Feature Story

Business Continues to Accelerate as
Naples Developer Introduces Old World Architecture to New Commercial Space
By Elizabeth W. Pearce

Once-in-a-lifetime achievements seem to occur on an annual basis for Naples-based developer Joe D'Jamoos. Since establishing JED of Southwest Florida, Inc. in 1997, D'Jamoos has been on the fast track to success with a mind-boggling number of projects that have reshaped the area's commercial landscape.
In 1999, his company had 1.5 million square feet of commercial space under construction or in the design phase, primarily on choice parcels in Collier County. By 2000, he and partner Terry Jerulle had established D'Jamoos/Jerulle Construction to facilitate the development and construction of projects throughout Southwest Florida, including a handful in Lee County. Last year, D'Jamoos had an additional million square feet of commercial space on his development drawing board, and had begun construction of Summerlin Center, the largest office/retail development in Fort Myers.
With just one quarter remaining, 2002 is looking like another exceptional year for D'Jamoos and Jerulle. In addition to JED's launch of several new developments, the partners' construction arm has extended its reach in order to build projects for other commercial developers in the area.
Although D'Jamoos claims that his cup "is full, but not overflowing,"
the same cannot be said for his office space. To accommodate ongoing growth, JED and D'Jamoos/Jerulle have moved their offices from 3,500sf in Galleria Plaza to 7,500sf in Vanderbilt Galleria. (Both are in Naples and among JED's most successful developments to date.)
By year's end, the companies are expected to employ 35. As of late August, the staff totaled 28, including an in-house attorney and land planner. More significantly, JED's company roster features two recent hires who are especially near and dear to D'Jamoos - his son Andrew and daughter Betsy. Andrew, who recently relocated from Atlanta, directs JED's sales and marketing efforts while Betsy handles the company's operations.
"The beauty of it is they worked with me when they were right out of college and then explored other opportunities," said D'Jamoos. "To be working with them again, 15 years later, is very exciting. Also, it takes a lot of pressure off of me, particularly with the expansion. Their timing is perfect."
Their resumes are impressive, too. Andrew, for example, has worked as an area vice president of sales and marketing for a human resources consulting company and as a regional sales manager for a high-tech medical equipment manufacturer. Prior to working for JED, Betsy was a partner in an international small-business consulting firm in the U.S. and Europe, followed by eight years in Washington, D.C. as a senior executive in management and budget for the Department of Housing and Urban Development, and Health and Human Services under the Clinton administration.
While working for the family business may sound like a cushy job, that's unlikely to be the case with D'Jamoos. Although he admits his professional plate is full, the man just can't seem to resist revisiting the commercial real estate buffet. According to area brokers, D'Jamoos has an insatiable appetite for creating commercial landmarks and the resources to follow through on his ideas.
"Not many people can envision something and just go in and make it happen," said Paul Sands, a commercial broker with Grubb & Ellis|VIP-D'Alessandro in Fort Myers. "Unlike most investors who tend to go in and buy projects once they're built, Joe has an experienced eye that allows him to see things that other people may not. He has a great imagination."
That could explain why D'Jamoos is so excited about his pending plan to develop a commercial project at the northeast quadrant of the Colonial Boulevard/I-75 interchange within a sprawling DRI now called The Forum. Once known as the Omni property, the 706-acre parcel was purchased by Miami Heat coach Pat Riley for $12.5 million in 1998.
Although Riley has yet to unveil a comprehensive development plan for the property, it is expected to include a variety of components ranging from residential and retail space to office buildings and hotels. Since the first of the year, D'Jamoos has been working to structure a development deal on 14 acres of the red-hot parcel. He is proposing to build The Galleria at The Forum, a Mediterranean-style office and retail center similar to the Vanderbilt Galleria in Naples.
"With the development of Sun City and other properties around I-75, Colonial Boulevard is going to be a major throughway in the next couple of years," said D'Jamoos. "Developers are eating up properties all along the I-75 corridor for their residential and commercial projects. At this point, the (Forum) property is one of the most sought-after parcels north of the airport."
Aside from The Forum, D'Jamoos has more than enough to keep him busy for months, if not years, to come. "One of the trends we've seen this year is that people just don't want to wait when it's time to expand or relocate," he said. "Typically, they want proximity to new rooftops and I-75, and they demand immediate occupancy."
D'Jamoos said that people also prefer to see what they're getting before they commit to a lease or purchase. Consequently, D'Jamoos and Jerulle are breaking ground on a variety of commercial projects and buildings, many of which they predict will be snapped up before they're even completed.
Other Lee County Projects
In greater Fort Myers, the following two JED projects are being sold and leased exclusively by Paul Sands and
Bill Shuba of Grubb & Ellis|VIP-D'Alessandro:
- Summerlin Center. Construction continues at the 37-acre office/retail center at the corner of Boy Scout Drive and Summerlin Road. At buildout, the center is expected to contain approximately 500,000sf of commercial space, including a 50,000sf signature building for Colonial Bank and a 30,000sf medical office building for Internal Medicine Associates.
Currently, lakefront gazebos and a jogging path are under construction, and the five-story Colonial Bank building is nearing completion. Recently, ground was broken for two of 12 office buildings that D'Jamoos and Jerulle plan to build around the center's lake. One building contains 6,000sf, the other has 8,000sf. Both are available for sale or lease as condo units or entire buildings.
Preconstruction prices start at $145/sf, which includes a $20 buildout. Lease rates are from $16/sf. Future buildings will range from 6,000sf to 20,000sf. In addition to spurring interest from other potential owners, D'Jamoos predicts the spec structures will appeal to a wide variety of business people and medical professionals who don't want to wait six months or more for new office space.
- Alico Commerce Center. Located on the south side of Alico Road, between U.S. 41 and I-75, the 73-acre park is planned to include approximately 630,000sf of light industrial, office/retail and warehouse/showroom space. Build-to-suit land is available in parcels ranging from approximately one to 10 acres, starting at $3.85/sf.
Although groundbreaking is not expected until late September, at least eight contracts have already been signed. "So we're pretty excited about what's going to happen once we break ground," said Sands. "Our target is the trade industries that work in the Bonita/Naples/south Fort Myers area, including distributors and suppliers. We're also working with outside owner/investors."
According to Sands, the strategic location and all tilt-up construction will distinguish the Alico development from most other industrial parks. "What separates this project from others is that it has a commercial component at the entrance to the park, with a very attractively-done monument sign and architectural restrictions inside," he said. "This ensures that property values will be upheld and that aesthetics, such as colors and architecture, will be consistent."
It's that kind of attention to detail that makes D'Jamoos' developments so attractive to tenants, owners and investors, among others. "I'm not only representing him, I'm a consumer," said Rebecca Andrews, director of the Bonita division for Grubb & Ellis|VIP-D'Alessandro. In addition to being the exclusive leasing agent for three of D'Jamoos' Lee County projects (Colony Plaza, St. Andrew's Courtyard and Corkscrew Palms), Andrews and a group of investors have bought buildings in Vanderbilt Galleria and Galleria Plaza.
"He's very artistic," she says of D'Jamoos. Citing his use of materials, color schemes and landscaping that complement their surroundings, Andrews notes that D'Jamoos has a knack for tastefully incorporating classical, European architectural design into his commercial developments. "In this market, people seem to prefer the warm, Old-World feel of Joe's buildings over a more modern look."
Apparently, they also appreciate his innovative approach to individualizing commercial space. "If you've got 10 identical buildings in the same complex, that gets really boring," said Andrews. "(D'Jamoos') buildings are unique in design and color, so that each person who buys in one of his developments has their own identity."
Andrews said her investment group's next acquisition will be at JED's Corkscrew Palms in Estero, which she represents. Corkscrew Palms is on 16 acres between U.S. 41 and Corkscrew Road at Corkscrew Palms Boulevard. When completed, it will contain 10 office condominium buildings totaling approximately 100,000sf. The first phase, three buildings of 8,200sf each, has been sold. Units are priced from $165/sf.
"It's really a beautiful piece of property," says Andrews. "It's the first new office and medical product out of the ground along Corkscrew. There's been a lot of activity there (because) everything's going on out that way."
Leasing and sales activity is also accelerating at D'Jamoos' other projects in proximity, according to Andrews. At Colony Plaza, on the east side of U.S. 41 just south of Coconut Road in Bonita Springs, construction of a 36,000sf, three-story office condominium is nearing completion. Keystone Homes, a franchise of Rutenburg Homes, has purchased the first floor of 12,000sf.
Keystone will use half the space and lease out the remaining 6,000sf fronting U.S. 41, probably to a retailer. The remaining 24,000sf is available for lease at $18/sf plus CAM or for sale at $165/sf, including a $20 buildout allowance.
D'Jamoos is also poised to break ground on the first of nine office buildings at St. Andrew's Courtyard (formerly The Renaissance). The 14-acre property is across from the Bonita Community Medical Center on U.S. 41 in Bonita Springs. The property already contains 39,000sf of retail space occupied by Wilson Lighting and a multi-tenant strip center.
When completed, St. Andrew's will include some additional retail space in its 100,000sf, although the majority of space is planned for office condos. Buildings range from 6,000sf to 20,000sf, with units available for sale or lease.
Collier County
In north Naples, on Immokalee and Veterans Park roads, D'Jamoos has just broken ground on a 14,500sf building for Anchor Health Care. Completion is slated for October, 2003.
Also on Immokalee Road, east of I-75, he's finishing up Quail Plaza One (a two-story, 11,000sf medical building) and, on an adjacent parcel, is planning to build Quail Plaza Two (a two-story, 22,000sf office condo) next year. Sale prices for both start at $165/sf, including a $20 buildout allowance.
Elsewhere in Naples, Galleria Plaza is completed, although about 13,000sf of the 32,000sf in the final three-story building are available for lease on the first floor. London Bay Homes is taking the entire second floor. Upscale executive suites which JED recently opened on the building's top floor are 40% leased.
At Vanderbilt Galleria, all 200,000sf of existing office space has been sold, with Sanibel Steakhouse slated to open in October. However, in the next year, D'Jamoos says the next phase will begin, and two 30,000sf buildings and one 70,000sf building will be coming out of the ground, completing the project.
As the possibilities for profitable development in Naples continue to dwindle, D'Jamoos said he'll be heading farther north to Sarasota and Tampa. Next to the Sun City Welcome Center in Tampa, which D'Jamoos built last year, JED still owns some acreage. There, D'Jamoos said he would like to develop a medical center or professional office building while exploring additional opportunities in that area.
 

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