Feature Story
Paul Sands
The Commercial Market’s So Bright, He’s Got To Wear Shades
By Elizabeth W. Pearce

In his professional life, Paul Sands has seen the value of teamwork in more than one arena. Before moving to Southwest Florida from Sarasota in 1975, Sands worked as a pitcher for the Chicago White Sox. Although an injury permanently sidelined his baseball career in 1974, it prompted him to find opportunities on a much different playing field;the field of commercial real estate.

Today, Sands enjoys far more hits than misses as a commercial broker with Grubb & Ellis|VIP in Fort Myers. He’s been with the firm for almost half of his 25-year career and admits the market has changed dramatically over the years. Despite his relative youth, he remembers a time when it wasn’t uncommon for deals to be drafted on the back of a napkin and sealed with a handshake.

“Those days are dead and gone,” said Sands. “It’s not the ‘good old boy’ system any more. Our clients are used to doing business in major markets and they expect to be treated professionally. We’ve always done business that way. However, I think that being in the market so long gives our clients a sense of confidence in our abilities.”
Such longevity also gives Sands a rare perspective on Southwest Florida real estate. “I think it’s important to understand how the market has grown, and how things that happened in the past might affect the future,” he said. “I’ve seen 24% interest rates. Try selling a piece of property in that environment!”

Regardless of tough times, Sands has earned an outstanding reputation among competitors who describe him as forthright and honest. Nonetheless, he seems more comfortable giving credit to the pool of talent offered by Grubb & Ellis|VIP. During the past year, he has brought several key players under his banner, including licensed Realtor and executive assistant Martha Feeney, as well as commercial advisors Michael Doyle and Karen Johnson-Crowther (see box).

“I prefer to think of the people I work with as partners, rather than team members,” said Sands. “When someone hires me for a project, I try to assemble the best group for that client’s specific needs.”

For example, earlier this year when Sands was awarded a $24 million listing on Majorca Luxury Apartments in south Fort Myers, he chose to partner with Grubb & Ellis|VIP commercial advisor Jim Garinger. “You’re dealing with a pretty sophisticated buyer when you’re talking about that kind of property,” said Sands.

”Not only does Jim have a background in multi-family properties, he ran a major corporation in Dayton, Ohio, before he got into commercial real estate. His expertise has been invaluable.” Currently, the 248-unit complex has multiple offers.

In a business built on long-term relationships,Sands cites Harley-Davidson of Southwest Florida as one of his most enduring. Not only does he exclusively represent the motorcycle dealership, he is best of friends with its owner and president, Scott Fischer. Over the years, Sands has negotiated the land purchase for the company’s Naples store (on Pine Ridge Road near I-75), and the acquisition of the former Toys R Us store (on Colonial Boulevard) for the new headquarters building that opened in 2002. Currently, he is working on the following transactions in Fort Myers:

• The purchase of five acres near the international airport, where Harley-Davidson will build its Riders Edge Training School;
• The purchase of the 84 Lumber property on Colonial Boulevard, which will serve as headquarters for West Coast Motorcycles (currently on Boy Scout Road);
• The disposition of the former Harley-Davidson store next to Sam’s Club, across from Page Field.

“In every transaction, Paul has always put his personal financial interests aside,” said Scott Fischer. He’ll always say, ‘Let’s get the deal done first,’ even if (his commission) is at stake. I think that’s remarkable.”
Fischer adds that beyond Sands’ self-sacrificing nature is a keen capacity to hear what clients are saying. “Paul only brings me opportunities that fit my objectives. I appreciate that because I don’t want to be driving all over town, wasting time looking at things that don’t pertain to me or the business.”

Sands agrees that communication is key. “We really try to listen to what our clients want instead of trying to impose what we think is appropriate for them.” After analyzing a client’s needs and establishing their objectives, he and his partners usually conduct extensive research to determine:

• Where the growth is happening and what projects are coming to the market;
• Current traffic counts, as well as plans and timelines for new road construction and projections about their impact on different areas; and
• The latest demographics and market trends that can influence an investor’s decision on what to build and where to build it.

“There are many reasons to get in and out of the market, particularly if you base your opinion on absorption rates,” said Sands. “We strive to give our clients timely advice so that they can make informed decisions about their commercial investments.”

Often, clients trust Sands to make decisions for them, especially in the case of 1031 Tax-Deferred Exchanges. Cape Coral residents Al and Norma Colley did just that when they moved from California in 1998. According to Al Colley, he and his wife wanted to buy an income-producing property here to replace an investment property they had sold in California in order to a huge tax bill from The Golden State.

“At the time, everybody was looking for the same thing and we weren’t that familiar with the market here,” said Colley, adding that properties were selling as soon as they were listed. “We were right down to the wire” when Sands found a suitable multi-tenant building for the Colleys to purchase. “He took care of coordinating with everybody,” to close the deal without a hitch.

“It worked out perfectly,” added Colley. “The building is in the price range we wanted and it met our objectives. We’re very pleased.”

Although Sands sells and leases all types of commercial real estate, one of his specialties is industrial property. One of his current projects is the Sunset Annex Warehouse Condominiums, a mini-storage/warehouse facility on Summerlin Road that includes front office space. In a mere six months, Sands sold the entire 26,000sf first phase, all built on spec. Behind it, the owner is now building a lakefront annex of 40,000sf. Already, Sands has sold eight of phase two’s units, which range from 1,500-3,000sf. They will be ready for occupancy in January.

Sands also is working with fellow Grubb & Ellis|VIP commercial advisor Bill Shuba to market industrial lots in the 73-acre Alico Commercial Park, under development by JED Development on Alico Road between I-75 and U.S. 41. To date, they have sold all but two of the 48 building sites.

“We see things continuing to heat up pretty dramatically along Alico Road and Treeline Boulevard, as well as around the airport,” said Sands. “Accordingly, we plan to focus our efforts on representing the developers of numerous projects in that area.” In fact, one client from Baltimore plans to build 200,000sf of flex space on Alico Road later next year.
Sometimes the best deals involve unlisted properties, as Sanibel resident and investor Mark Marinello will attest. “Paul knows brokers and has a lot of clients, so he always has his ear to the ground,” said Marinello. “He’s extremely knowledgeable about what’s going on in the market and if there are rumblings that something might be happening (with an unlisted property), we’ll talk about it. I’ll look at anything and everything (because) opportunities can come in all shapes and sizes.”

Since the mid-1990s, Marinello has worked with Sands on the purchase and sale of various commercial properties, ranging from vacant land to restaurants. His current portfolio includes approximately 20 income properties in Southwest Florida, Illinois and Indiana. He says now that the market is favorable for selling, Sands is his exclusive listing agent.
“Paul actively markets my properties,” said Marinello. “I feel comfortable that if something’s not happening, it’s not due to lack of exposure.”

But what Marinello says impresses him most about Sands is that he’s trustworthy. “His word is his bond. He’s never let himself get in the way of a deal. We’re friends.”
According to Sands, cultivating personal relationships with clients is good business. “We want the relationships with our clients and the community, to last a long time. Getting to know clients on a personal level helps us do a better job for them.”

To enhance his ability to do so, Sands recently launched a Web site (www.paulsands.com) along with a quarterly newsletter called The Investors Edge. “The web site is one way people can instantly access all the information they need. If it’s a confidential listing, we direct them to where they can download a confidentiality and non-disclosure agreement that they can sign and fax back to us. After that, they can download the offering memoranda. It expedites the entire process.”

Sands frequently updates his Web site with newsworthy items, market developments and trends, and information about his partners. He’s also active in community affairs and is a director on the boards of both the Lee County YMCA and Cypress Lake Country Club. Thanks to his love of golf, he also co-chairs at least two annual charity golf tournaments to benefit local causes. The next one will be on June 19th at Cypress Lake Country Club to benefit the local YMCA.

Paul Sands Partners
• Martha Feeney is a licensed Realtor and Paul Sands’ executive assistant. Since she began the job in 1999, Sands’ business has skyrocketed. According to her boss, clients appreciate the caring and professional way she handles their transactions, and calls her “a terrific problem solver with a can-do attitude.”

• Mike Doyle is a commercial advisor who specializes in commercial leasing and investment sales. Prior to joining Paul Sands in January, Doyle spent 15 years as a commercial appraiser and an additional five years as a commercial banker. He brings in-depth valuation services to clients and also serves on the board of Big Brothers/Big Sisters of Lee County.

• Karen Johnson-Crowther is a commercial advisor specializing in office and retail sales and leasing. Although she’s a new colleague of Sands, she is well known throughout Southwest Florida with more than 20 years of commercial real estate experience.
 

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