Depending on individual market demand, the company expects to begin construction on most of the projects this summer. "We have over 20 towers under way, just finished or about to start construction," George Page, Watermark senior vice president, tells GlobeSt.com. "Of these new buildings, we expect sales at nine of the 11, at the least, to be doing well enough to start in the second half of this year." Two of the 11 structures could start in the summer or early fall of 2002.
The privately owned Bonita Springs company is proposing developments in its headquarters community, Marco Island, Naples and Sarasota in southwest Florida; and Palm Coast, Jupiter, West Palm Beach, Aventura and Coral Gables along the East Coast. "I don't know of anyone doing the shear volume that we're doing," Page says.
Despite the scope of the project, the announcement of the undertaking didn't surprise South Florida real estate expert Lewis M. Goodkin, who has watched Watermark Communities flourish under the control of Alfred Hoffman Jr., the company's chairman; and Jerry Starkey, the company's president.
"Al's done very well in the vertical residential market," Goodkin, president of Miami-based Goodkin Consulting Corp., tells GlobeSt.com. "He sees it as an opportunity that is far more profitable than homebuilding. The margins are better."
Known for the development of the Sun City Center adult community near Tampa, Hoffman made a move in the mid-1990s toward luxury high-rise development with the acquisition of Westinghouse's real estate operations in Florida. "Al's trademark was taking over distressed properties and buying them on the cheap," Goodkin said. "That's what he did with the Westinghouse deal."
Later, the company expanded its holdings by acquiring a number of properties, primarily in the Palm Beach County area, from the John D. and Catherine T. MacArthur Foundation. The company relies on an internal sales staff to market the new properties, though the company probably will rely partially on its remarketing agent, Prudential Florida WCI Realty, a venture the company operates in cooperation with Prudential Florida Real Estate Affiliates.
"He (Hofflman) now has a statewide market," Goodkin says. Most of those sales are expected to come from inside each market, Page adds.
"Generally, you're talking about someone who lives in that market and already owns property," Page tells GlobeSt.com. "We're moving them up into a much higher level of product or pulling them out of a single family home where they're at an age where they want a much simpler lifestyle."
The following lists the proposed 11 developments:
* Tower Residences at Ritz-Carlton, Sarasota, 17-story, 76 units, 2,800 sf-5,300 sf, $1 million-$4 million.
* 1 Watermark Place, West Palm Beach, 15-story, 48 units, 4,000 sf-10,000 sf, $1.3 million-$6 million.
* Williams Island 6000, Aventura, 30-story, 165 units, 2,500 sf -10,000 sf, $800,000-$5 million.
* Two-phased Ventanas at Tiburon, Naples, first phase, three five-story luxury mid-rise towers, 86 units, 1,050 sf-3,000 sf, $250,000-$1.5 million.
* Milano at Deering Bay, Coral Gables, 13-story, 45 units, 2,800 sf-5,400 sf, $800,000-$2.5 million.
* Nevis at Cove Towers, Naples, 17-story, 58 units, $400,000 sf-$1.5 million.
* Mariner and Admiral, Jupiter Yacht Club, Jupiter, two eight-story towers, 27 units, 2,500 sf-3,500 sf, $500,000-$1.2 million.
* Belize at Cape Marco, Marco Island, 24-story, 148 units, from 2,600 sf-11,400 SF, $900,000-$9 million.
* Tower III at Colony Golf & Bay Club, Bonita Springs, 20-story, 64 units, from 3,400 sf-7,000 sf, $800,000-$3.5 million.
* Tower I at Hammock Dunes, Palm Coast in Flagler County, 12-story, 60 units, 2,000 sf-4,000 sf, $500,000-$2 million.
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