Private Investor helps luxury builder in uncertain times

NAPLES — In a tough market, London Bay Homes in Naples is placing its bets on Mediterra.

Mediterra Naples Florida Country Club
The luxury homebuilder has launched The Estates at Cortile, a single-family enclave within Bonita Bay Group’s Mediterra community, which straddles the Lee/Collier county line off Livingston Road.London Bay, named America’s Best Builder for 2008 by Builder Magazine, recently got a boost from a $17.35 million infusion of capital from a private investor.The investor, who is not being named, now has a 20 percent interest in the company. Most of the money is being directed at growth opportunities in Southwest Florida.The Estates at Cortile will have 46 home sites with 28 villas and 18 estate homes.
“This is one of the last best sites in Mediterra, if not the last best project in Mediterra,” said Mark Wilson, president of London Bay Homes.Mediterra, a master-planned community, spans 1,697 acres. At build out, it will have less than 950 homes.London Bay has built more than 50 homes in Mediterra as a preferred builder on individual lots over the years.The estate homes in Cortile will start at about $2.4 million, including the lot, a “terrific price,” Wilson said. Smaller villas start at $1.6 million.
“The nice thing that you’ve got is because of the market, our pricing is approximately 20 percent down from where it was previously,” Wilson said.Though prices are down, the builder is still offering the same type of floor plans and square footage.There are eight designs for the estate homes, and another seven for the villas, which are on smaller lots.The lots for the villas are 75 feet wide. The estate home sites are at least 150 feet wide.The villas will be less than 4,000 square feet, while the estate homes will be larger — up to 8,000 square feet.London Bay has worked to get the best possible prices from its contractors to keep labor and material costs lower, Wilson said.The builder contracted to purchase the land for the new community several years ago. It’s being bought in phases, and some of it has not yet been purchased.
“We just started marketing and are going through the platting process,” Wilson said.There are two models built for the villas. London Bay is still deciding whether to build another model for the estate homes.
“I think it’s a great project,” said John McGarvey, president of McGarvey Development in Fort Myers.His company also builds in Mediterra. He called Cortile “the last nice development” in the community.He described Mediterra as “choice sirloin” and the project as “aggressive.”“London Bay bought the whole street,” McGarvey said.There are other builders putting up homes in Mediterra too, even as new home construction has stalled in Collier County.
“People would be surprised if they went to play golf at Mediterra. There are quite a few homes being built,” said David Auston, a real estate agent with Amerivest Realty who specializes in Mediterra and lives in the community.Some of the money from London Bay’s private investment is going into Cortile, but London Bay is also using it to buy land in other locations to take advantage of a bad market that has driven land costs down.
“If you don’t have the capital to do it, you can’t do it,” Wilson said. “A whole lot of builders will probably be in that category.”
In recent months, London Bay has been doing national advertising and it has gotten a good response, with more than 500 inquiries coming in, said Ken Plonski, a company spokesman.More buyers around the country seem to be recognizing that Florida now offers better values than it has in years — both at the low end and the high end.“I myself have sold 4 properties this year,” Auston said. “I have three different people coming in this month specifically looking at Mediterra.”
Mediterra has about 400 golf members. There’s room for about 100 more, Auston said.Bonita Bay is offering $100,000 toward the $185,000 membership at the golf club with the purchase of a new home, which is also helping sales, he said.
“I think people are taking more time to buy the luxury property,” Auston said. “But there are still sales going on.”(source: naples news 4-6-2009)

The country club at Mediterra is currently owned by bonita bay group, but the bank is in negotiations with the owners of Mediterra to sell the club to them

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