By Elizabeth W. Pearce
While most of Southwest Florida’s established commercial firms are just starting to feel the fringe effects of a market correction, the pain is mounting for scores of smaller, newer companies, many of which opened to meet the growing demand for income-producing assets after the dot com bust and subsequent stock market plunge in 2002.
Premier Commercial Properties is not one of them.
Established in May 2002, the Bonita Springs-based firm comprises just four senior brokers. However, unlike their diminutive competitors, they have a major edge. Besides the 100 years of real estate experience between them, the group has two real estate powerhouses behind them: The Lutgert Companies and Premier Properties of Southwest Florida, Inc. REALTORS(r).
“Because we’re a family owned company that has been in the business for quite awhile, we know the market runs in cycles,” said Rod Mease, vice president of Premier Properties, a division of The Lutgert Companies. “It’s actually at this point in the cycle that some companies will explore ways to cut back. We’re not cutting back. We’re fortunate to be highly capitalized and right now, we’re spending more.”
Established in Naples by Raymond Lutgert in 1964, The Lutgert Companies is widely recognized as the area’s premier real estate development company. In addition to developing luxurious residential communities and high-rise condominiums, the company has developed and owns many of Southwest Florida’s most prominent retail centers and landmark, Class A office buildings.
One of its newest mixed-use projects is Mercato, now under development with The Barron Collier Companies. (see box)
Lutgert also encompasses title, insurance and other real estate-related companies, including Premier Properties. Since opening in 1984, the aptly named firm has represented exclusive residential and commercial properties in Lee and Collier counties, focusing on luxury homes and golfing communities.
Currently, Premier has more than 225 residential agents working out of offices from Sarasota to Marco Island, and is the exclusive Naples affiliate of Christie’s Great Estates.
Five years ago, Premier and Lutgert established Premier Commercial Properties in Bonita Springs to better meet the commercial needs of its existing residential clients. According to Mease, Bonita was the logical location for Premier Commercial.
“We really do feel that Bonita/Estero is the growth corridor of all of Southwest Florida, based on its proximity to the area’s major economic drivers such as FGCU, the airport and a concentration of retail development,” said Mease. “We wanted to be a part of that, which is why our focus for the last two to three years has been on that market.”
In addition to commercial marketing, sales and leasing, Premier Commercial offers expertise in site selection, land acquisition, development consultation and tax-deferred, 1031 Exchanges. Its nucleus consists of four senior brokers, each with at least 25 years of real estate experience, mostly commercial. Three of the four have lived in Southwest Florida since elementary school.
• Andrew DeSalvo, MBA, ALC (Accredited Land Consultant). DeSalvo moved to Fort Myers at the age of 6 and began working in Bonita Springs when he was 27. Before joining Lutgert to open Premier Commercial, he owned and operated the Bonita-based commercial brokerage of DeSalvo & Wyatt for nearly 20 years. His commercial efforts continue to be concentrated in Lee County, from Bonita/Estero north.
• Ron Sanson. Sanson grew up in south Florida and has been a real estate broker in the south Lee County market for 25 years, focusing exclusively on commercial real estate for the last six. In addition to retail and office leasing, Sanson specializes in 1031 Exchanges, and the sale of office/retail buildings and land.
His son, Aaron Sanson, also works for Premier Commercial as an associate agent, along with Matt Stepan. Both are licensed real estate agents.
• Dan Guoan. Guoan grew up in Naples and is a seasoned commercial broker and has been since 1979.The bulk of his work involves land sales for national developers and large landowners, mainly in Collier County.
• Dave Wallace, CCIM. Wallace joined the Premier Commercial team two-and-a-half years ago.
He hails from Rochester, New York, and brings with him more than 25 years of commercial real estate experience. As a Certified Commercial Investment Member, he is a seasoned professional in assisting clients with acquisitions and dispositions, including office and retail, as well as investment-grade properties. Currently, Wallace is working with a broad range of site selection and investor clients, and represents several retail centers.
Premier Commercial’s ability to broker significant transactions with and for major commercial players belies the modest size of its staff. It also speaks volumes about the power of the Lutgert name.
“Lutgert’s established stature has naturally provided Premier Commercial with an impressive pedigree,” said Dougall McCorkle, Lutgert’s vice president of commercial properties. “Furthermore, their commercial clients benefit not only from the resources and market knowledge that Lutgert and Premier share, but the extensive backgrounds of the agents themselves.”
According to DeSalvo, having a homegrown perspective on the market has its rewards. “The three of us have witnessed every market cycle in Southwest Florida over the last 25 years,” he said. “Coupled with the fact that all four of us have extensive experience in real estate and thoroughly understand the commercial industry, I think gives us a distinct competitive advantage.”
Clients agree. “”When I’m looking for a commercial property broker, I look for an understanding of the market and the product, particularly the ability to assist in ‘fine-tuning’ the product to meet the buyer’s highest expectations,” said Matt Doelger, development director for Simon Property Group. Those are among the reasons Simon retained Premier Commercial to broker the Offices at Coconut Point. It is part of its 550-acre Coconut Point mixed-use development in Estero.
The office project contains approximately 40,000sf in 43 units. To date, Premier has sold 26 units to a 50/50 mix of end users and investors who plan to lease out the space. About half of the units are now under construction.
“(The) brokers at Premier have been very responsive,” Doelger said, noting their attention to detail. “They promptly return calls and e-mail, and are quick to address questions by purchasers and prospective purchasers.”
DeSalvo noted that tenants are coming primarily from the legal and financial services sectors, such as law firms, finance companies, CPAs and other high-level professionals. “At $28sf NNN, they’re the highest rents in Lee County, but we’re getting them (because) the location warrants those prices.”
Another prized client of Premier Commercial is Oakbrook Properties, which owned the Coconut Point acreage before selling to Simon. Recently, Premier Commercial entered into a strategic alliance as the exclusive listing and purchasing representative for Oakbrook Properties’ Southwest Florida land transactions.
“We expect the commercial brokers we work with to have local knowledge of the area and region,” said Ned Dewhirst, Oakbrook’s senior vice president of Florida operations. “In partnering with Premier and specifically Andy DeSalvo, Oakbrook Properties gets the benefits of his 25-plus years of commercial real estate experience in Southwest Florida.”
The Oakbrook agreement includes the sale of its eight Coconut Point outparcels. Located along U.S. 41’s “Miracle Mile,” between Coconut and Corkscrew roads, the parcels are selling per square foot from the mid-$20s for interior pieces to around $30 for the hard corners. At press time, four of the eight parcels were under contract and negotiations for the balance were underway.
Other well known landowners, developers and banks feature prominently on Premier Commercial’s client roster, including: Bonita Bay; WCI; Ronto Development Corp.; The Barron-Collier Cos.; TIB Bank; Colonial Bank; Community Bank of Naples; Centex Homes; Lee Memorial Health System and Ironstone Bank.
“We also have clients from all over the world, many of whom are referred by our residential division,” said DeSalvo. In order to match their real estate objectives with quality opportunities, Premier Commercial’s brokers often work on transactions as a team, keeping in mind that most clients want to move quickly and discreetly.
“Frequently, they don’t want anyone to know that they’re in the market or what they’re looking for, so we tend to work quietly and confidentially,” he said. “We find what they want, even if the properties aren’t listed. We just don’t make a lot of things public.”
Premier Commercial has done well by keeping a low profile. “We try to put ourselves in their shoes (as we) outline various scenarios for return on investment,” said DeSalvo. “Our goal is to make sure our clients achieve what they want to achieve. Commissions take care of themselves.”
Above all, DeSalvo said, Premier Commercial’s brokers never lose sight of what they’re selling. “Real estate is a commodity. We’re selling our professional reputation and our integrity, which is infinitely more valuable.” -
Lutgert’s Commercial Projects
The Lutgert Companies has been responsible for developing many of the area’s most distinctive retail and office properties in Southwest Florida.
One of its most exciting mixed-use projects to date is Mercato, which is being developed as a joint venture with The Barron Collier Companies. Construction is now underway on the 53-acre lifestyle center, designed to provide a mix of retail, office and residential construction in the heart of Naples.
When completed, it will consist of nearly 375,000sf of pedestrian-friendly retail stores and restaurants, 100,000sf of Class A office space, and 175 residences priced from the $500,000s. Whole Foods, an 11-screen movie theater, seven major restaurants, a two-level bookstore and about 50 other upscale shops are expected among the retail tenants.
North Point is another mixed-use development being planned for a 100-acre parcel at the northeast corner of U.S. 41 and Williams Road, north of the Coconut Point retail center in Estero. Plans include a mix of commercial and residential space. Also, the company plans to build new Class A office space in north
Naples when it develops the Lutgert Professional Center on U.S. 41.
Established developments by Lutgert include:
• Crossroads Market. A 130,000sf of retail center anchored by Publix and Walgreens, located near I-75 in North Naples.
• Neapolitan Way. Located at U.S. 41 and Neapolitan Way in Naples, the Publix-anchored center contains 137,000sf of retail shops and restaurants.
• The Promenade at Bonita Bay. An upscale 105,000sf restaurant, retail and office center on U.S. 41 in Bonita Springs.
• The Village on Venetian Bay. More than 50 high-end shops, art galleries and restaurants are located in this award-winning, waterfront specialty retail center on Park Shore Drive at Gulfshore Boulevard in Naples.
• Northern Trust Building. The semi-circular design and reflective glass of this signature, Class A office building has been a Naples icon since 1990.
• Quarles & Brady Building. This Class A office building on Goodlette Road in north Naples is home to corporate tenants including Lutgert Insurance.
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