N OV E M B E R 1 - N OV E M B E R 7, 2013 | T H R E E D O LL A R S
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Sandra Kauanui and Angelo Biasi | Florida Gulf Coast University and MassiveU ENTREPRENEURS
SERVICES
INVENTION
Stop Rubbernecking
Starting Again
Hammer it Out
Tired of getting caught in traffic jams caused by curious drivers, a former Sysco CEO invented a solution. So far, law enforcement loves it. PAGE 7
After selling a $65 million company to Xerox earlier this year, two executives work to build an IT services firm capable of helping clients do it all. PAGE 8
TECHNOLOGY
TECHNOLOGY
Mobile Mapping
Gamer Nation
Geofeedia maps social media posts to bring together information in a central place. The uses abound. PAGE 8
In many parts of the world, shelter can be a complex challenge. Frank Schooley’s invention simplifies it. PAGE 9
MANAGEMENT
How Agile Are You?
The most effective leaders take time to analyze their businesses, then have the ability to change course quickly when needed. PAGE 15
Audubon Village apartments sell for $41.96 million. 16 JEBCO buys property near proposed Sarasota hotel site. 17 New York investors buy Naples’ Uptown Center for $11.2 million. 18
12 Inventors’ Sketchbook: Innovation on the Gulf Coast. PAGE
116578
DON’T MISS
The video game community holds a world of opportunity for those who can tap it. Nerdbet plans on doing just that. PAGE 9
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BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
Vol. XVII, No. 43
invites you to hear A DIVISION OF THE OBSERVER MEDIA GROUP
John Ratey, MD
BusinessObserverFL.com The Business Observer, formerly the Gulf Coast Business Review, is Southwest Florida’s newspaper for business leaders. With offices in Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Charlotte, Lee and Collier counties, the Business Observer is the only weekly business newspaper that provides business leaders with a regional perspective. The Business Observer’s mission is to deliver relevant news and information on Southwest Florida’s leading and growing companies, up-and-coming entrepreneurs and the important economic, industry and government trends affecting business. The Business Observer is also the leading publisher of public notices on the Gulf Coast of Florida.
Professor of Psychiatry, Harvard Medical School How Exercise Optimizes Brain Function and Performance
Editor and Publisher / Matt Walsh, mwalsh@BusinessObserverFL.com Managing Editor / Kat Hughes, khughes@BusinessObserverFL.com Deputy Managing Editor / Mark Gordon mgordon@BusinessObserverFL.com Editor-Lee/Collier / Jean Gruss jgruss@BusinessObserverFL.com Research Editor / Sean Roth sroth@BusinessObserverFL.com Web Editor / Amanda Heisey aheisey@BusinessObserverFL.com Editorial Design / Nicole Thompson nthompson@yourobserver.com
John Ratey, MD, has established himself as one of the world’s foremost authorities on the brain-fitness connection. He has been featured on ABC, CBS, NBC, PBS and NPR, as well as in The New York Times, Newsweek, The Washington Post, US News and World Report, Men’s Health, and other national publications. A highly sought after speaker, he has embarked on a world-wide mission to re-engineer schools, corporations, and individual lifestyle practices by incorporating exercise to achieve peak performance and optimum mental health.
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“The road is cleared,” said Galt. “We are going back to the world.” He raised his hand and over the desolate earth he traced in space the sign of the dollar. Ayn Rand, Atlas Shrugged 106706
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NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
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CoffeeTalk
3
Logistical shuffle in CEO suite Eric Baird, the Business Observer’s 2009 Entrepreneur of the Year, has taken a less active role in day-to-day operations of the fast-growing package forwarding company he founded, MyUS.com. Baird will retain a seat on the firm’s board of directors, says an official at the company, which reported $65 million in 2012 sales. That official, Sandy Smith with Ponte Vedra Beach-based Logisticap Partners, which assisted MyUS. com on a private equity deal last year, adds that Baird was “instrumental” in hiring the CEO who replaced him. That CEO is Sunil Bhatt, who previously held executive sales and marketing positions with Expedia and Hotels.com, among other firms. “We all have a great deal of respect for everything Eric has done,” Smith tells Coffee Talk. “Eric has chosen to not be there on a day-to-day basis. He sold part of the company, but he’s still involved in it. He’s still a very large investor.” Smith says Baird also wanted to step back following the death of his mother, Gail Baird, who died March 25. Eric Baird didn’t return several messages for comment on his Facebook page or through text messages. Baird left the CEO role, Smith says, about two months ago. His personal Facebook page now lists “trying retirement” under work. Baird, 44, leaves a flourishing day-today business for Bhatt, at least in terms of sales. The firm, which Baird founded in 1997 in a 700-square-foot office in a rundown strip mall, sells post office boxes to Americans living overseas. Baird, in a 2009 Business Observer story, says the business is like a Mail Boxes Etc., only one that ships to overseas customers who can’t otherwise get certain American products and goods.
ERIC BAIRD
FILE PHOTO
The simple idea spawned a business, now with 140 employees, that grew 1,200% over the last decade, from $5 million in 2004 revenues to $65 million last year. The business and success also attracted private equity firms. One of those, West Palm Beach-based Palm Beach Capital, made a “substantial investment” in MyUS.com in September 2012, according to a press release. Smith, who says her firm helped connect Palm Beach Capital with Baird, declined to say who the majority owner of MyUS.com is. She says the private equity firm’s stake is large, and, like Baird, that firm helped find the new CEO. One key in hiring Bhatt, adds Smith, is his e-commerce experience complements the firm’s logistics knowledge. “We felt what we needed is e-commerce experience,” says Smith. “And that’s what Sunil brings to the table.”
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Hamman has inside track Brian Hamman now has the inside track on winning the Lee County commission seat vacated by Tammy Hall when elections are held in November 2014. Florida Gov. Rick Scott recently appointed Hamman, 32, to the Lee County Commission after Hall resigned in September because she agreed to plead guilty to a count of wire fraud for embezzling money from
her campaign account. Hamman’s term will last until next November, when Hall’s term would have ended. Before the governor appointed him, Hamman already was outpacing rivals on fundraising, accumulating more than $12,000 in campaign contributions so far. Now he’s got the incumbent’s edge.
See COFFEE TALK page 5
SERVE UP DESIGN AT RINGLING “Jonathan and Simon’s talks will get at the heart of what is most important for businesses today: creating an emotional relationship with their customers that makes it easy for them to fall in love with your brand,” Ringling President Larry Thompson says in a release. “Having empathy for your customers, and thinking through what they want most from your service, is something that needs to be woven into the DNA of entire organizations, not just marketing departments. Design thinking enables this cultural shift, and these gentlemen live it and breathe it every day. The lessons they will impart will be invaluable for our attendees and their businesses.” Other scheduled keynote speakers for the conference include Luc Mayrand, with Walt Disney Imagineering, and Chris Risdon, design director at Austin, Texas-based Adaptive Path, a user experience firm. Visit Florida President and CEO Will Seccombe is also scheduled to speak, on Friday, Nov. 8, about the state’s tourism figures.
6301 Porter Rd. Unit 3, Sarasota, FL 34240 www.digitalhomescorp.com 941-870-4418 State Lic ES12000992 120470
The International Service Design + Tourism Conference, which launched last year in Austria, will make its U.S. debut in Sarasota Nov. 7. The conference, at the Ringling College of Art and Design from Nov. 7-9, includes speakers from 15 countries who will focus on brand design topics, conference spokeswoman Michelle Bauer says. “We are in the age of the empowered customer,” Bauer tells Coffee Talk. “It is no longer OK to develop the near-perfect customer experience.” The road to that perfect experience includes keynote presentations from two global leaders in service design: Simon Bradley, vice president of marketing, North America, for Virgin Atlantic, and Hyatt Hotels Corp. Vice President of Global Innovation Jonathan Frolich. Bradley will talk about how Virgin designed a worldclass air travel experience, while Frolich will talk about how to design new experiences in hospitality. The presentations are scheduled for 8:30 to 9:30 a.m., Saturday, Nov. 9.
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BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
topstories from BusinessObserverFL.com Pegasus TransTech names new CEO Pegasus TransTech has promoted Frank Adelman to president and CEO. Adelman assumes this position from Bob Helms, who is retiring. Adelman started with Pegasus TransTech in 2004. He is credited with leading the company’s efforts to increase market share and drive revenue growth for the company’s “shipment-to-cash” solutions used by transportation companies. Prior to joining Pegasus, Adelman spent nine years at Comdata Corp., a $350 million provider of payment and information services to the transportation industry.
Mosaic to buy three facilities for $1.4B The Mosaic Co. has agreed to acquire the phosphate business of CF Industries Inc. for $1.2 billion in cash plus another $200 million to fund CF Industries’ retirement obligations. Mosaic is acquiring a phosphate manufacturing facility in Plant City, ammonia terminal and finished product ware-
quote of theweek
“”
It’s easy to get passionate about this because we are helping save people’s lives. Seth Freedman | Cofounder, IntelligentM Wristband SEE PAGE 12
what do you think?
house facilities in Tampa and the 22,000-acre South Pasture phosphate mine and beneficiation plant in Hardee County. Mosaic and CF Industries also signed agreements for CF Industries to provide Mosaic with up to 1.1 million tons per year of ammonia. The transaction is expected to close in the first half of 2014. SARASOTA-MANATEE
Air Canada bids adieu to first class Canadians jetting down to the Sarasota-Bradenton area this travel season on Air Canada will lose a class, but gain about 20 seats. That’s because nonstop flights from Toronto to Sarasota-Bradenton International Airport will be on Air Canada rouge, the airline’s new brand that eliminates first class. In its place on the airline’s Airbus A319 jets will be another 20 seats. Air Canada flies one nonstop flight a day into SRQ in the winter and spring.
Tech firm receives award for hiring Star2Star Communications,
a software development firm that provides Internet communications for businesses, received a Hire Power Award from Inc. Magazine. The award recognizes the top private business job creators in the country during the last 18 months. Sarasotabased Star2Star created 62 jobs during that time, for a total payroll of 151 employees. That tally was good for fourth in the telecommunications category and 19th in Florida. CHARLOTTE-LEE-COLLIER
Radiation firm makes $125M buy Radiation Therapy Services Holdings acquired rival OnCure Holdings for $125 million, boosting the company’s treatment centers to a total of 165 locations in the U.S. and Latin America. Radiation Therapy Services will pay $42.5 million in cash and $82.5 million in assumed debt for OnCure, which includes 33 treatment centers and 11 physician groups. OnCure Holding, based in Englewood, Colo., filed for Chapter 11 bankruptcy protection in June because of declining insurance reimburse-
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ments. The bankruptcy court recently approved the sale of the company’s assets to Radiation Therapy Services earlier this month.
Airlines throttle back on Fort Myers Air traffic dropped at Southwest Florida International Airport in Fort Myers in September, a traditionally slow month for tourism in the region. Takeoffs and landings at the Fort Myers airport dropped 4.7% and 338,175 passengers passed through the airport, a 4.6% decline. Despite September’s decline, passenger traffic at Southwest Florida International Airport is up 4.6% for the year with nearly 5.8 million passengers passing through the airport compared with the same nine months of 2012. More than 7.3 million passengers passed through the airport last year, making it one of the top 50 U.S. airports for passenger traffic. The top passenger airlines in Fort Myers ranked by passenger count are Delta, AirTran, JetBlue, USAirways and American.
Do you approve of Hillsborough County giving incentives to Amazon?
58.8% Yes 35.3% Yes 5.9% Not Sure
124133
TAMPA BAY
NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
Hamman, a CenturyLink executive who grew up in Lee County, is seen as a swing vote for a more pro-business commission that will keep govern-
ment expenditures in check. He’ll join two other business-friendly commissioners on the board, including Larry Kiker and Cecil Pendergrass.
Reitmann inducted into Hall of Fame Michael Reitmann fought Hall of Fame ceremony, Richtirelessly for homebuilders for ard Durling of Marvin Develmore than 37 years, so it should opment says Reitmann was come as no surprise that he instrumental in persuading was inducted into the Florida Lee County commissioners to Housing Hall of Fame at a cercut taxes on new construction emony Oct. 19 in Tampa. by 80% earlier this year. Reitmann most recently In addition, Reitmann was served as the executive vice responsible for launching president of the Lee BuildBuilders Care, a nonprofit oring Industry Association, a ganization that has provided REITMANN post he held for 27 years until more than $2 million in home he stepped down earlier this year. A repairs for needy residents. “Profesfluent German speaker because he sionally he led one of the most sucwas raised there as a child, Reitmann cessful local builders associations is currently director of international in the country, winning numerous marketing for Marvin Development. battles for builders and homeowners In presenting Reitmann to the alike,� Durling said in his remarks to Florida Home Builders Association’s the builders.
Check this: Burger biz hits Walmart Tampa-based fast-food chain Checkers Drive-In Restaurants, known for double drive-thru locations with no interior seats, is expanding without a core piece of its business model, not to mention its name. That would be the car. The chain, in fact, recently signed a deal with Twin Towers Trading Site Management to open and manage three Checkers locations, sans drivethru, in Walmarts. Two of those locations, to open later this month, will be in North Carolina, the firm says. The third, scheduled for early 2014, will be in Mississippi. Checkers, moreover, recently opened other locations in Super Walmarts, one in Oldsmar and another in Haymarket, Va. Those locations are separate from the Twin Towers deal, Checkers Vice President of Franchise Development Jennifer Durham says. “It’s an exciting growth opportunity because there’s a great amount of similarity between the customers,� Durham tells Coffee Talk. “(Walmart’s) consumers and ours are both hardworking and value oriented.� Twin Towers, according to a release, has brought food services to 1,850 Walmart stores nationwide since 2005. The company, with a main office in New Jersey and a Florida headquarters in Manatee County, has worked with Subway, Sonic and Papa John’s,
among other national brands. “The wonderful thing about partnering with Walmart,� Twin Towers Vice President George Leviton says in a release, “is that you’re guaranteed pedestrian traffic of 65,000 and above.� The firm is so confident in the Checkers-Walmart marriage that it retained the rights to the three locations — it typically leases the space to franchisees. Leviton says Twin Towers wants “to demonstrate to future franchisees around the country that opening Checkers inside Walmart is a profitable and exciting opportunity.� Durham says Checkers, with nearly 800 locations nationwide, and more than 140 in Florida, seeks to grow its franchise base beyond the Walmart deal with Twin Towers. Checkers, owned by New York-based Wellspring Capital, which bought it in 2006 for about $188 million in a public-to-private deal, is offering some incentives to prospective franchisees, including a royalty reduction program. Checkers, adds Durham, also provides perspective franchisees with a refined clarity of purpose — an important element in the competitive fastfood industry. That mission centers on value-based food and drinks. “We really understand our guests,� Durham says. “A healthy focus is on if you only have $5 in your pocket, you won’t leave here unsatisfied.�
Correction A commercial real estate brief in the Oct. 11 issue on the sale of Preserve at
Deer Park misspelled Cortland Partners, the buyer’s name.
CANCER LAB WILL DOUBLE HQ SIZE NeoGenomics isn’t slowing down despite the threat of drastically lower government reimbursements for the cancer tests it performs. The firm plans to more than double the size of its Fort Myers headquarters, CEO Douglas VanOort told analysts during a recent conference call to discuss the company’s quarterly earnings. “After the successful expansion and move of our laboratory facility in Irvine, [Calif.] last year, we are now engaged in an expansion of our largest laboratory in Fort Myers,� says VanOort, in a transcript posted on SeekingAlpha.com. “We are making significant changes in workflow and expanding
our capacity at the same time. With this expansion, we now have 75,000 square feet of laboratory and administrative space, which we expect to be fully operational in the first quarter of 2014.� In its most recent annual report in February, NeoGenomics says its Fort Myers facility encompassed 33,700 square feet. For comparison, the size of a football field is 57,600 square feet. NeoGenomics has boosted the number of oncology tests it performs, hired sales staff and implemented measures to improve the efficiency of its operations. The company recently reported revenues rose 19% in the third quarter to $16.9 million and it swung to a profit of $900,000.
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BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
BY THE NUMBERS
economicsnapshot
4% Consumer Durables The state’s year-over-year percentage increase in consumer durables in July.
$2.5 billion (Florida statewide) 2.3 2.1
11
1.9
The number of areas out of 22 statewide that had doubledigit percentage increases in consumber durables in July compared with July 2012.
1.5
1.7
2 The Naples area’s rank in the state in year-over-year consumer durable gains, with a 27.3% increase. Palm Coast led the state with a 31.9% increase.
July 2012
Aug. ’12
Sept. ’12
Oct. ’12
Nov. ’12
Dec. ’12
WHAT THE DATA SHOW Taxable sales in the consumer durables category include appliances, furniture, home electronics, boats, aircraft and hardware. The latest data are for July. WHAT IT MEANS Consumers in some areas of the Gulf Coast spent significantly more on appliances, furniture and other consumer durables in July on an annual percentage-change basis. Naples posted the second-biggest jump in this category of taxable sales in the state, far exceeding the 4% increase statewide. The Tampa Bay area and Punta Gorda also posted big gains in this category. Only Cape Coral-Fort Myers showed a smaller increase. FORECAST This category of taxable sales tracks residential construction closely because people have to furnish their new homes. The forecast is positive because builders are rushing to meet increased demand for new homes in certain markets such as Naples. However, it’s not clear whether the recent government shutdown will have an impact on purchases of big-ticket items. A recent survey of the state’s consumers by the University of Florida shows a drop in confidence.
Jan. ’13
Feb. ’13
Mar. ’13
Apr. ’13
May ’13
July ’13
June ’13
JULY CONSUMER DURABLES AREA
TampaSt. Petersburg
DURABLES ($ in millions)
$221.2 18.8%
SarasotaBradenton
$57 9.2% $11.7 19.4%
Punta Gorda Cape CoralFort Myers
% ANNUAL CHANGE
$50.1 2.6% $39.4 27.3%
Naples
Source: Florida Legislature Office of Economic & Demographic Research
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NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
TECHNOLOGY
7
BusinessObserverFL.com
BY MARK GORDON | DEPUTY MANAGING EDITOR
MARK WEMPLE
CARL CANNOVA founded Stop Rubbernecking, a University Park-based company behind the SRN 1000, with his wife, TOMMIE CANNOVA. The product is a device law enforcement agencies can use to combat rubbernecking.
curtains UP
Former food service executive Carl Cannova, who once oversaw 750 employees, didn’t want to whittle away retirement on the golf course. So now he’s back in business. The stakes, again, are tense.
L
ots of people mutter some choice words under their breath when they get stuck in a rubbernecking traffic jam. Carl Cannova, who in his Corporate America life was one of the highest-ranking Sysco Corp. food services executives in Florida, was a fellow mutterer. But Cannova, former president and CEO of Palmetto-based Sysco Food Services-West Coast Florida, did something different with the gripes: He turned it into a business opportunity that he also hopes is a public service. “For years I’ve been in traffic jams,” says Cannova. “The traffic jams and then the accidents are caused by people going in the opposite direction who have to stop to see the gore.” Cannova’s answer is Stop Rubbernecking, a University Parkbased business he founded with his wife, Tommie Cannova. Its main product is the SRN 1000, a privacy barrier that’s quickly deployed to block accident scenes and other restricted areas from public views. The patent-pending product is essentially an oversized weighted curtain — one that’s held with three steel tri-
“”
pods and spreads 6 feet high and 12 feet wide. “This serves an important purpose,” says Cannova. He means the product, but he could also be talking about his post-Sysco career. Cannova retired in 2008 after 13 years at the helm of the Sysco unit, one of three in Florida for the $44 billion Houston-based food and beverage behemoth. Cannova oversaw a major growth expansion at the facility, which had customers from Naples to north of Tampa. His unit grew from 300 employees in 1996 to 750 by 2007. The division also moved up in Sysco’s annual companywide sales rankings, from 46 out of 47 in 1996 to third place by 2006, behind only Boston and Los Angeles. But Cannova, 70, quickly grew tired of golf in retirement. Stop Rubbernecking, which the Cannovas founded in 2011 and have already backed with $350,000 from savings, has instead become his retirement passion. It’s also become his learning ground in the transition from CEO to do-itall entrepreneur. “I had some wonderful people at Sysco and they helped me im-
mensely,” says Cannova. “But when you go into business for yourself, you’re it. This has been an expensive proposition, to learn what I should be doing.” One specific mistake Cannova points to, for instance, is he’s lost time, and money, by attending ineffective trade shows. Some shows have cost the firm close to $10,000, with setup and travel. Another mistake was underestimating how long it took to get the product from idea to market. A hitch in one part of the poles, for example, delayed the launch from August 2012 to this past January. He came up with the idea for the product in 2010, so delays, especially for an executive used to real-time action, were agony. “Even when we thought we were all done,” says Cannova, “we weren’t.” Still, Cannova says the final product, designed by Sarasotabased RoBrady, was worth the wait. The SRN 1000 has been on the market for about eight months, and interest has grown steadily. The company targets police depa rtments, government agencies, airport security and even coroner’s departments
for sales. “This is a superior product to protect crime scenes,” Manatee County Sheriff Brad Steube says in a release about the product launch. “The system is durable, easy to travel with and set up and it is a crucial tool to provide privacy for victims and officers at several types of traumatic events.” The firm has sold about 100 SRN 1000s, at a cost of a little less than $2,000 apiece. Clients include 11 law enforcement agencies in Florida. It also has customers in Idaho, Pennsylvania, Texas and Wisconsin, and is working on deals with clients in Hawaii, Bermuda and even London. Cannova also plans to attend large trade shows in Texas later this year, where he hopes to meet more potential clients. “The best way to sell it,” he says, “is to have people see it, touch it and feel it.” Follow Mark Gordon on Twitter @markigordon
VIDEO To see the SRN 100 in action, visit BusinessObserverFL.com.
When you go into business for yourself, you’re it. This has been an expensive proposition, to learn what I should be doing. Carl Cannova | Stop Rubbernecking
8 TECHNOLOGY
BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
Feed the map S ome of the first news reports of the Boston Marathon bombing didn’t come from any traditional news source. Instead, they popped up on Twitter and Instagram, two popular social media services where people can post messages, photos and videos almost instantaneously from their mobile phones. If you’re a news reporter or a law enforcement officer, what better way to verify an event than by people who are tweeting and photographing from the scene? Now, a Naples company called Geofeedia has figured out a way to map the tweets, photos and videos that people post from their mobile devices within seconds. Scott Mitchell, the chief technology officer of Geofeedia, illustrates his point using a Web-based application he created. Using his mouse and cursor, he highlights an area around Copley Square in Boston and selects the hour the bombs went off at the finish line of the marathon April 15. Within seconds, the screen is plastered with messages, photos and videos of the tragedy, more than any news channel could deliver. Mitchell, with Chicago-based business partners Phil Harris, CEO, and Mike Mulroy, chief operating officer, launched the business in July 2011 when Twitter, Instagram and other social media services started sharing the location of users who agree to be tagged geographically. Geofeedia has filed for 11 patent applications over the last 18 months, and five have been approved. As the chief technology officer, Mitchell, 39, is a software engineer whose specialty is computer mapping. So far, Geo-
BY JEAN GRUSS | EDITOR/LEE-COLLIER Geofeedia maps social media posts so journalists, emergency officials and companies can track what’s being said.
NANCY DENIKE
SCOTT MITCHELL, chief technology officer of Geofeedia, says it can map people’s tweets. feedia raised $1.2 million from investors to fuel its growth. “We bootstrapped the company for the first year,” says Mitchell, who formerly worked for INGage Networks in Naples. “We only started selling in Q1 of this year.” Already, Geofeedia has 40 customers who pay about $150 per user monthly
TECHNOLOGY
Sweet Symphony R ick Lott and Tom Frederick won the entrepreneurial equivalent of the Super Bowl earlier this year when they sold Zeno Office Solutions, the office equipment supply firm they founded in 1996. Document management giant Xerox bought Zeno, with $65 million in annual sales, for an undisclosed sum in April. The firm still exists today, now under the name Zeno Office Solutions, a Xerox company. It has about 280 employees and nine offices across Florida, from its Tampa headquarters to Fort Myers, Sarasota, Jacksonville and Orlando locations. Longtime business partners Lott and Frederick, however, didn’t spend too much time on the celebration. In fact, their next go-big mission is already underway: to attack another businessto-business service-oriented industry, IT support. “We know how to deliver a very high-end service,” says Lott, who is also a Plant City commissioner and former mayor of the east Hillsborough County city. “Now we want to do it in the IT world.” They aim to do that through Tampabased Zymphony Technology Services. The 10-year-old firm, previously Zeno Technology Services, and before that, Infinity Technology Solutions, is one of the larger managed IT services and cloud-computing firms in the region. Lott and Frederick acquired Infinity last year and turned it into a Zeno division. Terry Hedden, a Business Observer 40 under 40 winner in 2012, founded Infinity, but left about a year after the sale. The firm now has around $5 million in annual sales, about 50 employees and offices in Tampa, Sarasota, Orlando and
to track posts from Twitter, Instagram, YouTube, Flickr and Picasa. Customers include the Associated Press and Detroit Crime Commission. For example, police in Detroit track gangs who communicate via social media, querying by location and keywords. “It’s almost a code
VIDEO View a video demo of how Geofeedia works here: http://youtu.be/Jad7QaRbNco
BY MARK GORDON | DEPUTY MANAGING EDITOR A pair of executives bring their history of business success to an IT services firm. Their goal is to help clients do it all.
MARK WEMPLE
RICK LOTT, left, runs Tampa-based Zymphony Technology Services with TOM FREDERICK. The firm has around $5 million in annual sales and about 50 employees, with offices in Tampa, Sarasota, Orlando and Atlanta. Atlanta. It has more than 350 clients. Zymphony, which recently formally announced its name change, from Zeno, hopes to grab an even bigger portion of market share by targeting two segments. One part is small businesses that don’t have an IT services provider. The other piece is companies that have a provider
that they talk online,” Mitchell says. During Hurricane Sandy last year, Geofeedia provided emergency officials complimentary access to its service so they could identify the worst hit locations based on messages, videos and photos people posted of the damage. Because of this, emergency officials were able to respond to the areas with the biggest needs. The range of uses for this technology could be broad, from medical personnel tracking a flu outbreak to companies promoting their products. For security reasons, Mitchell says Geofeedia vets clients before granting them access. For example, you can’t automatically sign up for the service on the company’s website. “We all have children, too,” he says. “Most of our customers find us through word of mouth.” Geofeedia uses Bing maps and covers the globe, so you can view tweets in the Middle East or in Asia. Of course, not everyone is on social media: A recent search in North Korea showed zero tweets. There are challenges ahead. For example, copycat companies have started touting similar services, and patent protection can only do so much. “You stay ahead of them with good customer service,” Mitchell says. Follow Jean Gruss on Twitter @JeanGruss
but could use a new or upgraded service. The sales pitch, regardless of segment, says Frederick, is to provide clients with a help desk that does more than fix an Internet outage or help transfer documents to the cloud. Frederick says the firm’s “expertise is in making complex technology easy and cost efficient.” That
goes from Microsoft Office 365 training to IT contracting. Zymphony also intends to differentiate itself in a competitive yet fragmented industry by expanding services. The firm now has a software development division that creates mobile applications for clients. It also expanded its creative services division, which works on social media and digital marketing for clients. Says Lott: “We want to look out for what our customers’ pain points are.” Lott and Frederick met in 1990 when both were executives at Danka Business Systems, once one of the largest office equipment firms in Florida. A fourth generation Plant City native, Lott began his career with Danka in 1980, when he was a copier tank cleaner. He worked his way up and at one point he ran mergers and acquisitions. Frederick, meanwhile, worked in sales at Harris 3M before Danka. The duo left Danka in 1996 to form Zeno Office Solutions. They started with a $2 million acquisition of another firm and grew with acquisitions and signing up customers. The firm managed to double annual revenues four times, says Lott, to reach $65 million by 2013 — despite an inconsistent economy. “Each downturn,” says Lott, “was an obstacle and an opportunity.” The pair takes the same approach to Zymphony. It currently seeks companies to acquire, though it’s focused on doing more for current customers. “We want to dominate this market first,” says Frederick. “We want to be a competitive force in this industry.” Follow Mark Gordon on Twitter @markigordon
NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
TECHNOLOGY
BusinessObserverFL.com
9
BY TRACI MCMILLAN BEACH | CONTRIBUTING WRITER
Gambling gamers Former Raymond James IT wiz Landon Bass says he knows nothing about video games. That didn’t stop him from joining a company to build an online fantasy league for gamers.
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andon Bass was building out a large Sharepoint distribution site for Raymond James when a colleague from work approached him with an idea. Avid gamer Justin Twohig wanted to build a fantasy league platform for e-sports, or electronic sports. “I know nothing about video games. I don’t know the lingo. I know software architecture,” Bass says. But after hearing Twohig’s pitch and visiting a gamers’ meet-up, he decided to join Twohig and another Raymond James colleague, Eric Huang, to start building Nerdbet in April. Just like fantasy football, the trio hopes Nerdbet can become an information platform, with data covering e-sport statistics to answer questions such as: “What’s so and so’s record? How’s so and so doing? Who are the top three gamers in the U.S.?” Bass says. Although NerdBet is focused on betting, the company isn’t looking to take money from anyone. Participants bet coins, which can be exchanged for prizes such as Papa Johns gift cards; gaming technology such as keyboards and mice; and game money, or currency that can be used to buy better weapons or character upgrades in video games. The idea is to find sponsors that will gain advertising space by sponsoring the site and donating products. “Right now we’re an ad-driven model,” Bass says. According to Twohig, the site could tap into a community of millions of
online game watchers worldw ide. Last year a League of Legends gaming competition filled the Staples Center and attracted 20 million online viewers. Advertisers invest a lot of money in sponsoring professional gamers, who can earn six-figure salaries and are featured on regular television programming in Korea, Twohig says. The trio is a bit of a “motley crew,” according to Bass: “We are all three very different. We don’t dress alike, we don’t listen to the same music, but we also don’t step on each others’ toes.” Twohig is the market expert, according to Bass. “He knows what people want and he knows where people go.” Huang is good at asking “why,” and keeping Bass on track with the technical aspects, Bass says. With full-time jobs outside of Nerdbet, all three dedicate 15 to 20 hours a week to the startup. Recently they applied for Tampa Bay WaVE’s Accelerator Program, a resource they think will help them better determine scalability. At the end of September, the team decided to release a minimum viable product as a beta test to garner feedback from the community. In the first few weeks, they had more than 3,000 unique page views and 750 new members from around the world. Considering their only advertising was posting a few blurbs on a game-watch community subpage within Reddit, the response was larger than expected, Bass admits. Users provided feedback from Germa-
TECHNOLOGY
BRIAN TIETZ
FRANK SCHOOLEY shows off the furniture he makes with wooden pegs, which formed the basis of the easy-to-assemble shelters he’s selling.
Pegged together Frank Schooley created a shelter you can assemble with just a hammer and pegs. It could help solve the global housing crisis as population swells and provide shelters in disaster or war zones.
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ny, Korea, South America and Western Europe. Right now, “everything is very cheap for us,” Bass says. “Our time is our only bottleneck.” The three have spent just $300 on incorporating and $80 on a domain, in addition to their time on the project.
The biggest challenge will be building a team to complete data entry and finish development on the site, Twohig says. They plan to wait on pursuing financing until they can prove to investors that, with the official release in December, Nerdbet is capable of tens of thousands of unique page views.
BY JEAN GRUSS | EDITOR/LEE-COLLIER interior
hen a catastrophic earthquake hit Haiti in 2010, Frank Schooley got to work. Six months later, the longtime Lee County carpenter created a sturdy wood home that could be assembled in three hours using only a hammer and wooden pegs — no nails, screws or glue. Schooley was awarded a patent in February for his home, which he calls
MARK WEMPLE
JUSTIN TWOHIG, ERIC HUANG and LANDON BASS of Nerdbet hope to tap advertisers who want to reach the millions of people worldwide who follow video game competitions.
Shelter in a Day. At a global conference earlier this year in Washington, D.C., the Aid and International Development Forum awarded Schooley its “most innovative product” award. A few days later, Schooley displayed the shelter at the Pentagon, where high-ranking military officers considered it as a safer alternative to tents in hostile territory. “So many
g uys wa nt it f or a hu nti n g l o d g e ,” Schooley chuckles. T he shelt e r s , w h ic h start at $5,000 for a 12-by12-foot home, ex terior can be easily assembled in t h r e e hou r s using simple drawings that require no w r itten inst r uct ions. It ships on a pallet in pieces stacked 4 feet high. With a microfinance mortgage, Schooley estimated it might cost a family in a poor country as little as $1.50 a day. So far, Schooley has spent a lot of money and time on the project. Filing and obtaining the patent alone cost about $20,000. “I haven’t worked that hard to sell it,” says Schooley. The technology emerged from the economic downturn. Like many contractors, Schooley’s kitchen carpentry company, Tropical Kitchens, suffered when real estate crashed. He owned a $100,000 computerized machine that quickly cuts and drills holes, so he started tinkering with the cheapest material he could find, medium density fiberboard that’s made from recycled wood. Turns out, the fiberboard is so sturdy and cheap that it’s perfect for building a shelter. Most carpenters shun fiberboard because you can’t nail, glue or screw it. But Schooley figured out a system of holes and pegs that could hold furniture together. “Along the way I fell in love with the stuff,” Schooley says.
Schooley started making furniture such as chairs and tables from fiberboard and his peg system. He branded it Terrapeg, testing it in a restaurant near his home in Bokeelia called Little Lilly’s Island Deli. “I gave her a whole suite of my furniture, and it held up,” he says. W hen t he Ha iti ea rt hqua ke hit, Schooley decided the material and his peg system were strong enough to make a house. He built a prototype nearly three years ago, which still stands at the Unitarian Universalist Church of Fort Myers he attends. “It’s holding up great; it’s my beta test,” Schooley says. Schooley says he’s had ongoing discussions with investors and is considering licensing the product, among other options, to grow the company. “It depends on the size of the order,” says Schooley. He’s not too keen on building a manufacturing facility himself. “My role is really to come up with the next product,” he says. Besides, Tropical Kitchens is growing again and Schooley and his wife, Doreen, are moving their company in December to a new facility on Metro Parkway in Fort Myers that’s twice the size of his current one in Matlacha. “I have too much on my plate and I need to build a team,” he says. “It’s not just money,” Schooley emphasizes. He’s on a mission to help the global housing problems that accompany rapid population growth in less developed countries. “It’s important,” he says. Follow Jean Gruss on Twitter @JeanGruss
VIDEO Watch a 45-second video of a crew building a Shelter in a Day at youtu.be/CiJwU7lpaEc
10 TECHNOLOGY
BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
BY JEAN GRUSS | EDITOR/LEE-COLLIER
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ngelo Biasi was teach i ng a marketing class to adult learners at New York University when he decided to create a mobile app for his students so they could review that week’s lesson. The two-month class would meet online on Mondays for three hours. Biasi designed the app so students could check their phones at other times to review. “What are the top 10 things you want the students to remember?” he says. Turns out, this was NYU’s first course to have its own mobile app. “The light bulb went off in July 2012 when I filed for the patent,” Biasi says, and MassiveU was born. As the name of the Naples-based company implies, anyone in the world with a mobile device such as an iPhone or a tablet can download a course app from MassiveU. It’s the first distancelearning technology company that develops courses primarily with the mobile user in mind. Other similar services design courses for the desktop or laptop computer, not the mobile phone. “No one is approaching it with a mobile-first strategy like we are,” says Biasi. Because it has the potential to attract millions of users from all over globe via the Web, MassiveU has been lumped into the latest tech craze called MOOCs. The letters stand for massive open online courses, and it’s the next frontier in distance learning. Distance education was a $92 billion industry in 2012 and the mobile part of that totaled $9 billion. Biasi says the industry could generate $166 billion by 2015. But Biasi isn’t a fan of the funnysounding term, even though MassiveU might be considered the first mobile MOOC. That’s because the word implies that there is no cost and learners could earn degrees without paying professors. “This is not the Napster of education,” says Biasi, referring to the free music file-sharing program that disrupted the music recording industry before iTunes set the standard. Biasi declines to share his outlook for MassiveU’s revenue potential, but venture investors in Naples with the Tamiami Angel Fund determined it was enough of an opportunity to invest $370,000 recently in the company’s first round of capital raising. “We like the space and it was attractive to get in on the ground floor,” says Tim Cartwright, the fund’s chairman.
a class
APP
MAKING MONEY Most professors and universities aren’t in the business of giving their knowledge away for free. “I’m a little threatened by this free movement,” acknowledges Biasi, who owns a marketing company in his former home of White Plains, N.Y. When NYU asked Biasi to create a free app based on content from his class last year, he felt it was risky because he didn’t want to create a monster that might put him out of a job. After all, his students pay NYU $840 to take his marketing class. “It’s my content and I want to keep doing that,” he says. “I’m very sensitive not to canBRIAN TIETZ nibalize the paying course.” SANDRA KAUANUI, professor of management and director of the Institute for Entrepreneurship at Florida So Biasi pared down his course to Gulf Coast University, is working with ANGELO BIASI of MassiveU to design a learning app for her class. fit the mobile learner’s short attention span to increments of 10 and 30 minutes, and he got corporate sponsors including Sprint to underwrite the cost. He calls it the abridged Cliffs Notes of his class. “This was content I’d already produced,” says Biasi, who has lived in Naples since 2005. Biasi declines to say how much he earned from the effort that launched
Got 10 minutes to spare? MassiveU’s learning applications for mobile devices are for busy adults and young, tech-savvy students.
EXECUTIVE SUMMARY Company. MassiveU Industry. Technology Key. Learning apps for mobile devices must fit students’ lifestyles.
NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER in February, but he notes: “It was a good directed, time starved and device affluenough amount that I felt I was very well ent,” Biasi says. taken care of.” These are students like the ones in Bi“It was a nice little marriage,” Biasi asi’s marketing class at NYU, who might says. The cell phone company offered have 10 minutes waiting in the carpool the mobile marketing course free to its line for their children at school or 30 small-business customers and NYU got minutes on the train while commutleads for future prospective students. It ing home. MassiveU’s mobile learning was marketed as a “free gift of learning” apps are designed for that person so that from Sprint and NYU. “We just delivered course work can be completed in those over 200 leads to NYU,” Biasi says. kinds of tight time increments. But MassiveU can generate revenues The way he sees it, many MOOCs in other ways, too. For example, it charg- don’t tailor their coursework to that es universities $1,500 to $2,500 for an busy, time-constrained professional. app and it might take a percentage of the “Less than 7% of people who sign up for sales, which could range from 99 cents a MOOC actually complete one,” Biasi to $49.99. says. In many cases, proAnother target marfessors will use the app ket is the young student as a complementary in grade school. Most tool. For example, Sankids today have mobile dra Kauanui, profesdevices, and Biasi says sor of management at he’s working on a projFlorida Gulf Coast Uniect with Collier County versity, will be using a public schools under a MassiveU app for stu- Angelo Biasi | MassiveU “bring your own device” dents at the Institute to school program. for Entrepreneurship that she directs. A system of rewards is an important The app will give them a taste of what component of attracting students to moit might be like to start a business, and bile learning. For example, adult learnthey can follow up with a more in-depth ers might earn a badge from a univercourse later. sity each time they complete a mobile “What we’re doing is developing apps course. Such badges on a resume could to get people to think about a business give a job candidate an edge. For kids, model for starting a new business,” says completing an assignment on their Kauanui. Proceeds from the app might phone might earn them rewards in a go to help fund promising new busi- game. It’s what investors like Cartwright nesses created by students in the entre- dub the “gamification” of education. preneurship program. “For people who Cartwright says MassiveU satisfies are interested in going further, they can the criteria that many investors look build on that,” she says. for: a large market, a scalable business model and a passionate and competent ADULTS AND KIDS entrepreneur. “We’re looking for a real Biasi says the design of the learning problem and solution,” says Cartwright. apps must be tailored specifically for the With about half of the $750,000 he mobile platform. “I really do think we plans to raise in the first round of financhave to package learning content that is ing, Biasi says he’s ready to ramp up the accessible, convenient and engaging on company’s efforts. “Capital is going toa 3-inch screen,” he says. ward technology and hiring people so The ideal user is the adult learner, the we can scale as quickly as possible,” he professional who may have a job and says. “We’re in the right place at the right other obligations. “A lot of them are self time with this technology.”
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This is not the Napster of education.
BusinessObserverFL.com
calendar
of
11
events
NOVEMBER 4
ECONOMIC FUTURE: Ed Rendell, former governor of Pennsylvania, will be the keynote speaker at a summit on the region’s economic future. The event will run from 8:30 a.m. to 3 p.m. at the Tampa Port Authority, Cruise Terminal 3, 815 Channelside Drive, Tampa. For more information visit BuildingFloridasFuture.org.
NOVEMBER 5
ECONOMIC OUTLOOK: John Jung Jr., an economist and senior managing director at BB&T Capital Markets, will offer a business update at a trustee forum for The Greater Sarasota Chamber of Commerce. The event will run from 5:30 p.m. to 7:30 p.m. at The Francis Banquet Hall, 1262 N. Palm Ave., Sarasota. For more information visit sarasotachamber.com.
NOVEMBER 6
GOOD PR: Public relations executive Thomas Hall will be the guest speaker at the November Florida Venture Forum. The event will start at 11:30 a.m. at the University Club, 201 N. Franklin St., Suite 3800, Tampa. Cost is $45 for members and $55 for others. For more information visit FLVenture.org.
NOVEMBER 7
DEALMAKER: James Heistand, president and CEO of Parkway, will be the featured speaker at a CREW (Commercial Real Estate Women) Tampa Bay meeting. The event will run from 11:30 a.m. to 2 p.m. at Sheraton Tampa Riverwalk Hotel, 200 N. Ashley Drive, Tampa. Cost is $35 for members and $55 for others. For more information visit crewtampabay.org.
SOCIAL NETWORKING: Sima Dahl, president of Parlay Communications, will discuss social networking and developing a personal brand at Emerge Tampa’s Emerging with Influence event. The event will start at 5:45 p.m. at the T. Pepin’s Hospitality Centre, 4121 N. 50th St., Tampa. For more information call Ashley Ehrman at 813-276-9448. BLUE CHIP: Comedian, writer and producer Erik Stolhanske will be the keynote speaker at the Southwest Florida Blue Chip Community Business Award luncheon, which recognizes businesses for succeeding in the face of adversity. The event will start at 11 a.m. at the Harborside Event Center at 1375 Monroe St., Fort Myers. There is no cost, but reservations are required. For more information call 239-985-7614. SUCCESSFUL WOMEN: Author Fawn Germer will discuss lessons learned by successful women at the Clearwater Regional Chamber of Commerce AchieveHERs inaugural luncheon. The meeting will run from 11:30 a.m. to 1:30 p.m. at Ruth Eckerd Hall, 1111 N McMullen Booth Road, Clearwater. Cost is $50 for members and $60 for others. For more information visit clearwaterflorida.org.
NOVEMBER 7-9
TOURISM CONFERENCE: Luc Mayrand, creative director and senior show producer with Walt Disney Imagineering, and Chris Risdon, design director for user experience design with Adaptive Path will be the keynote speakers at the three-day International Service Design + Tourism Conference hosted by Ringling College of Art and Design on its campus. For more information visit servicedesigntourism.com.
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12 TECHNOLOGY
BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
BusinessObserverFL.com
Innovation can happen anywhere. Here’s a sampling of companies that are turning their ideas into reality, right here on the Gulf Coast.
IntelligentM wristband COMPANY: IntelligentM, Sarasota PRINCIPALS: Seth Freedman, Dave Mullinix and Dr. Andrew Fine. THE BIG IDEA: The IntelligentM wristband, which monitors doctors’ hand hygiene, is based on staggering medical statistics. For example, one in 20 hospital patients will get an infection after being admitted, and 50% of those stem from poor hand hygiene. About 100,000 people with those infections
died last year, says the firm, which cites Centers for Disease Control research. “We’ve got a solution that will address a major problem,” says IntelligentM cofounder Seth Freedman. “It’s easy to get passionate about this, because we are helping save people’s lives.” The essence of IntelligentM’s technology is Radio Frequency Identification, which is built to read data from far away. But IntelligentM flips the RFID technology to read single tags at small distances.
How it works...
iM
The IntelligentM SmartBand monitors the wearer’s hand-washing activity, corresponding with sensors throughout the hospital.
AquaRamp COMPANY: Dynamic Reach, Fort Myers PRINCIPALS: Robert Donnelly, Scott Kelly, Johnny Baker, Tyler Dalbora, Sandra Guerra, Eric Raudebaugh, Mally Burmaster THE BIG IDEA: A group of engineering and business students at Florida Gulf Coast University undertook a project in fall 2012 to help Goodwill Industries of Southwest Florida design a pool ramp for disabled people at their nature camp. The result: AquaRamp. Using a hand crank, a disabled person can sit in a seat that gently glides into the pool. It’s a system that’s less scary than current lifts that swing people over the edge of a pool.
Teburu COMPANY: Teburu, Tampa PRINCIPALS: Leon McIntosh, Greg RossMunro, cofounders THE BIG IDEA: When St. Pete’s Gondolier Pizza approached Leon McIntosh and
How it works... Teburu builds its online ordering system into a restaurant’s website, or creates a new website for it. Then, anyone can order food from the restaurant online.
1 Vibration = SOAP
3 Vibrations =
Inventors’ Sketchbook T he I ntelli gentM wristband tracks when, and how well, a physician washes his or her hands. Freedman, who has been involved in several other startups, helped launch the firm in 2010. The firm has since spent about $500,000 in startup capital, mostly on product development. It was also chosen to participate in two national health care accelerator business
When the wearer washes his hands, the SmartBand will vibrate once if he did a good job. If he failed, it will vibrate three times.
IV
When the wearer enters a patient’s room or is about to perform a procedure, such as inserting an IV, the SmartBand will vibrate if he hasn’t washed his hands.
What’s more, the students say they could manufacture the AquaRamp and sell it for about $3,000, less than the $5,000 to $10,000 cost of current models on the market. The students recently won the collegiate business plan competition organized by the Florida Venture Forum and they’ve formed a company called Dynamic Reach to raise money from investors so they can make and sell the product. “We’ve been trying to do it on a shoestring budget,” says Scott Kelly, a senior at FGCU and the company’s chief design officer. The market for the AquaRamp is significant because federal law requires pools at hotels and other public places install lifts for disabled people. Robert Donnelly, the company’s CEO, says a survey of about 300 hotels in Southwest Florida revealed 90% haven’t complied yet. “They’re all susceptible to lawsuits,” he says. Donnelly estimates the company may
need from $200,000 to $1 million to start manufacturing and sales. Currently, the students are creating the prototype and sales could begin as soon as six months from now. “We’re in the position now where we’re trying to find investors to get our feet off the ground,” Donnelly says. — Jean Gruss
Greg Ross-Munro’s software engineering company to create an online ordering system, the pair quickly recognized an opportunity. There were a number of restaurants that wanted to offer online ordering without sending customers to a third-party website. That’s when 28-year-old Leon McIntosh and 31-year-old Greg Ross-Munro decided to start Teburu, an online food ordering system that provides a branded experience to customers and a stronger, more reliable backend system for the restaurant, McIntosh says.
The company has built systems for 25 locations to date and is ready to turn on another 15, McIntosh says. Restaurants range from Sexy Pizza in Colorado to the Original Big Tomato in Fort Lauderdale. Teburu’s system processes orders totaling between $2,000 and $6,000 a week. McIntosh says Teburu’s system is more attractive to smaller restaurant chains than competitors offering third-party systems that cost $1,200 for initial setup and $100 a month for the service. Teburu charges
New Order
programs. IntelligentM has six clients: three hospitals, two medical practices and a long-term care facility. Freedman projects the company could have up to 24 clients, which would translate to $3.5 million to $5 million in sales, by the end of 2014. The business model is to build volume through a software as a service approach and charge per user within a hospital or medical facility. “The beauty about this is it’s trailing-edge technology,” says Freedman. “We priced it so that hospitals don’t have to make a huge investment in technology.” — Mark Gordon
HAND HYGIENE REPORT CARD The weare r’s h activity is and -washing re monitored corded and . Eve he gets a ry month, re showing h port card ow he’s do ing.
Crank 1 Crank 2
The chair is a floatation device.
How it works... The AquaRamp uses two cranks to lower a user into the water. One on the seat so the user can lower himself, and one at the top of the system for assistance if needed.
New Order
Pressing the red button brings the chair back down to the water.
around $500 for setup and $50 a month for service. The company plans to add 500 locations by the end of 2014. “The technology side is easy,” McIntosh says. “Now the focus is on sales.” To assist with this ramp up, the team has joined organizations such as the Florida Restaurant and Lodging Association and recruited former president of Beef O’ Brady’s Nick Vojnovic as a board member. — Traci McMillan Beach
When an order is placed, it travels directly to an Android tablet at the restaurant completing the order. The tablet beeps loudly until the order has been confirmed. With the touch of a button, the tablet will wirelessly print the order to the kitchen.
Money from the transaction is direct deposited into the restaurant’s bank account instantly.
NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
KeriCure COMPANY: KeriCure Inc., Wesley Chapel
THE BIG IDEA: Keriann Greenhalgh was researching healing chronic wounds for her Ph.D. in organic chemistry when she discovered something much more practical for the everyday user: an elastic polymer technology that resembled a second skin. Building a lab in her garage, Greenhalgh started experimenting with the polymer technology as a liquid protectant that would prevent infection for scrapes, cuts and burns. The need for this kind of product hit close to home for Greenhalgh, whose husband
How it works...
RE ICU KER
P R I N C I PA L S : K e r i a n n Greenhalgh, CEO and Chairman
several years earlier underwent surgery for a minor cut between his thumb and forefinger that became infected. With a background in gaining clearance from the Food and Drug Administration, Greenhalgh knew the amount of effort necessary to gain proper approvals. The FDA cleared KeriCure’s skin protectant products in May, and Greenhalgh is anxiously awaiting another FDA clearance for her liquid bandage. Greenhalgh launched KeriCure last August with $500,000 in funding from family and friends, and a $300,000 match from the state of Florida. Partnering with broker Jim Upchurch, KeriCure products are now carried in more than 900 Publix stores, 200 Kroger stores, and 50 specialty stores in the Southeast. They also receive online orders through
BusinessObserverFL.com
Spray Kericure on your wound. Amazon. The company is currently in talks with Sweetbay, Winn Dixie, CVS and Target. Keeping the brand regional to start is necessary for growth, Greenhalgh believes. Although Greenhalgh declined to share revenue, from June to October the company had more than 70,000 orders, including 60,000 orders from Publix and Kroger. KeriCure now has five full-time employees and eight research and development interns
13
It provides a nosting, protective shield that is flexible and waterproof while allowing skin to breathe. that operate out of the University of South Florida’s chemistry lab. Orders are fulfilled through Smart Science Labs and the MacDonald Training Center. KeriCure’s biggest challenge is marketing and brand recognition, according to Greenhalgh. She’s recently started a Pandora radio campaign, and is evaluating television, print and online ads. — Traci McMillan Beach
e r tu a r e p m e T y d o B le b CorTemp Ingesti r e d r o c e R ta a D p m e T r o C Sensor and the COMPANY: HQ Inc., Palmetto
PRINCIPALS: Bill Hicks, president THE BIG IDEA: The firm’s main products are the CorTemp Ingestible Body Temperature Sensor and the CorTemp Data Recorder. The sensor is a pill that transmits a body temperature while it travels through the digestive track. The recorder picks up the data and converts them into digital format for analysis.
The potential marketplace for the product is deep, but sustainable sales have been elusive, say officials at the six-employee company. The firm shares some employees with Quest Controls, a sister company. HQ Inc. targets customers ranging from high school football teams to firefighters, coal miners and oil and gas workers. Marathon runners have used the product, and so too have climbers ascending Mount McKinley. There’s also a non-human variation of the product, which has gone in racecar en-
gines, cows and paper mill machinery. Still, even though the product has been around since 1990, the technology hasn’t caught on in a big way. “I think we were ahead of its time,” says HQ Sales and Marketing Director Lee Carbonelli. “But general consumers are starting to see this more and more.” One large obstacle, says Carbonelli, is the price point — a challenge the firm has worked on for several years. The pills cost about $20 each, while the machine runs from $2,600 to
$3,000. Clients receive discounts on multiple CorTemp pills and machines, Carbonelli says. The firm hopes to lower the price in a new Bluetooth version of the product, named Elite, which could be on the market by the end of 2013, says Carbonelli. — Mark Gordon
CorTemp
1
2 3 4 5 6 7 8 9 0 HQInc. CorTemp
1
2 3
4 5 6 7 8 9 0
HQInc.
CorTemp
1
How it works...
HQInc.
A football player wants to monitor his body temperature so he doesn’t overheat on the field. So before the game, he swallowed a CorTemp Ingestible Core Body Temperature Sensor. It reads his core body temperature as it travels through his body.
Sandy Sail COMPANY: Sandy Sail, Naples PRINCIPAL: John “JJ” Jenkins THE BIG IDEA: John Jenkins was at the dog beach on Fort Myers Beach one day when he saw a man set up a blanket on a pole for shade. That’s when he dreamed up Sandy Sail, a sunshade that doesn’t blow away like umbrellas do when the wind picks up. Plus, it’s easier to set up than a tent. “A mom with two children can put this thing up in five minutes,” Jenkins says. The sunshade works like a sail, using the wind to billow the fabric. Like a sail, the sunshade has a center mast-like pole and crossbeam made of lightweight aluminum. Sewn-in pockets at the bottom of the sail can be filled with sand to stabilize the sunshade and its cross beam can be raised or lowered
2 3
4 5 6 7 8 9 0
The sensor’s signal passes through the body to the CorTemp Data Recorder the player is wearing on the outside of his body. The recorder displays his temperature in real time, or his coach can monitor it from the sidelines.
according to weather conditions. “I’ve had it on the beach in 25 mile-per-hour winds,” says Jenkins. Plus, it weighs the same as a large beach chair. The Sandy Sail is always a hit when Jenkins takes one to the beach, and that’s how he gets most of his orders now. A large Sandy Sail costs $225 and a smaller one costs $125. Jenkins says he’s had interest from beach resorts and sporting good stores that want one in camouflage for duck hunters. He says the camouflage version could have military applications, such as for desert combat. Jenkins says his challenge now is ramping up for mass production. To do that, he estimates he needs about $65,000 and time. That’s not easy because he owns a successful company in Naples called Auto Nanny, a car-maintenance service for seasonal residents. “I know Sandy Sail product is going to explode when it hits the market,” Jenkins says. — Jean Gruss
Football is just one possible use for CorTemp. The firm has also targeted firefighters, coal miners, marathon runners and even cows with a nonhuman variation of the product.
How it works... Lay out the Sandy Sail so the wind is blowing toward it. Fill the bags at the base with sand. Anchor the pole in the ground either on its own or with a sand screw. Thread the pole through the hole in the sail’s cross beam.
Raise the bar to whatever height you’d like to achieve shade.
CONTINUED ON PAGE 14
14 TECHNOLOGY
BusinessObserverFL.com
Stability Steps COMPANY: Freedom Dynamics, Naples PRINCIPAL: Eryk Hardwick THE BIG IDEA: Eryk Hardwick, a Naplesbased remodeling contractor, was working for an elderly client who complained about being unable to use his walker to get onto the beach. That’s when he developed the first prototype of Stability Steps, skids that attach to the legs of a walker so elderly and disabled people can enjoy the beach without getting stuck in the sand. Hardwick started developing his product in 2009 and was recently awarded a patent. “It’s been a chore just to get a patent. I went through three different attorneys,” says Hardwick, who estimates he spent about $27,000 on that effort.
Hardwick, a single dad, says the fittings are adjustable so that they can fit various heights and different models. “I had to figure out how to make it adjustable for all walkers and easy to store,” he says, noting that walkers are tricky because their legs aren’t parallel. Fact is, wheelchairs designed for the beach are bulky and have to be transported with a pickup truck. By contrast, walkers with Hardwick’s aluminum skids are lightweight to carry and easy to transport by car. Hardwick says he plans to make a future model with hard plastic and rubber skids so that users can move freely from outdoors to indoors without leaving scratch marks. The walker could be used on other surfaces too, such as snow. — Jean Gruss
Defender Pad COMPANY: DefenderPad, Bradenton Beach PRINCIPALS: Daniel DeBaun, CEO THE BIG IDEA: The idea behind DefenderPad, a laptop radiation shield and heat protector, isn’t necessarily new. But the inventor, Bradenton Beach entrepreneur Daniel DeBaun, says his patent-pending product is the only one on the market that combines state-of-the-art technology with actual medical research. “Most stuff in the marketplace is useless,” says DeBaun. “The DefenderPad is science.” The product, claims DeBaun, is a thermal resistive shield that protects the body from potential health concerns caused by electromagnetic radiation, extremely low frequency waves and radio frequency waves. Possible health issues from those rays, in addition to high temperatures a laptop can
BriefSkate COMPANY: Briefskate, Tampa PRINCIPAL: Alexei Novitzky, founder and designer THE BIG IDEA: While skateboarding between his graduate astrophysics classes, Alexei Novitzky decided he was sick of juggling his backpack and skateboard around campus. So he started to experiment. First he tried skating to class with his books between his feet; this just wasn’t
BUSINESS OBSERVER | NOVEMBER 1 – NOVEMBER 7, 2013
INVENTORS’ SKETCHBOOK
How it works... There are Stability Steps for three different uses. Each has adjustable rods that snap into a walker. Sand (top view)
Snow (top view)
Indoor (side view)
The sand Stability Steps can be used at the beach to walk through the sand and wade into the water.
Enter the Defender Pad, which blocks radiation when put on your lap.
How it works...
emit, says DeBaun, run from skin rashes and heat burns to infertility and cell damage. “People have a sense that there’s a problem” with harmful rays, DeBaun says, “but it’s not common knowledge.” DeBaun began to sell the DefenderPad in January, at $90 a piece, and has since sold about 5,500 units for around $500,000 in sales. Manufactured in Sarasota with U.S.made parts, the DefenderPad has its own website for sales and is available on Amazon, newegg.com and several other websites. It’s also sold in Sky Mall catalogs. A retired Bell Labs employee, DeBaun says he’s invested less than six figures in startup costs on DefenderPad. He says there are other product possibilities with the technology, and the firm, now just him and his son, is already in design mode for DefenderPads for smartphones and tablets. The firm is also developing a DefenderPad that could fold along with a laptop. — Mark Gordon
Laptop computers and tablets give off electromagnetic and heat radiation, which can have harmful effects, such as infertility and skin problems.
comfortable. Then he created a fold-up skateboard that could fit in his backpack, but it didn’t ride well. Finally it dawned on him: What if he could carry his books and pencils in his skateboard? Using two old skateboard decks, some latches from Home Depot and a piece of scrap wood, Novitzky built the Skatecase, a skateboard designed to double as a briefcase. Novitzky, 28, secured a patent for his invention with the help of one of his University of South Florida professors, Franco Lodato, who used to design for Motorola and Gillette. Novitzky made each board by hand, and started to sell them one by one for around $350 a piece. “I never had more than $100
to my name. All I had was a jigsaw,” Novitzky says. Although he declines to share revenues, Novitzky says to date he’s sold around 70 boards, and he’s given away an additional 200 to promote the product. This spring Novitzky recruited two business partners to help him officially kick off the business. Renaming their product the Briefskate, the team recently partnered with a skilled Tampa woodworker, who is starting to carve and build the skateboards. The team hopes to sell Briefskates in retail stores for around $150, the typical price of a skateboard. The firm also hopes to partner with global distributors such as Ron’s Surf Shop or Surf Style to carry the boards. — Traci McMillan Beach
es in It com ty of e a vari rs. colo
closed ...
The Aero 40” open ...
How it works... The BriefSkate is a skateboard that opens to hold your stuff. This model, the Aero 40”, is built for reliable performance while traveling to and from class. Its built-in storage area can transport your tablet/ laptop, books, pens & pencils, cell phone, snacks, etc.
CONTINUED FROM PAGE 12
And it’s portable. Its light and slim profile fits in a backpack, briefcase or laptop bag.
NOVEMBER 1 â&#x20AC;&#x201C; NOVEMBER 7, 2013 | BUSINESS OBSERVER
BusinessObserverFL.com
bottom-line behavior
BY DENISE FEDERER | CONTRIBUTING COLUMNIST
The challenge of agility
Among all the obstacles business leaders face, agility can be the toughest. But for the long-term health of a company, it might also be most important. with both qualities, so theyâ&#x20AC;&#x2122;re agile and resilient. Think about the leaders of Kodak, once a photographic superpower, now resigned to being little more than a footnote. Its business model relied on customers buying cameras and film. Even as the company saw digital technology encroaching on its territory (and it couldnâ&#x20AC;&#x2122;t have missed it), it steadfastly stuck to its core products, refusing to change with the times. The Kodak team lacked agility. Perhaps it allowed its own fears and anxieties to keep it on a course that was headed into an abyss. Or maybe its lack of action suggests it was unwilling to live with unknown consequences â&#x20AC;&#x201D; something every agile leader must do â&#x20AC;&#x201D; and unable to acknowledge that nothing lasts forever. Contrast that with a president and owner of a company whom I recently coached. He led his business through some difficult economic times five years
ago, having the foresight to reduce debt, cut back on staff and close less profitable divisions. Currently his company is exceeding its financial goals and is expanding. He has spent the past year evaluating his strategic plan and identifying key drivers for future growth. As part of that process he has also evaluated his own strengths, skill sets, passion and energy for leading his organization to the next level of success. He allowed himself to â&#x20AC;&#x153;thinkâ&#x20AC;? about several scenarios and possibilities for the future of his company. After careful consideration, this leader decided to remove himself from his role as president. He will remain as an active part of the organization, but no longer be responsible for the day-to-day operations. This individual is the very definition of an agile leader; looking toward the future, he didnâ&#x20AC;&#x2122;t see himself as the right person to move the company forward â&#x20AC;&#x201D; and he had the courage to walk away. I was frankly awestruck by him. How
Denise P. Federer, Ph.D. is founder and principal of Federer Performance Management Group. She has 27 years of experience working with key executives, business leaders and Fortune 500 companies as a behavioral psychologist, consultant, coach and trainer. Contact her at: dfederer@fpmg.info many times have we seen people hang on to roles when itâ&#x20AC;&#x2122;s clear his or her time is done? No one can become an agile leader overnight, but the process begins when you challenge your current thinking and assess your readiness for change. I ask clients to answer these seven questions: â&#x20AC;˘ What factors affect my industry? â&#x20AC;˘ How do these factors influence my current performance and behavior? â&#x20AC;˘ W hat behav iors/thoughts have made me successful so far? â&#x20AC;˘ How is my behavior affected by my motivations, values and goals? â&#x20AC;˘ What lessons can I learn from the experiences of other successful people in similar situations? â&#x20AC;˘ What new behaviors or proficiencies might I consider as keys to my future success? â&#x20AC;˘ What specific shifts in thinking and behavioral changes am I willing to make to achieve my future goals?
Research suggests that to excel as a leader you need to spend minimally 30% of your time on your business and 70% in your business.
So often we resist agile thinking because of our fear that we will be unable to successfully navigate the unknown. Once youâ&#x20AC;&#x2122;re honest with yourself and see what might be holding you back from being an agile leader, you can begin to be open to new possibilities for both yourself and your company.
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How often do you schedule time on your calendar to think about your company? Do you regularly consider if your current personnel are the right fit for their roles, contemplate future trends in your industry and evaluate how your business measures up to competitors? Research suggests that to excel as a leader you need to spend minimally 30% of your time on your business and 70% in your business. However, according to the most successful leaders I have coached, you might want to reverse those numbers. In fact, thinking is the single most important activity you can engage in as a leader. Asking the right questions is only the first step in this essential process. Being open to disruptive thinking and potentially unsettling conclusions are critical aspects of great leadership. Stellar leaders must be agile in their thinking to face difficult challenges and successfully lead organizations in a new direction â&#x20AC;&#x201D; even if that new vision makes them uncomfortable. Agile leaders need both vision and courage. The former is reflected by seeing whatâ&#x20AC;&#x2122;s coming down the pike to make decisions about the future, while the latter manifests itself in being brave enough to disturb the status quo to implement whatâ&#x20AC;&#x2122;s been decided. Some leaders are strong visionaries who lack the intestinal fortitude required to affect real change. Others are full of bravado, but have no strong vision for the future. The star performers, as you might surmise, are those
15
16 commercial real estate | TAMPA BAY |
BUSINESS OBSERVER | NOVEMBER 1 â&#x20AC;&#x201C; NOVEMBER 7, 2013
BusinessObserverFL.com
444-unit Audubon Village sells for $41.96 million BUYER: Memorial HWY FL Partners LLC (Cortland Partners LLC), Atlanta SELLER: CRP/Pollack Audubon Village LLC PROPERTY: 5830 Memorial Highway, Tampa PRICE: $41.96 million PREVIOUS PRICE: $32.5 million, September 2011 LAW FIRM ON DEED: Shutts & Bowen LLP, Orlando
The company will upgrade the interior of the units as they turn or during the renewal period. Altman estimates the interior renovations will take 18 months to complete. The sale comes shortly after Cortland Partners purchased the 448-unit Preserve at Deer Park apartment complex in Lutz for $26.8 million ($59,821 per unit). The company said of that project that it planned to invest more than $17,000 per unit in renovations to the property. â&#x20AC;&#x153;We continue to like the fundamentals in Tampa,â&#x20AC;? Altman says. â&#x20AC;&#x153;We continue to see a lot of positive things happening there.â&#x20AC;? The purchase entity, Memorial HWY FL Partners LLC, mortgaged the property to Parlex 1 Finance LLC for $10.86 million.
BY SEAN ROTH | REAL ESTATE EDITOR
PLANS, DESCRIPTION:
Contract pharmaceutical research and development company CoreRx Inc. purchased the 46,000-square-foot former Silicone Technologies manufacturing plant for $2.5 million. The price equated to $54 per square foot. That figure is higher than the twoyear average price per square foot for industrial space ($46) in the Tampa Bay area, according to the CoStar Group. CoreRx plans to use the new building to expand its current operations and add another 25 employees. Scott Clendening of Commercial Partners Realty represented the seller. Modern Silicone Technologies is consolidating its Clearwater, West Virginia and Chicago facilities into a new injection molding and design plant in a 123,000-square-foot tilt-wall manufacturing facility at 10601 U.S. 19 N., Pinellas Park. CoreRx did not replied to a request for comment prior to deadline.
PLANS, DESCRIPTION:
Cortland Partners has acquired its second multifamily property in the Tampa Bay area. The Atlanta-based real estate investment and management firm purchased the 444-unit Audubon Village apartments in Westshore for $41.96 million. The price equated to $94,496 per unit. Built in 1989, the 29.12-acre property features a tennis court, dog park, two racquetball courts, two swimming pools and laundry facilities. The development has a rough occupancy of 92%. â&#x20AC;&#x153;This is a very strong operating property,â&#x20AC;? says Mike Altman, chief investment officer for Cortland Partners. â&#x20AC;&#x153;We will continue to do value-add renovations. Weâ&#x20AC;&#x2122;ll be upgrading an already great location.â&#x20AC;?
COSTAR
Clearwaterâ&#x20AC;&#x2122;s CoreRx buys former Silicone Technology plant BUYER: TRW Properties LLC (principals: Willem Robberts and Ramachandran Thirucote), Menlo Park, Calif. SELLER: Debbie Beaty as trustee PROPERTY: 5777 Myerlake Circle, Clearwater PRICE: $2.5 million PREVIOUS PRICE: $1.63 million, April 2003 TITLE FIRM ON DEED: Fidelity National Title of Florida Inc., Clearwater
Broker, Delray Beach company buy South Bay Medical Arts building BUYER: South Bay Medical LLC (Stanley P. Whitcomb Jr. Revocable Trust and Chester Med LLC), Sun City Center SELLER: Cypress Park Limited Partnership PROPERTY: 4051 Upper Creek Drive, Ruskin PRICE: $3.75 million
PREVIOUS PRICE: $685,000, May 1996 TITLE FIRM ON DEED: South Bay Title Insurance Agency Inc., Ruskin PLANS, DESCRIPTION:
Chester Partners LLLP of Delray Beach and commercial real estate agent Stan Whitcomb purchased the 32,132-square-foot South Bay Medical Arts building for $3.75 million. The price equated to $117 per square foot. That figure is in line with the twoyear average price per square foot for office space ($115) in the Tampa Bay area, according to the CoStar Group. The 13-year-old Sun City Center medical building was 85% occupied at the time of the sale. Half the building, some 17,000 square feet, is leased by South Bay Hospital, which has been there since 2001. The concrete-block South Bay Medical Arts building is located adjacent to South Bay Hospital and the three-story Homewood Residence assisted-living facility. The 3.32-acre property includes 144 parking spaces. Whitcomb of Realtec Realty Inc. represented the buyer and will be managing it. â&#x20AC;&#x153;Medical buildings have a lot of demand in Sun City Center with the retirement community,â&#x20AC;? he says. â&#x20AC;&#x153;We expect to have the balance of the space filled up within the next 60 days.â&#x20AC;? The purchase entity, South Bay Medical LLC, mortgaged the property to American National Insurance Co. for $2.9 million.
ETCâ&#x20AC;Ś â&#x20AC;˘ Michael Mele and Luke Elliott in Marcus & Millichapâ&#x20AC;&#x2122;s Tampa office and Richard Jones, an associate in the firmâ&#x20AC;&#x2122;s Atlanta office, handled the sale of the 38,704-square-foot Sentry Storage in Belleview.
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AJC West Coast Florida 2013 Civic Achievement Award Dinner HONORING
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ENT
President | CEO Gulf Coast Community Foundation
Wednesday, November 13, 2013
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6:00 p.m. Michaelâ&#x20AC;&#x2122;s On East
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Junior Achievementâ&#x20AC;&#x2122;s role in educating youth about how business works is more important than ever. Do you have just ten hours a year to give students hands-on experience to prepare them for the workforce? With your help, we can continue empowering young people to own their economic success.
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commercial real estate | SARASOTA–MANATEE | Sunset Automotive Group buys land near Sunset Kia BUYER: Geyer-Dickinson Partnership LLP, Sarasota SELLER: Health Quest Realty IV PROPERTY: 7901 S. Tamiami Trail, Sarasota PRICE: $1.05 million LAW FIRM ON DEED: Williams Parker Harrison Dietz & Getzen, Sarasota PLANS, DESCRIPTION:
Sunset Automotive Group purchased a 3-acre vacant triangular parcel of land on U.S. 41 north of Beneva Road for $1.05 million. The price equated to $350,000 per acre. That figure is lower than the twoyear average price per acre for retail land ($893,571) in the Tampa Bay area, according to the CoStar Group. Sunset Automotive Group previously rezoned the property from office, professional and institutional to commercial intensive. At the time of the rezone it said its goal was to develop the western portion as an extension of the adjacent Sunset Kia dealership. The remainder of the land, it says, would be left unchanged. The group owns 16 dealerships, including: Volvo of Sarasota, Coast Infiniti, Coast Cadillac, Crest Cadillac, Tropical Cadillac, Suncoast Audi, Suncoast Porsche, Suncoast Volkswagen, Sunset Chevrolet, Sunset Buick GMC, Sunset Dodge Chrysler Jeep, Sunset Subaru, Sunset Fiat of Sarasota, Sunset Kia of Bradenton, Sunset Kia of Sarasota and Sunset Kia of Venice.
JEBCO buys Whitehall property near proposed Embassy Suites site BUYER: Rebco Ventures LLC (principals:
BY SEAN ROTH | REAL ESTATE EDITOR
Paul Beitlich and James Bridges), Sarasota SELLER: GCAG Whitehall LLC PROPERTY: 290 Cocoanut Ave., Sarasota PRICE: $1.04 million PREVIOUS PRICE: $1.83 million and $602,300, February 2008 LAW FIRM ON DEED: Carlton Fields PA, Miami PLANS, DESCRIPTION:
Sarasota-based developer JEBCO Ventures Inc. purchased a half-an-acre parcel at the corner of Cocoanut Avenue and Fruitville Road for $1.04 million. The property included the former Whitehall Homes buildings, which were demolished earlier this year. The land is also close to 202 N. Tamiami Trail, where JEBCO Ventures has proposed developing an 18-story Embassy Suites hotel. “This isn’t part of the Embassy Suites I’m doing, but it could be its sister,” says Jim Bridges, CEO of JEBCO Ventures. “We did a feasibility study for 130 units and suites in a limited services hotel there. We’re also looking at possibly doing a mixed-use project there. But we aren’t sure yet. We just knew it was a good piece of property with downtowncore zoning. It’s at a traffic light with a good traffic count.” JEBCO purchased the property from an affiliate of Global Capital Advisors Group, which foreclosed on the property in May 2010.
Key West Car Wash owners buy Cruizers Car Wash BUYER: KEO Investments LLC (principals: Erin and Kristin Orozco), Sarasota SELLER: Thompson-Hunt Properties LLC PROPERTY: 1555 N. Washington Blvd., Sarasota PRICE: $1.5 million PREVIOUS PRICE: $775,000, February 2008
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LAW FIRM ON DEED: Berlin-Patten PLLC, Sarasota PLANS, DESCRIPTION:
Sisters and business partners Erin and Kristin Orozco purchased the Cruizers Car Wash business and real estate. They acquired the 3,300-squarefoot building and 0.75-acre property for $1.5 million. The property offers both full- and self-service car washes. The Orozcos already own and operate the Key West Car Wash on U.S. 41 in Nokomis. “We actually live in Sarasota, close to downtown,” says Erin Orozco. “We really like the downtown market. We felt it would be actually easier to market to the people we know if we had a car wash that was closer.” Kristin Orozco describes the car wash as well kept and well maintained. The purchase entity, KEO Investments LLC, mortgaged the property to SunTrust Bank for $881,300.
be expanded from 2,900 to 4,000 square feet. Construction is scheduled for completion in May. • Lakewood Ranch-based Neal Communities reports it sold 657 homes through September far above last year’s record 442 home sales. The homebuilder sold 65 homes in September alone. • Landlord LLC purchased 1503 57th Ave. W., Bradenton from Liberty Savings Bank for $100,000. Rico Boeras of Preferred Commercial Inc. represented the seller and Marcia Cuttler of American Property Group of Sarasota represented the buyer. • Raymond Cuda leased 3,600 square feet of office and warehouse space at 1657-B W. University Parkway, Sarasota from Yonker Investments Inc. Jeff Button of Richardson Kleiber Walter Kleiber Button Inc. handled the transaction. • Randolph & Haynes LLC purchased 2050 Proctor Road, Sarasota, from Whiteman Properties LLC for $250,000. Rico Boeras of Preferred Commercial Inc. handled the transaction. • Statewide Protection Associates LLC is expanding and relocating its corporate headquarters to 2301 Ninth St. E., Suite A-2, Bradenton. The larger space is expected to allow the company to grow and hire additional employees.
ETC.
• REED Properties LLC purchased 11 acres at 12155 and 12159 U.S. 301 N., Parrish from Dearborn Street Holdings LLC for $500,000. Stan Rutstein of Re/ Max Alliance Group represented the seller and Marilyn Sakelaris of Leslie Wells Realty represented the buyer.
• Vanderbilt Country Club in Naples has hired Fishman & Associates Inc., a Venice-based commercial kitchen design and equipment company for its main clubhouse kitchen and bar expansion. The clubhouse kitchen will
• Origin USA Inc. leased 5,838 square feet at 771 Commerce Drive, Suite 16, Venice from Enzymedica Inc. Jag Grewal of Ian Black Real Estate and Kim Gilliland of Michael Saunders & Co. handled the transaction.
COVERAGE THAT SPANS FLORIDA COUNTIES
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18 commercial real estate | CHARLOTTE-LEE-COLLIER |
BUSINESS OBSERVER | NOVEMBER 1 â&#x20AC;&#x201C; NOVEMBER 7, 2013
BusinessObserverFL.com
BY SEAN ROTH | REAL ESTATE EDITOR
Wallace says the building had no deferred maintenance. Premier Commercial Inc. will handle leasing the buildings. The asking rate is $8 per square foot for the warehouse portion and $11 per square foot for the office space along with $3 per square foot for common area maintenance fees.
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Port Charlotte
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Rotonda West
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Punta Gorda 771 17 75
Fort Myers Shores
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New York investors buy North Naplesâ&#x20AC;&#x2122; Uptown Center for $11.2 million
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Lehigh Acres
Cape Coral 867
ETCâ&#x20AC;Ś
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Sanibel
San Carlos Park Immokalee 41 29
Bonita Springs
BUYER: Mt. Ridge Realty Associates LLC (principal: Kenneth Desrosiers), Webster, N.Y.
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Naples Park
SELLER: Naples Uptown Holdings LLC PROPERTY: 2700 Immokalee Road, Naples PRICE: $11.2 million PREVIOUS PRICE: $7.7 million, January 2012 LAW FIRM ON DEED: Coleman Yovanovich & Koester PA, Naples
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Golden Gate
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Marco Island
Ochopee
PLANS, DESCRIPTION:
A Webster, N.Y., investment group purchased the 75,000-square-foot Uptown Center in North Naples for $11.2 million. The price equated to $149 per square foot. That figure is higher than the twoyear average price per square foot for retail space ($140) in Southwest Florida, according to the CoStar Group. Located next to a Samâ&#x20AC;&#x2122;s Club, the retail center is anchored by Jasonâ&#x20AC;&#x2122;s Deli, CiCiâ&#x20AC;&#x2122;s Pizza, Fredâ&#x20AC;&#x2122;s and Pelican Larryâ&#x20AC;&#x2122;s. Its occupancy is currently about 80%. The sale marked a significant appreciation of the property over the past year and a half. The seller, Naplesbased private-equity fund Halstatt Real Estate Partners, purchased it from trustee U.S. Bank NA in January 2012 for $7.7 million. David Stevens of Investment Properties Corp. represented the seller and Dougall McCorkle of Premier Commercial Inc. represented the buyer. â&#x20AC;&#x153;One of the attractions was the upside because of the vacancy,â&#x20AC;? McCorkle says. â&#x20AC;&#x153;The vacancy really stems predominately from the soft economy. The buyer will be doing some roof repairs, but otherwise itâ&#x20AC;&#x2122;s in very good shape.â&#x20AC;? Premier Commercial will be leasing the property.
2 Australian real estate trust buys Palmetto Grove Industrial Park BUYER: Ozinus Palmetto LLC (Ozinus Realty LLC), Fort Myers SELLER: Palmetto Grove LLC PROPERTY: 2853-2861 Work Drive, Fort Myers PRICE: $2 million
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PREVIOUS PRICE: $1.45 million, March 2004 LAW FIRM ON DEED: Madden Law Firm LLC, Fort Myers
the property for the new owner. The buyer mortgaged the property to Palmetto Grove LLC for $600,000.
PLANS, DESCRIPTION:
An Australian real estate investment trust that operates as Ozinus Realty LLC purchased the 61,354-square-foot Palmetto Grove Industrial Park for $2 million. The price equated to $33 per square foot. That figure is lower than the twoyear average price per square foot for industrial space ($50) in Southwest Florida, according to the CoStar Group. The five-building industrial complex occupies a 4.6-acre parcel. The project features some 20 tenant spaces ranging from 1,140 to 4,560 square feet of warehouse and distribution space. The tenants include contractors, a window and door company, an auto detail business and motorcycle repair shop. The center was 85% occupied at the time of the sale. James McMenamy of Re/Max Realty Group Commercial Division was the managing member of the selling entity, Palmetto Grove LLC, and Stu Silver of Silver and Silver Inc. represented the buyer. McMenamy says that after owning the property for nearly a decade, he wanted to move on to other investments. Further, he says the buyer was primarily interested on the return on investment. The purchase price equated to a payoff ratio based on current income (capitalization rate) of 10%. Silver and Silver Inc. will be managing
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Sioux Falls, S.D., investors buy E.B. Simmonds Electrical headquarters BUYER: Kiropa Island LLC, Sioux Falls, S.D. SELLER: E.B. Simmonds Enterprises LLC PROPERTY: 3750 Enterprise Ave., Naples PRICE: $2.5 million PREVIOUS PRICE: $599,900, March 2001 TITLE FIRM ON DEED: Lutgert Title LLC, Naples PLANS, DESCRIPTION:
Sioux Falls, S.D., real estate investors purchased a 30,462-square-foot office and warehouse development for $2.5 million. The price equated to $82 per square foot. That figure is lower than the two-year average price per square foot for office space ($120) in Southwest Florida, according to the CoStar Group. The 1.84-acre property features a three-story, 15,716-square-foot office building and a two-story, 14,746-square-foot precast concrete warehouse. Built for E.B. Simmonds Electrical Inc. in 2009, the Architects Unlimited-designed development features a number of unique design and building systems. The office building features a glass elevator, three-story stone atrium and transparent walls. The roof of the warehouse was also built to accommodate a helipad. E.B. Simmonds Electrical will relocate from the buildings over the next 60 days. Dave Wallace and Tim Schneider of CRE Consultants represented the seller, E.B. Simmonds Enterprises LLC, and Dougall McCorkle of Premier Commercial Inc. represented the buyer. â&#x20AC;&#x153;The buyer just found the building to be an exceptional value,â&#x20AC;? McCorkle says. â&#x20AC;&#x153;The investors are very opportunistic. The building quality is exceptional, and it was priced very competitively. It could be used by one big user or subdivided into one user per floor.â&#x20AC;?
â&#x20AC;˘ AVAC Holdings LLC purchased a 2,340-square-foot office building at 1316 S.W. Fourth Terrace, Cape Coral from MB Reo-FL Office LLC. Nicole Gray, Randal Mercer and Brandon Stoneburner of CRE Consultants represented the buyer and Richard Clarke of Lee & Associates represented the seller. â&#x20AC;˘ Racetrac Petroleum Inc. purchased 3.11 acres of vacant land at Northeast Pine Island Road and Judd Creek Boulevard, North Fort Myers for $1 million. Gary Tasman and Shawn Stoneburner of Cushman and Wakefield | Commercial Property Southwest Florida LLC handled the sale. â&#x20AC;˘ Mr. Tequila Grill and Bar Inc. leased 5,500 square feet at 3785 Tamiami Trail E., Naples of restaurant space from Chrishelle LLC. Patrick Fraley of Investment Properties Corp. handled the transaction. â&#x20AC;˘ Keyedin Solutions Inc. leased 4,800 square feet of retail space at 11300 Lindbergh Blvd., Suite 104, Fort Myers from Dogwood Development of SW Florida. Randal Mercer and Brandon Stoneburner of CRE Consultants represented the landlord and Michael Drepanos of Florida Gulf Realty LLC represented the tenant. â&#x20AC;˘ The National Association of Church Design Builders has recognized Fort Myers-based J.L. Wallace Inc. with a 2013 Best Ancillary Facility Honor Award. The award honored the company for the International Community School Gymnasium in Winter Park. â&#x20AC;˘ Henderson, Franklin, Starnes & Holt PA leased 6,584 square feet of office space in the Bonita Bay Executive Center, Building II at 3451 Bonita Bay Blvd., Suites 206 and 209, Bonita Springs from American General Life Insurance Co. Randal Mercer and Brandon Stoneburner of CRE Consultants handled the transaction. â&#x20AC;˘ Mega Ventures Inc. purchased 2,075 square feet of office space in The Fountains Professional Park at 3372 Woods Edge Circle, Bonita Springs from SA Florida One LLC for $170,000. Craig Timmins and Clint Sherwood of Investment Properties Corp. handled the transaction. â&#x20AC;˘ Zippy Shell of Southwest Florida leased 17,051 square feet of warehouse space at 5641 Zip Drive, Fort Myers from Billy Creek 5641 LLC. Tim Schneider of CRE Consultants represented the landlord. â&#x20AC;˘ BUILD received the Best Commercial Office award for Venture X at the Collier Building Industryâ&#x20AC;&#x2122;s annual Sand Dollar Awards. In addition, along with Don Stevenson Design, BUILD received the Best Commercial Remodel Award for Chapel Grill. The awards recognize building, design and marketing excellence. â&#x20AC;˘ ARA South Florida principals Hampton Beebe, Avery Klann and Dick Donnellan represented New York City-based Praedium Group in its sale of Aventine at Naples to Continental Realty Corp. for $43.25 million. â&#x20AC;˘ Carlton Capital Group leased 6,300 square feet of industrial space in the Lyndon Building at 13850 Treeline Ave S., Units 4, 5 and 6, Fort Myers from Lyndon Investments USA Inc. Tim Schneider of CRE Consultants represented the landlord.
NOVEMBER 1 – NOVEMBER 7, 2013 | BUSINESS OBSERVER
corporatereport | Falls River Group hires GE exec as managing director Naples-based mergers and acquisitions advisory firm Falls River Group LLC has hired John Rowell as its managing director. Rowell has more than 20 years of finance experience, including 12 years in mergers and acquisitions with General Electric. At GE he initially focused on technology and sourcing. Most recently, RowROWELL ell led the M&A Group at GE Aviation, including the $5 billion acquisition of Smiths Aerospace.
Sabadell Bank & Trust promotes new S.W. Florida president Miami-based Sabadell Bank & Trust has promoted Scott Kellett to regional president of Southwest Florida. He will oversee private banking, wealth management and fiduciary services within the Naples, Fort Myers and Sarasota markets. Kellett joined Sabadell in 2010 and has more than 18 years of experience in the financial services industry. Prior to his promotion, Kellett served as the executive vice president and market executive for KELLETT Southwest Florida and led the initiative to open Sabadell Bank & Trust’s Naples office two years ago. Sabadell United Bank has 23 locations throughout the state, serving more than 40,000 clients, and is the fifth-largest bank in Florida by deposits.
BusinessObserverFL.com
19
BY SEAN ROTH | RESEARCH EDITOR
General Dynamics awarded contract from S.O.C.O.M for transportable vehicles. The U.S. Special Operations Command has awarded General Dynamics Ordnance and Tactical Systems in St. Petersburg a contract for transportable vehicles. The three-year contract is for up to 10 vehicles, with integration and logistical support and training. The total value of the contract is $5.8 million if all options are exercised. General Dynamics’ Flyer is a modular vehicle that can travel over severe, rugged and restrictive terrain in all types of weather and can be transported using a V-22 Osprey aircraft. The Flyer ITV can be recon-
Tech Data Corp. receives stay of stock trading suspension from NASDAQ Clearwater-based Tech Data Corp. has received a letter from The NASDAQ Stock Market LLC stating that its Listing Qualifications Panel has granted the company’s request to continue trading its common stock until a final determination hearing is held. The hearing has been scheduled for Nov. 7. At the hearing, the company says it will request additional time to satisfy the current financial filings requirement for NASDAQ listing. The panel typically issues decisions within 30 days of the hearing date.
figured in the field using modular parts and can be used for a variety of combat and humanitarian efforts including light assault, search and rescue, command and control and reconnaissance missions.
Wittenberg Weiner president honored in D.C.
Burger 21 Signs franchise deal for Tempe, Ariz., and Pompano Beach
Business Insurance Magazine names Alltrust fourth-best place to work
Tampa-based Burger 21 announced it signed new deals for the development of new restaurants in Pompano Beach and in Tempe, Ariz. Dan Lenhauser, who recently became Burger 21’s first Arizona franchisee, has agreed to develop a second restaurant in the Phoenix market. Earlier this year, Lenhauser signed a franchise agreement to bring Burger 21 to Chandler, Ariz., marking the company’s first restaurant to be developed in the West. The Chandler restaurant is expected to open in mid-2014 followed by the Tempe restaurant in 2015. First-time franchisees John and Brandi Porter plan to open their first Burger 21 restaurant in Pompano Beach. To date, Burger 21 has nine open locations and 18 franchised restaurants in development across the country.
Palm Harbor-based employee benefits and services firm Alltrust Insurance Inc. was named one of the Best Places to Work in Insurance by Business Insurance Magazine. Alltrust ranked fourth out of 65 companies nationwide. The fifth annual Best Places to Work Insurance list appears in the October issue of Business Insurance Magazine. The ranking, which involved months of in-depth evaluation, was created using a confidential employee survey and an employer questionnaire. Business Insurance Magazine considered U.S. public or private companies with more than 25 employees. The survey measured workplace experience, company culture, benefit programs and corporate policies. Alltrust was the only employee benefits firm in Florida to be recognized.
Women Impacting Public Policy (WIPP), the nation’s largest bipartisan women’s business group, recognized Tampa business leader Lauren Weiner, president and founder of Wittenberg Weiner Consulting LLC, with the Member to Watch Award. The award recognizes a WIPP member who has taken a leadership role in elevating the voice of women business owners in the national public policy arena. It was presented at WIPP’s annual leadership conference in Washington, D.C. Wittenberg Weiner Consulting serves as a consultant to U.S. federal agencies. Weiner founded the firm when she had difficulties securing a job as a military spouse. Weiner, who was a Business Observer 40 under 40 winner this year, is also one of the founders of In Gear Career, a non-profit organization serving professionally driven military spouses. She currently serves as chairwoman of the board.
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Jeff Button Jennifer Kleiber-Button 941-378-2328
KLEIBER BUTTON INC.
www.SarasotaWarehouses.com
Lic Real Estate Broker
Industrial & Office Properties For Sale or Lease Multi-Unit Industrial Complex High Occupancy Frontage on University Pkwy 3 Building Complex
SOLD
$26.38 Per Sq/Ft $1,750,000
REDUCED
5,240 Sq/Ft Free-Standing Commercial/ Industrial 3216 15th Street East Office, Conference, Reception & Warehouse Fenced & Paved Property - Outside Storage Zoned GC – Manatee County
NEW LISTING
Paved Fenced Yard 20’ Eave - Ground Level Loading & Covered Loading Dock
For Sale $ 1,350,000 / $45 Per Sq/Ft
1631,1635,1639 W University Pkwy
21,875 Sq/Ft Clearspan Warehouse
31,850 SF in Tampa 15,610 Sq/Ft Clearspan Warehouse w/2,000 Sq/Ft Office 16,240 Sq/Ft Clearspan Covered Paved Work Area 20’+ Eave Height, Loading Ramp, 3 Phase
FOR LEASE $6.96 / SF Gross
Fruitville Rd & I-75 Corridor 9,000 SF Office/Warehouse 20’ Eave Height / Paved Fenced Yard! Loading Dock & Grade Level Doors DON’T MISS THIS OPPORTUNITY!
For Sale $675,000
7,425 SF Multi-Tenant Investment Property 2001 Whitfield Park Ave High Visibility / 3 Phase / Ample Parking A/C Storage Warehouse Area – Nice Office Loading Dock & Grade Level Doors
2053 58th Ave Circle East 24’ Eave Height – 3 Phase Power Common Loading Dock 3 Grade Level Doors 2 Ventilation Doors
FOR LEASE $4.50 Per Sq/Ft NNN
SOLD SOLD REDUCED
18,000 Sq/Ft Office Warehouse 210 Center Court, Venice Clearspan with 27’ Clear Height 2,500 Sq/Ft Nicely Finished Office 2 Recessed covered loading docks!
Call For Details For Sale $299,999
For Sale $595,000 $79.33 Per Sq/Ft
Professional Office is FULLY FURNISHED and includes Open Reception Work Area, 3 Private Offices, Computer Server Area, Kitchen/Break room.
FOR LEASE
6,703 Sq/Ft Building On Whitfield Ave Uses Include Retail / Office / Industrial
3 Units – Partially Leased Less than Replacement Cost
863 SF Office Condo Lakewood Ranch 7365 Merchant Ct, Suite 7
Fenced & Paved Outside Storage 1634 Barber Rd – Sarasota 2,550 Sq/Ft Office 5 Overhead Doors Clear Span Warehouse
Multi-Tenant Investment Property
7,500 Sq/Ft Multi-Tenant Office Building w/Storage
3 Phase Power, 2 Story Office, Large Paved Fenced Storage Yard Single User or Multiple Units
9,165 Sq/Ft Office / Warehouse I-75 / Fruitville Rd Corridor
5 Private Offices, Workroom/Conference Room Kitchenette / Reception / Waiting Room
For Sale $499,000
12,670 SF Manufacturing Warehouse 505 Paul Morris Dr, Englewood
FOR SALE $119,500
$1,995 Per Month “Move In Special”
Preliminary Site Plan Approved for Two-Story 12,100 SF Professional Office! Zoned OPI – Lot Size 33,191 Sq/Ft
I-75 / Fruitville Rd Area Multiple Private Offices, Loading Dock, 3 Phase Power, A/C Warehouse/Production Area
REDUCED FOR SALE $399,000
2,140 Sq/Ft Office Space On Fruitville Rd -Zoned OPB 3277 Fruitville Rd
Cattlemen Road / Bahia Vista St Corner Office Site For Sale
5,000 SF Free Standing Office / Warehouse
For Sale $370,000
FOR SALE $592,500
MAKE OFFER
30,000 SF Industrial Facility 1212 East 44th Avenue
FOR SALE $359,000
FOR LEASE $920 Per Month Per Unit
REDUCED
3 Phase power / Fenced Storage Yard 18’ Eave Height, Insulated Ceiling, FOUR 14‘ X 14’ Overhead Doors
FOR SALE $420,000
2,000 Sq/Ft Flex Space Units Light Industrial – Office / Showroom
PENDING
6,000 SF Office / Warehouse 1599 Apex Rd, Sarasota
FOR LEASE OR FOR SALE
SOLD
1,750 Sq/Ft Flex Space Condo 3240 59th Dr East, Unit 108 Like New! Showroom! Built in 2007 / 20’ Ceiling Height
For Sale $105,000
Cheap Office Space
1,440 SF @ $840 / Month Gross 2,880 SF @ $1,680/Month Gross 3,360 SF @ $1,740 / Month Gross Includes Trash & HVAC Maint Multiple Floor Plans
124310
66,348 Sq/Ft Total