Ups and Downs of Commercial Real Estate-Sarasota - Spring 2014

Here is a sampling of transactions that reveal the shocking reality of the recession after the unbridled exuberance, unqualified borrowing and “everyone can be a developer” mentality of 2004-2008.

• 1750 Ringling Boulevard – this 2.1 acre parcel was acquired for $12,361,000 in 2005 for the planned Atrium Condominiums.  It then sold (bank-owned) in 2012 for $1,500,000;    down 88%.
• Southwest corner Blvd of the Arts and Cocoanut Avenue – this parcel was purchased for $6,772,500 in 2007 as part of the ill-conceived Proscenium development and was sold (bank-owned) for $687,500 in 2010; down 90%.
• 6.5 acres from Cocoanut Avenue to Florida Avenue and Blvd of the Arts to almost 10th Street – was assembled for the planned City Pointe condominiums and retail for approximately $16,500,000.  It sold (bank-owned) in 2013 for $4,500,000; down 73%.
• 1st Street, East Avenue and Audubon Place – was assembled for condominiums in 2006 for $5,775,000.  It sold (bank-owned) in 2012 for $750,000; down 87%.
• Southeast corner of Fruitville Road and Cocoanut Avenue – was purchased for $4,630,000 in 2008 for a proposed hotel and then sold (bank-owned) in 2013 for $1,040,000; down 78%.
• West side of Cocoanut Avenue between 4th Street and 5th Street – sold for $1,600,000 in 2005 and then sold (bank-owned) in 2012 for $310,000.  This parcel was also included in the Proscenium project; down 81%.

The staggering loss for the previous owners is a tremendous gain for the new owners!