LLC PROPERTY: 5210 E. Fowler Ave., Temple Terrace PRICE: $1.71 million PREVIOUS PRICE: $23,000, February 1980

PLANS, DESCRIPTION: Massachusetts developer Richard Kohn purchased the Treasure Chest Storage Condominiums property just east of Interstate 75 for $3.85 million. The property features three buildings with 45 storage units and 3.8 acres of additional land. An Ohio-based developer started a 172-unit storage project on the site. But the developer ran into problems stemming from the recession, and didn’t complete it. An affiliate of First American Bank took over the property through a deed in lieu of foreclosure in June 2013. The new owner plans to develop the remaining 127 units, in six buildings, and rename the project Vehicle Fortress to highlight its focus on auto, RV and boat storage.

BUYER: RMC USF MED East LLC, SELLER: Terrace Professional Center II LLC PROPERTY: 5234 E. Fowler Ave., Temple Terrace PRICE: $1.3 million PREVIOUS PRICE: $180,000, November 1986 TITLE FIRM ON DEED: Fidelity National Title Insurance Co., Tampa

BUYER: Ellenton Apartments LLC (registered agent: Thomas Nash II), Clearwater SELLER: Ellenton Housing Associates Ltd. PROPERTY: 3419 E. 16th St. or 1651 36th Ave., Ellenton PRICE: $6.6 million LAW FIRM ON DEED: Stearns Weaver Miller Weissler Alhadeff & Sitterson PA, Miami

PLANS, DESCRIPTION: Equity Management Partners Inc. purchased the 168unit The Oaks at Ellenton apartments for $6.6 million. The price equated to $39,286 per unit. The complex has 11 residential buildings and a clubhouse on 17.1 acres. The 15-year-old complex was developed using the U.S. Department of Housing and Urban Development’s Low-Income Housing Tax Credit program. That limits rental rates and the income of tenants. “It needs some cosmetic work,” says Ben Mallah, principal of Equity Management Partners. “The parking lot needs to be redone. It just needs a freshening up and a facelift. We will also be doing upgrades to the units.”

Estero

PLANS, DESCRIPTION: RMC Property Group purchased the 22,500-squarefoot Terrace Professional Center for $3.03 million. The price equated to $134 per square foot. The complex is near the University of South Florida and several hospitals. RMC officials say they might redevelop parts of the property.

TAMPA BAY ¡¡ Ascensus Inc. leased 5,642 square feet at 1000 N. Ashley Drive, Tampa from Ashley Avenue Associates I LLC. Mercedes Angell and Jeff Lanning of Cushman & Wakefield represented the landlord. ¡¡ Arthur J. Gallagher Risk Management leased a 9,572-square-foot office in the Meridian One building at 4350 W. Cypress St., Suite 300, Tampa from Highwoods Properties. Joanne LeBlanc and Mary Clare Codd of Colliers International Tampa Bay represented the tenant and Lisa Coulter of Highwoods Properties represented the landlord. SARASOTA-MANATEE ¡¡ Alexa Air LLC leased 2,000 square feet of office and warehouse space at 1635 W. University Parkway, Sarasota from Yonker Investments Inc. Jeff Button of Richardson Kleiber Walter Kleiber Button Inc. handled the transaction. ¡¡ C.S. & D.J. Limited Liability Co. leased a 1,960-squarefoot retail space at 1441 Main St., Sarasota. Ryan Hoffman of Wagner Realty represented the landlord and Linda Emery of Sperry Van Ness Commercial Advisory Group represented the tenant. ¡¡ Metric Engineering Inc. leased a 3,539-square-foot office at 430 Interstate Court, Sarasota. David Greenfield of Greenfield & Associates represented the landlord and Tony Veldkamp of Sperry Van Ness Commercial Advisory Group represented the tenant. ¡¡ Mark Nelson leased 1,400 square feet at 408 30th St. W., Bradenton from Robert Medred. Rico Boeras of Sarasota Commercial Realty LLC handled the transaction. LEE-COLLIER-CHARLOTTE ¡¡ REVS Institute for Automotive Research Inc. leased 5,411 square feet of office space in Collier Park of Commerce at 2900 Horseshoe Drive, Suites 900 and 1000, Naples from Helios Colliers LLC. Dave Wallace of CRE Consultants handled the transaction. ¡¡ Calmar Pain Relief LLC leased a 1,644-square-foot office at 28901 Trails Edge Blvd., Suite 101, Bonita Springs from DaVinci Realty LLC. Andrew DeSalvo and Matt Stepan of Premier Commercial Inc. handled the transaction. ¡¡ I Burnt Mine BBQ leased 1,750 square feet of restaurant space at 3802 E. Tamiami Trail, unit 5, Naples from The SherwinWilliams Co. Rob Carroll of Investment Properties Corp. handled the transaction.

commercial real estate

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

Q&A |

movingup

BY SEAN ROTH | RESEARCH EDITOR

From a single $760,000 deal four decades ago, Clark Toole III has built a real estate career that finds him running Florida operations of the state’s most active residential brokerage. That brokerage, Coldwell Banker Residential Estate Inc., was named the top brokerage in Florida in closed transactions and sales volume for 2014, according to the REALTrends 500 annual ranking report. The Business Observer spoke with Toole recently about market trends, management and why he believes the next real estate crash won’t be a repeat of 2006. Here are excerpts of the conversation: What is driving the quick improvement in the residential market? You’ve got population. [Florida] just passed 20 million people. Unemployment has been shrinking. Tourism is at record-breaking levels...I’m pretty optimistic about the market.

CLARK TOOLE III President of Florida for Coldwell Banker Commercial NRT and Coldwell Banker Residential Real Estate, Sarasota

If we do return to those earlier pricing and sales levels, what’s to prevent another residential real estate collapse? Real estate does cycle, but the 2006 crash was a lot of different things. Today there is more equity in housing. Lots of cash sales. Lending practices are also stiffer. It’s much harder to do a deal with no money down. It was really the lending practices last time that deepened the recession.

Agents: 5,100 Offices: 86 2014 (includes Coldwell Banker United in the Panhandle, which it acquired earlier this year) Total sales volume: $12.7 billion Closed units: 43,350 2013 Total sales volume: $11.35 billion Closed units: 39,787

What are institutional buyers, such as Blackstone, doing in residential real estate now that prices have risen

MARY JO EATON

and foreclosures are rarer? Some institutional buyers are still in the marketplace, but the model they were buying into isn’t what it once was. Many have done well for themselves, and I’ve heard some have notched up their price points a little to go after a little more expensive property.

CBRE Group Inc.

You took this job at the start of a major real estate collapse. How has that experience changed your management approach? I think it made me a little wiser. During the downturn you couldn’t control the price range, you just had to go back to the basics of sales: contacting people, learning what to say, practicing your presentation and knowing as much as you could about the market so you could explain it to the consumer. Fast-forward seven or eight years later, and it’s somewhat the same thing. Every year there’s a new puzzle. Know your people, the market and your presentation. With such a large, varied state, what do you use to help you make decisions? In managing a business, I have access to a lot of facts and figures. I choose to focus on units opened. The reason I focus on units opened or listed, not percentage of increase or average sales price, is those other two are hard to manage. Units opened is a derivative of how many contacts or listings an associate makes. A sale can fall through for a lot of reasons. You have to find a measure that you can tie to setting goals.

Mary Jo Eaton has been promoted to president for the Florida and Latin America markets at CBRE Group Inc. Eaton has led CBRE’s Florida region since 2011. She will now be responsible for 18 CBRE-owned offices and four affiliate offices with more than 3,000 employees in Florida, Latin America and the Caribbean. Eaton will report to Calvin Frese, CEO of the Americas for CBRE. Prior to relocating to Florida in 2011, Eaton was managing director of CBRE’s Baltimore office. She started her career with CBRE as managing director of asset services in the Philadelphia region. Eaton also worked for Equity Office Properties Trust and Lincoln Property Co.

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OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

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20 transactions |

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

BusinessObserverFL.com

DEEDS/MORTGAGES The following real estate transactions more than $1 million were filed in Charlotte, Collier, Hillsborough, Lee, Manatee, Pasco, Pinellas, Polk and Sarasota county courthouses. The information lists the seller, buyer, amount of sale, previous price and date, mortgage and lender, if available, address and book and page of the document. CHARLOTTE COUNTY None COLLIER COUNTY R&H Properties LLC sold to JAZ Automotive Properties LLC, $2,700,000, Mortgage: $2,700,000, JPMorgan Chase Bank NA, Previous Price: $1,600,000, September 2004, ornamentals or miscellaneous agricultural, 10.44 acres, 3295 Pine Ridge Road, 5174483. Bruce Wood as trustee of the Bruce G. Wood Revocable Trust sold to Naples HS LLC, $1,800,000, Mortgage: $1,350,000, Bruce Wood as trustee of the Bruce G. Wood Revocable Trust, warehouse or distribution terminal, 5800 Houchin St. and additional vacant land, 5175769. Pro-Build Real Estate Holdings LLC sold to SWF Development Group LLC, $1,233,682, Previous Price: $4,160,000, February 2008, vacant industrial, 15900 Old 41, Naples, 5175315. PNC Bank National Association sold to Halperns’ Steak and Seafood Co. LLC, $1,224,000, Previous Price: $301,300, April 2004, other, food processing or candy factories, 0.95 acres, 3565 Plover Ave. in White Lake Corporate Park, 5174229. HILLSBOROUGH COUNTY Main Street Outparcel II sold to Tampa

BY SEAN ROTH | RESEARCH EDITOR

Smart LLC, $3,800,000, in SEC 7-28S17E, 2015366499. Tampa 301 Ltd. sold to BCDJD Riverview LLC, $2,856,000, Mortgage: $9,572,886, USAmeriBank, in SEC 32-30S20E, 2015374355. Ring Power Corp. sold to McBerry Investments LLC, $2,100,000, Mortgage: $1,900,000, Investment Property Exchange Services Inc., Previous Price: $1,303,000, January 1991, warehouse, 1401 N. 301 Highway, Tampa, 2015369771. Terrace Professional Center I LLC sold to RMC USF MED LLC, $1,712,500, Mortgage: $1,260,000, USAmeriBank, Previous Price: $23,000, February 1980, medical office building, 5210 E. Fowler Ave., Temple Terrace, 2015371416. LEE COUNTY Colico LLC sold to FGCU-Reef LLC, $4,700,000, Previous Price: $4,368,000, September 2004, acreage, 23.38 acres, 19655 Three Oaks Parkway, Fort Myers, 2015000208860. 14702 Tarmac Court LLC sold to Vehicle Fortress LLC, $3,850,000, Mortgage: $2,000,000, First American Bank, lot Q-2 Southwest International Commerce Park and a large number of units of Southwest Executive Storage condominium, 2015000206865. Frank Dewane as bishop of the Diocese of Venice sold to D.R. Horton Inc., $2,000,000, all of block 5027A Cape Coral Subdivision, unit 72, 2015000206378. MANATEE COUNTY Florida Investing 10 LLC sold to Holston Apartments Inc., $1,642,289,

Previous Price: $755,000, February 2007, used car lot, 3808 and 3900 W. 14th St., Bradenton, 02588-0200.

store, 7.43 acres, 4275 N. U.S. Highway 98 and community shopping center, 8.55 acres, 4241 N. U.S. Highway 98, Lakeland, 9633-1215.

Doran Legacy Holdings LLC sold to Plaza Paradiso LLC, $1,35,000, Mortgage: $1,147,500, Manga Bank, a division of Pinnacle Bank, multi-unit store, 5602, 5604, 5606, 5608, 5610 and 5612 W. 14th St., Bradenton, 02587-6879.

Slate Berry Town Holdings LLC sold to Berry Station LLC, $13,100,000, Previous Price: $13,546,000, February 2014, community shopping center, 7.1 acres, 2432 Sand Mine Road and neighborhood plaza, 2.8 acres, a portion of Jacks Road west of Ambersweet Way, Davenport, 9634237.

PASCO COUNTY SF Zephyr Commons Outparcels LP sold to Zephyr Wells Pooh LLC, $3,190,000, financial institutions, 7780 Gall Blvd., Zephyrhills, 9259-3105.

Grovelake SC Co. Ltd. sold to MF Grove Park Owner LLC, $11,400,000, Mortgage: $7,800,000, BB&T Real Estate Funding LLC, Previous Price: $2,083,400, October 1985 and $1,894,000, December 1985, community shopping center, 12.4 acres, 1617 U.S. Highway 98 S. and fast food or drive in, 1405 U.S. Highway 98 S., Lakeland, 9631-578.

Blue Water Equity LLC sold to Lake Bambi MHP RV LLC, $1,900,000, Mortgage: $1,365,000, C-III Commercial Mortgage LLC, Previous Price: $705,000, April 2013, rental mobile home or RV park, 6105 Land O Lakes Blvd., Land O Lakes (various other addresses), 9258-1782.

SARASOTA COUNTY SF Jacaranda Commons LP sold to Venice Memory Care LLC, $1,787,500, Mortgage: $9,883,616, Whitney Bank, Previous Price: $15,932,800, June 2011 (includes additional land) general commercial, 2321 E. Venice Ave., Venice, 2015119643.

PINELLAS COUNTY CJUF III 4th Avenue LLC sold to NRP St Petes LLC (26.491% interest) and SP St. Petes LLC (7.211%), $10,437,600, Previous Price: $6,000,000, December 2012, apartments, 430 Third Ave. S., St. Petersburg, 19024-2026.

Next One Homes LLC sold to Crist Holdings LLC, $1,415,750, Previous Price: $600,000, July 2007, residential multifamily, a portion of Solitude Lane, Sarasota, 2015119782.

iStar Bowling Centers II LP sold to BH Clearwater LLC, $1,600,000, Mortgage: $3,000,000, Florida Community Bank NA, Previous Price: $766,100, March 2004, bowling alley, pool hall, enclosed arena, skating rink or gymnasium, 1850 N. Hercules Ave., 18926-0649.

Marcom Sarasota Inc. sold to Walt Eppard, $1,100,000, Previous Price: $100,000, June 1998, light industrial and warehousing, 1777 Northgate Blvd., Sarasota, 2015118894.

POLK COUNTY Agree Limited Partnership sold to ARC NLLKLFL001, $13,200,000, Previous Price: $11,871,100, April 1994, department

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OCTOBER 9 – OCTOBER 15, 2015 | BUSINESS OBSERVER

corporatereport |

BY SEAN ROTH | RESEARCH EDITOR

Algenol, Chinese firm partner to bring ethanol technology to region

Algenol CEO and founder PAUL WOODS and WANG SUWEI sign an agreement in Seattle. Fort Myers-based Algenol is working with South China’s Fujian Zhongyuan New Energy Co. Ltd. to develop projects throughout Southern China. The companies signed an agreement that creates a partnership for what they describe as a joint exploration project. The companies will look for opportunities in China for Algenol’s directto-ethanol technology process, which uses industrial carbon dioxide emissions from power plants as a feedstock for proprietary algae to produce fuels. Fujian Zhongyuan New Energy Co. was founded in 2007.

Strategic Insurance Services owner named Young Gun

F-JA

Douglas Levi, principal agent and owner of Clearwater-based Strategic Insurance Services, was recently highlighted in Insurance Business Heroes-TheObserver_5x8.pdf America, a national1 insurance maga-

zine. Levi, 35, is one of the magazine’s 2015 “Young Guns,” a collection of 42 top professionals 35 years old and younger. Levi was picked because his 12-person firm recorded double-digit revenue and client growth year-overyear for the past five years. Strategic Insurance Services has more than $5.7 million in total premiums and more than 2,900 clients.

SB Tactical goes straight to consumer, expands lines

BusinessObserverFL.com

calendar

events

OCTOBER 7

OCTOBER 13

GOODWILL AMBASSADORS: Goodwill Manasota will honor the late Rick Fawley, with Fawley|Bryant Architecture, at an awards dinner. The nonprofit will also honor Phil Mancini and Michael Klauber, co-proprietors of Michael’s On East; Bradenton Area Economic Development Corp. President and CEO Sharon Hillstrom; and State Rep. Greg Steube, R-Sarasota. The dinner will take place at Michael’s On East, 1212 East Ave. S., Sarasota. Cost is $150 per person. Purchase tickets at ExperienceGoodwill.org.

BANK CHIEF: Alex Sanchez, president and CEO of the Florida Bankers Association, will discuss the impact of federal financial regulations at a meeting of the Real Estate Investment Society. The luncheon will start at 11:45 a.m. at the Pelican Preserve Clubhouse on Treeline Avenue at Colonial Boulevard in Fort Myers. Cost is $30 for members, $40 for others. Register by Oct. 7 at reis-swfl.org.

OCTOBER 8

SB Tactical, a St. Petersburg-based designer and manufacturer of accessories for pistols, now offers its firearm accessories directly to consumers through a new website, sb-tactical. com. The company previously only distributed its products through partnerships with Sig Sauer for AR pistols and Century Arms for AK pistols. The company also announced it plans to expand its line of firearm stabilizing braces from just the Sig Sauer 9/3/15 PM SB156:32 to support a number of other firearms from other manufacturers.

PR UNIVERSITY: Florida Public Relations Association President Roger Pynn will be among the speakers at the association’s public relations university event from 8:30 a.m. to 4 p.m. at Florida SouthWestern State College, 8099 College Parkway, Fort Myers. Cost is $65 for members and $80 for others. Register at fpraswfl. org. FREIGHT SUMMIT: State and local transportation officials will meet to discuss freight mobility and trade. The event will take place from 1 p.m. to 4:30 p.m. at the Lee County Port Authority Training and Conference Center, 15924 Air Cargo Lane, Fort Myers. For more information, contact Erin Kersh at 954-331-6120 or email ekersh@camsvs.com.

OCTOBER 14 MEET VINIK: Tampa Bay Lightning Owner Jeff Vinik will speak at a meeting of The Argus Foundation. The event begins at 5 p.m. at the Hyatt Regency, 1000 Boulevard of the Arts, Sarasota. Cost is $65 for members and $75 for guests. For more information, visit argusfoundation.org/events.

OCTOBER 15 ENTREPRENEUR CELEBRATION: The Technology and Entrepreneurship Center’s TEC Garage will celebrate its one-year anniversary from 5 p.m. to 6:30 p.m. at 244 Second Avenue N., St. Petersburg. Nearly two-dozen companies located there will make presentations. There is no cost. For more information and to RSVP, visit tecgarage.org or call 727547-7340.

CMY

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22 out of the office |

BUSINESS OBSERVER | OCTOBER 9 â&#x20AC;&#x201C; OCTOBER 15, 2015

BusinessObserverFL.com

PHOTOS BY LORI SAX | CONTRIBUTOR

Exporting Knowledge Manufacturers and others from related fields learn the ins and outs of exporting.

DAN MILLER with Sun Hydraulics; SCOTT RIMMER with Sperry Van Ness and ERICK HARE with Sun Hydraulics.

The Sarasota-Manatee Manufacturers Association held its monthly dinner Sept. 16 at the Holiday Inn in Lakewood Ranch. The guest speaker was Charles Steilen, who talked about how companies can improve exporting.

PETER STRAW with SAMA and Charles Steilen, an international marketing consultant.

LIZ FOELLER with AssenTerra and LAWRENCE LONSON with Keller Williams.

SAMA Board Member DANIEL MALLON and SUZANNE DAIGLE with Nufocus Strategic Group.

MARTHA MEYERS with Manatee Technical College and ANTHONY GAGLIANO with CareerSourceSuncoast.

MICHAEL HAVEY with Teak Decking Systems and BAYNE BEECHER with PGT.

IVAN GOULD and TERRY EASTMAN with Coldwell Banker Commercial.

1/3 of our readers work in commercial real estate

PASCO HILLSBOROUGH POLK PINELLAS MANATEE SARASOTA CHARLOTTE

Commercial Real Estate Top trends, transactions and dealmakers

Read it: October 23, 2015 |Advertising Reservation Deadline: October 16, 2015

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A Better View of Business

BusinessObserverFL.com

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For advertising information and opportunties, contact Donna Condon at 941.366.3468 or dcondon@yourobserver.com.

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OCTOBER 9 â&#x20AC;&#x201C; OCTOBER 15, 2015 | BUSINESS OBSERVER

BusinessObserverFL.com

TOP 10 BEST KEPT SECRETS OF A VALUED LEGAL PARTNER

FUTURE

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BusinessObserverFL.com

BUSINESS OBSERVER | OCTOBER 9 – OCTOBER 15, 2015

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