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GULF COAST

AUGUST 3 – AUGUST 9, 2012

Business Review

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New Medicine

Florida Medical Clinic follows a unique model: Let doctors be doctors.

The Weekly Newspaper for Gulf Coast Business Leaders

Success with Stuff Stuff is stuff. But thinking differently in the office-furniture business leads one firm to double its sales. PAGE 12

Mark Wemple

GULF COAST BUSINESS BUZZ

+ Remembering Glen Cross

Glen Cross was the kind of man who was equally at ease negotiating a deal in a suit downtown as he was hopping into the driver’s seat of a bulldozer.

southeast Hillsborough County, targeting instead northern Hillsborough and Pasco counties. A contrarian, Cross held onto the land along the Interstate-75 corridor through the recession of the early 1990s. His vision ultimately became reality when development started at Fishhawk in 1997. Although he avoided the limelight, Cross loved to show off the Fishhawk land to anyone who asked. He ferried newspaper reporters in his SUV, bounding through the property on dirt

roads while giant bulldozers cleared paths for new roads. He would stop to chat and shake hands with construction workers. Besides Fishhawk, the Indiana native developed and built homes in the Carrollwood and Town and Country areas of Tampa.

+ Unions target HMA

Health Management Associates executives warned analysts in a recent conference call that union activists are aggressively

targeting the Naples-based hospital operator. The company says the Service Employees International Union is targeting HMA to organize its employees. “Based upon my personal experience and having closely watched SEIU’s campaigns against other large health systems, it now simply appears to be our turn,� says John Starcher, HMA’s group president for the eastern division, according to a transcript

See COFFEE TALK on page 3

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COFFEE TALK

The soft-spoken Tampa developer who loved racing cars in his spare time was killed in a car crash July 24 in North Carolina. He was 72. With longtime business partner Hinks Shimberg, Cross is most famous for amassing 3,000 acres in southeastern Hillsborough County for a residential community that would eventually be called Fishhawk Ranch. In the late 1980s and early 1990s, residential and commercial developers didn’t favor

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www.review.net The Gulf Coast Business Review is Southwest Florida’s newspaper for business leaders. With offices in Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Lee and Collier counties, the Review is the only weekly business newspaper that provides business leaders, entrepreneurs, CEOs and investors with a regional perspective. The Review’s mission is to deliver relevant news and information on Southwest Florida’s leading and growing companies, up-and-coming entrepreneurs and the important economic, industry and government trends affecting business. The Business Review is also the leading publisher of public notices on the Gulf Coast of Florida.

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87156

“The road is cleared,” said Galt. “We are going back to the world.” He raised his hand and over the desolate earth he traced in space the sign of the dollar. Ayn Rand, Atlas Shrugged

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GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

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CONTINUED FROM PAGE 1

+ They did build it, and they are ticked off

Backlash to President Barack Obama’s now infamous four words — you didn’t build that — continues to grow in the local business community. Coffee Talk previously reported on YesIdidbuildit.com. Advertising executive Earl Quenzel, with Fort Myers-based Quenzel & Associates, launched the site to provide a venting portal for fellow business owners and executives who disagree with the president’s comments. The Mitt Romney presidential campaign has now seized on the brouhaha, too, specifically by staging “We did build this� events across Florida and in a dozen other states. One of those events was held July 30 in Sarasota, at Super-Sensitive Musical String Co. Ron Van Ostenbridge, the firm’s chief operating officer, called President Obama’s comments “appalling.� Ostenbridge spoke under a banner that stated “You’re wrong, Mr. President, we did build this business.� Jim Cavanaugh, president of the company, says the comments especially sting because he and his family have spent the past year reinvesting in the business, which manufactures musical instrument accessories. The plan, according to Cavanaugh, is to become more efficient, so it can fend off overseas competition. Says Cavanaugh: “We are the ones who put it all on the line to build this.�

+ Political forum draws candidate fest in Lee

Who says there’s political apathy? More than 60 candidates for various political offices showed up at what was billed as Lee County’s biggest political forum July 26. Coffee Talk can’t remember

SEEKING 40 UNDER 40 The Review is scouting for bright, young business leaders for the 13th year of the popular “40 under 40� issue. It’s open to entrepreneurs, executives and professionals in any field or industry from Tampa to Naples. And of course, the winners must be under age 40 by the time this issue publishes on Oct. 5. The rules are simple. Please email the name, age, city of residence and short biography or resume of the person you are nominating to Forty@ review.net. You may nominate yourself, too. The nominee must work and live in the Review’s coverage area, which includes Pasco, Pinellas, Hillsborough, Manatee, Sarasota, Charlotte, Lee and Collier counties. The Review editors will then select finalists who must answer a questionnaire and provide a high-resolution photo for publication. The photo and the answers to the questions may be published if they’re selected as a winner. Include a telephone number and an email address for the nominee, as well as contact information for the nominator. The deadline for nominations is Aug. 17. For questions, call Lee-Collier Editor Jean Gruss at 239-275-2230 or email jgruss@review.net.

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a bigger local political confab. The event at Harborside Event Center in downtown Fort Myers was sponsored by the Lee County Bar Association and featured former Lt. Gov. Jeff Kottkamp as the moderator. A “mini expo� before a question-and-answer session allowed citizens to meet the candidates individually.

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of the call posted on SeekingAlpha.com. Starcher oversees the company’s hospitals in Pennsylvania, where union organizers are particularly active. “You might be aware that the union was present at our recent annual stockholders meeting,� says Starcher. “It has also put up a website. It has run newspaper ads. It has passed out fliers at various physician seminars and physician career fairs.� Starcher says HMA is among the last large publicly traded hospital companies that hasn’t been unionized. HMA operates 70 hospitals with about 10,500 beds in non-urban areas around the country.

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What it means: Business Source: Florida Legislature Office of Economic & Demographic Research owners in the Naples area posted the strongest annualpercentage gains in business investment age increases in this category, including in May, reflecting a recovering tourism Fort Pierce (up 29.6%), Lakeland (up and housing market. Every area of the 15.6%) and Pensacola (up 14.5%). Gulf Coast posted annual growth Forecast: Despite a surprisingly strong in this taxable- showing in May, business investment will sales category, grow modestly until major economic and though the political issues are resolved, including Tampa Bay re- the November presidential elections and gion lagged the tax policy. Still, expect modest growth 5.8% stateto come from entrepreneurial companies wide increase. seizing opportunities to expand. Real esSeveral areas tate and tourism are two industries that around the state posted will continue to show gradual strength double-digit annual percentthrough the fall.

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4

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GULF COAST WEEK REGIONAL BUSINESS NEWS AT A GLANCE

SARASOTA-MANATEE Company plans hires

A global industrial gases manufacturing firm announced plans to build a facility in north Manatee County that it says will lead to 250 jobs over five years. The company, Allentown, Pa.based Air Products, intends to purchase 30 acres at Eastport Industrial Park in Palmetto, near Port Manatee, according to a Manatee Economic Development Corp. release. The company will then build a 300,000-squarefoot facility where it will manufacture equipment that processes natural gas into liquid form for easier transport to markets, the EDC says. Manatee County officials approved $680,000 in performance-based incentives to re-

EXECUTIVE

DECISION Are you underwater on your home’s mortgage? To vote in this week’s poll, visit: review.net/decision Results from last week’s poll: Did President Obama’s comments on businesses change your vote? 24% Yes

76% No

cruit the company, while Florida officials committed $1.7 million, according to the EDC release. The county also approved a transportation impact fee incentive worth nearly $47,000.

Firm shutters operation

Bradenton-based Pierce Manufacturing, a subsidiary of Oshkosh Corp., plans to close its ambulance manufacturing facility, a move that will lead to about 300 local layoffs. Pierce’s fire truck manufacturing plant in Bradenton will maintain its current employee levels, about 285 people. But company officials say its Medtec ambulance division, which it recently consolidated, loses money. Layoffs could begin in November.

Airport traffic rises

Sarasota Bradenton International Airport passenger traffic increased almost 10% year-overyear in June, and the total count for 2012 remains ahead of 2011. The airport reported that 95,439 passengers flew through its gates in June, up 9.6% from 87,085 passengers in June 2011. The airport handled 752,111 passengers through June 30, up 1.9% from the same time in 2011. Airport officials lauded the increase, though they acknowledge the figures are poised to drop later this year when AirTran Airways terminates service. AirTran, a subsidiary of Southwest Airlines, announced its departure from the airport earlier this year.

Airport officials have since begun to woo other airlines, both to expand current service and offer new destinations.

The Tampa Port Authority signed an agreement to purchase 110 acres from South Bay Corp. and Industrial Park Inc. for $8.9 million. The land is adjacent to the

Port Redwing facilities in south Hillsborough County. The purchase will allow the port to extend direct rail connections to Port Redwing. According to a release, the port authority plans to develop the land for cargo terminals and distribution and cargo-generating industrial manufacturing facilities. The Port of Tampa is Florida’s largest port.

to discharge more fresh water using river locks violates federal and state clean-water laws. Plaintiffs include the Conservancy of Southwest Florida, Florida Wildlife Federation and the Environmental Confederation of Southwest Florida.

and a plan will be submitted to the state for approval by Dec. 31.

CHARLOTTE-LEE-COLLIER Beasley profits rise

Beasley Broadcast Group reported profits rose 37% as the radio operator trimmed expenses in the second quarter, but revenues dropped because of advertising weakness in markets such as Fort Myers. Beasley reported net income rose to $3.9 million in the second quarter compared with the same quarter one year ago. Revenues fell 2.8% to $24.8 million during the same period. Beasley attributed the increased secondquarter earnings to lower interest expense and lower station operating expense. Naples-based Beasley owns and operates 42 radio stations in 11 markets around the country. The company’s stock is publicly traded (symbol: BBGI; recent price: $5.30).

Greens file suit

A coalition of environmental organizations filed a federal lawsuit against the U.S. Army Corps of Engineers alleging that the agency doesn’t allow enough fresh water to flow down the Caloosahatchee River. The Caloosahatchee flows from Lake Okeechobee through Fort Myers to Sanibel and into the Gulf of Mexico. Environmentalists allege that the Corps’ failure

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Fly to Ottawa

WestJet recently announced it plans to inaugurate weekly flights from Fort Myers to Ottawa, Canada, starting Dec. 22. This will be the first nonstop route from Southwest Florida International Airport to Canada’s capital. WestJet is a Canadabased discount airline that currently flies from Fort Myers to Toronto.

Enterprise zone considered

Charlotte County economic development officials are exploring the creation of an enterprise zone that would provide tax advantages and incentives for businesses that locate there. If approved by the county commission, an Enterprise Zone Development Agency will be created

TAMPA BAY Sykes buys $150M firm

Sykes Enterprises, a customer management outsourcing firm, has acquired Alpine Access, a virtual call center company with 5,000 employees across the U.S. and Canada. Sykes will pay $150 million in cash for Denver-based Alpine, according to a release. Alpine, founded in 1998, focuses on recruiting, training and managing call center employees. Alpine’s clients are mostly in the communications, health care, retail, government and the financial services sectors. Alpine’s revenues grew at a compound annual rate of approximately 34% from 2008 to 2011, while remaining profitable since 2009. Alpine’s revenues were $105.7 million for the 12 months ended June 30. The transaction is expected to close around the end of the third quarter.

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COFFEE TALK

CONTINUED FROM PAGE 3

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Dave Olund, SinoFresh CEO of users, including Olund, called the product a solution to sinusitis. SinoFresh can still make a comeback. Its most valuable asset at this point would seemingly be its intellectual property — given the nasal spray’s popularity. Of course, if SinoFresh executives were to sell its patents, instead of finding capital to continue on, that would most likely mean an inglorious end for its longsuffering shareholders.

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A once-promising homeopathic nasal spray company with a popular product — but a troubled past — faces difficult times once again. The company, Venice-based SinoFresh, remains technically in business. Still, problems run deep: The Securities and Exchange Commission delisted SinoFresh’s shares, once traded over the counter, in May 2011. The company’s website has been taken down, and its office phones were disconnected. Coffee Talk hears the website was shuttered because the company has no inventory left to fulfill orders. SinoFresh executives, including CEO Dave Olund and onetime board chairman Tom Fitzgerald, didn’t return several messages for comment. Chief Financial Officer Bill Baumgardner referred all questions to Olund, only to say the crux of the issue was that the company “wasn’t able to raise any money.� Indeed, capital issues have plagued SinoFresh for nearly a decade. The company had $4 million in sales in 2005, for example, but in 2004 it lost $3.7 million, and 2006 it lost $4.9 million. It held $2.5 million in debt in 2010, according to SEC records. (See Business Review, March 4, 2011.) But the company, founded in 1999 by Sarasota entrepreneur Charles Fust, built a base of devoted followers courtesy of an over-the-counter homeopathic antiseptic spray to treat congestion and sinus pressure. The company says its patented formula kills germs and bacteria, and dozens

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+ Sing me a tune

Chamber music has a new meaning, at least in Fort Myers. The Greater Fort Myers Chamber of Commerce recently announced plans for its first annual Chamber Sing Off Aug. 30. The Sing Off will take place at the Edi-

son, a restaurant and bar on McGregor Boulevard in Fort Myers. And, no, this is not a karaoke drinking game. A panel of judges will pick the winners based on voice quality, stage demeanor and audience feedback. The winner will get bragging rights.

+ National economic survey a ‘real downer’

The monthly optimism index from the National Federation of Independent Business continues to defy its name. The lobbying group’s latest not-so-optimistic optimism index fell three points in June to 91.4 — erasing all the gains it picked up earlier this year. Plus, only one of the 10 index components improved, expected credit conditions, the NFIB says. The problems and worries survey respondents cite the most are not new to Gulf Coast executives and entrepreneurs. The top three: weak sales, at 23%; taxes, 21%; and unreasonable regulations and red tape, 19%. “All in all, this month’s survey was a real economic downer,� NFIB Chief Economist William Dunkelberg says in a release. “The economy has definitely slowed; job growth will be far short of that needed to reduce the unemployment rate unless lots of unemployed leave the labor force — no consolation.� Adds Dunkelberg: “With the Supreme Court’s endorsement of the individual mandate as a tax in its health care decision, we will have to wait for July’s survey to realize the effect it will have on small business confidence.� Coffee Talk isn’t exactly optimistic that survey will turn out positive.

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firm, founded in 2003, has experience in building retail, office, health care and multifamily projects. Past work includes Home Depots, Wal-Marts, and Costcos, in addition to several medical office buildings, nursing homes, banks and condo projects. Eidco hired industry veteran Bill Carpitella to run the Florida expansion, which will be based in Sarasota, out of an office in Lakewood Ranch. Carpitella was previously an executive at several large real estate and homebuilding firms, including K. Hovnanian Enterprises and Pulte Homes. “We believe the west coast of Florida is on its way back,� Carpitella tells Coffee Talk. “What’s driving it is the increase in homebuilding.� Carpitella refers to increased activity among both national and local builders. Moreover, land acquisitions in many areas of the Gulf Coast have recently multiplied. Carpitella nonetheless recognizes he will enter a crowded industry, despite a recession-led thinning out. He says he doesn’t expect to land new work in 2012, which will be more of a time to network. He does expect to begin getting business in 2013. “We want to be a little more well known,� says Carpitella. “We’re not looking to be a flash in the pan.�

6

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GULF COAST

More than numbers

For the past seven months, the Business Review has been busy gathering revenues and other data to rank the top 500 companies from Tampa to Naples. Inserted as a booklet in this issue, you’ll find that ranking, known as the Gulf Coast 500, as well as lists for the fastest-growing companies, the largest employers, companies with the largest declines, and more. As impressive as this one-of-a-kind list is, it’s just that: a list. To show more than a company’s revenue performance, in this issue we’ve highlighted some of the stories behind the numbers for several companies on the list. Rather than choose whom to feature based on rank, we sought to include a variety of businesses facing a variety of challenges. Unsurprisingly, recessionary survival emerges as a major trend in their stories, which share how each business handled decisions, strategies and struggles to survive and even thrive in challenging economic times. No matter what your business, these topics may seem familiar. Some of the featured companies have taken a hit, while others have grown throughout the recession. But no matter the rank or the revenues, all these stories share keys to a third R-word: resiliency. — K.H.

GULF COAST 500 No. 282

Down the hatch

A specialty food distributor plans to help its suppliers grow by providing them with capital and expertise.

Innovative Food Holdings Revenues

10 8 6

Year Revenue Change 2009 $7.6 million 2010 $9.9 million 30% 2011 $11.6 million 17%

’09 ’10 ’11

Source: Innovative Food Holdings

DID YOU KNOW?

“

Sam Klepfish, Innovative Food Holdings: “We’ve built a team of mentors.”

242“

All of our employees are encouraged to

GC

allowed the company to focus on acquiring more customers by spending more on marketing. For example, the company has been aggressive both online and at food-industry trade shows. “We probably do 14 to 17 shows a year,” says Wiernasz. Innovative Food also recently acquired Artisan Specialty Foods in Chicago for $1.2 million. Artisan supplies more than 1,200 gourmet-food items to more than 450 customers in the Nancy DeNike Chicago area. Sam Klepfish, CEO of Innovative Food Holdings, says his comMore important, pany will start funding and providing guidance to food startups. Artisan owns a warehouse facility where it can repack and store specialty items. That’s key because it can buy items in bulk at a discount and repack them for distribution. For example, some chefs order specialty blends of rice, so Ar- store them. “It really gives us a lot more tisan can buy large quantities and repack flexibility,” Klepfish says. Innovative Food has also taken advanthem so it can avoid the higher cost of ordering small quantities. “They were one tage of building its network of suppliers of our suppliers,” says Klepfish. “They for chefs by creating an online retail site called ForTheGourmet.com. “The prodhave a great management team.” Besides being able to repack bulk ucts we sell are the same as the ones for goods, Klepfish says the Artisan acquisi- professional chefs,” says Klepfish. “That’s tion allows the company to buy certain very hard to find.” — Jean Gruss goods in season when they cost less and

no.

“

$12 million

companies at any given time,” says Klepfish. What’s more, suppliers have access to the vast network of U.S. Foodservices Inc., one of the nation’s largest food-distribution companies with whom Innovative Food has a distribution agreement. Klepfish and Justin Wiernasz, president of subsidiary Food Innovations, say they’ve helped dozens of companies informally. Since word got out about Food Hatch, Wiernasz says they’ve been “inundated” with interest from small farmers and food producers. For example, Innovative Food executives say there are opportunities to invest in small producers of specialty foods that are in short supply now. “Alligator and ostrich meat are scarce right now,” Wiernasz says. Meanwhile, Innovative Food’s main business of providing food for chefs at restaurants, country clubs and hotels across the country has benefited from the healthy food trends such as those that are gluten free or low sodium. Now, the company offers more than 600 products in what it calls the “health care” category. “That’s been a good, fast-growing segment for us,” says Wiernasz, noting the addition of customers such as nursing homes, hospitals and colleges. In 2011, the company’s revenues rose 17% to $11.6 million and it swung to a profit, posting net income of $1.5 million. Its shares trade publicly under the symbol IVFH. With its own software programmers who provide the behind-the-scenes order processing, Wiernasz says the company can add customers and change the prices of more goods without adding staff because everything is automated. That’s

VOLUNTEER

FineMark National Bank & Trust

“

I

nnovative Food Holdings is so good at what it does that its executives helped some of its suppliers achieve bigger success than they have had so far. Certainly, Naples-based Innovative Food has successfully grown sales at double-digit annual percentage rates in the last three years by providing America’s top chefs with the best ingredients it can find. Products range from heirloom tomatoes to sashimi-grade tuna, soft-shell crabs, foie gras and Italian gorgonzola. But some of the 6,500 products the company provides to 30,000 chefs around the country come from small producers. As a result of distributing through Innovative Food, these purveyors of fine foods have achieved success they wouldn’t have had otherwise. To capitalize on the success of its suppliers, Innovative Food plans to launch a program called Food Hatch that will invest equity in small farms and food manufacturers and provide expertise. “We’ve built a team of mentors,” says Sam Klepfish, the company’s CEO. Using its own funds from operations, Innovative Food plans to invest in incubator companies to which it will lend help in areas such as marketing, accounting, retail, food brokerage and website management. “We can handle five to six

a half day per month (paid) to the organization of their choice.

no.

128

Has a

Tampa Bay Steel Corp.

In business for five years, but

HAVEN’T LOST A SINGLE CLIENT.

CHAPLIN on staff.

334

no.

CAST

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

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8

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

GULF COAST 500 No. 213

Mark Wemple

Ed Taylor Construction in Tampa stuck with what it had always done to survive the recession, but drove hard for efficiencies and did more for clients at an earlier stage in commercial renovations. Brian Jackson, president, James Walters, controller, and Mark Weaver, vice president, at the Stonegate Bank renovation in Tampa.

On Site Early

Ed Taylor Construction looked at diversifying and government work when the bottom fell out, but chose to stick with its core strengths, improving efficiencies at every level.

15

’09 ’10 ’11

Source: Ed Taylor Construction

GC

DID YOU KNOW?

429

no.

DMK Associates Inc.

“

“

One of our principals played guitar with Dickey Betts, a founder of

THE ALLMAN BROTHERS BAND.

Before starting Infinity, I gave very serious thought to ROLLING BURRITOS for a living…owning a Moe’s franchise.

INFINITY TECHNOLOGY SOLUTIONS

423 no.

117

20

Year Revenue Change 2009 $20.3 million 2010 $18.5 million -8.8% 2011 $21.0 million 13.8%

including the clients who want to get their project listed and leased, any change order can ruin their profit margin. Unhappy clients are not return clients. Those margins also make it all the more important to get the projects done on time. “Our clients want to get people in and start collecting rent dollars,” Weaver says. Things are picking up. Although Ed Taylor Construction has stayed focused on the Tampa Bay-Sarasota-Fort Myers market, it is venturing out because of increasing work for the discount grocer chain Save-A-Lot. The grocer has been buying old Eckard stores around Florida and renovating them for their needs. Ed Taylor did a couple of the jobs in the Tampa Bay area. The chain was so satisfied, it chose the firm for all of its Florida renovations. Ed Taylor Construction peaked at 120 employees in 2007, fell to a low of 34 at the trough and is now back up to about 50. It made a profit each year through the downturn and has come out without any debt, Walters says, giving executives tempered optimism. — Rod Thomson

LEXJET CORP.

no.

$25 million

Atlanta. But it has always been a standalone company. The Ed Taylor Construction in Atlanta is strictly a residential and unrelated firm, prompting the Florida firm to drop “South” from its name. A major change the company made in its core project management — which added to efficiency — is to bring its subcontractors together before it bids a project. This allows the company to go over the site and check out everything — including crawling through ceilings and pulling things apart, looking in walls and at foundations — to make sure it can make a bid that will not encounter the dreaded change order. And the firm is now a part of projects at a much earlier stage than before the crash. The company is involved early to catch things architects used to catch on site, because architects are not being paid to do on-site visits now. “We’re asked and expected to catch things up front so they don’t become surprises later,” Weaver says. “We don’t like surprises, our clients don’t like surprises. That usually equates to change orders and that is a dirty word in our business.” Now, with tight margins for everyone,

“

Ed Taylor Construction Revenues

“Ultimately, it all came back to what we’d always done well with — what we were doing — and decided to keep doing that.” But while it is doing the same work, it is doing that work far differently. First, the company keeps driving itself to find more ways to save money and do things more efficiently, relentlessly looking for ways to save. “We kept meeting with employees to find anything we could to save money. Anything,” says Mark Weaver, vice president. “As a result, we became a more efficient company. The key for us is to maintain that as we get busier so we don’t lose an advantage.” Walters says the result is the company does more with less: “We could go back and do the kinds of volumes we were doing in ’07 and ’08, three times last year’s, with a substantially reduced staffing level.” As part of the cost savings, the company required 20% pay cuts from every employee, from the top down. “No one was happy about it, but everyone stayed,” Weaver says. Ed Taylor Construction began in Tampa in 1991 as Ed Taylor Construction South, spun off from Ed Taylor Construction in

“

E

d Taylor Construction is another survivor of the construction industry slaughter that followed the retail collapse and recession. But the Tampa company that focuses on interior build-outs, commercial renovations and tilt-wall construction did not do what many others did, such as shift to government work, or broaden their geographic scope. Instead, the company focused on its strengths and began ratcheting up efficiencies and service. It became a more holistic construction manager for clients than it had been in the go-go days. “We considered governmental contracting, diversifying in other areas, maybe hire people with expertise in other areas,” says James Walters, controller.

LexJet has THREE SIMPLE RULES: 1) Have fun; 2) Make money; 3) Don’t get in the way of anyone having fun and making money.

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

9

GULF COAST 500 No. 208

TIGHT WIRE Gulf Coast companies heavily connected to the boating industry had some recession-related troubles. But one business in that category is now in comeback mode.

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Pacer Group Revenues $25 million 20 15 10

Year Revenue Change 2009 $10 million 2010 $14.5 million 45% 2011 $22 million 52%

’09 ’10 ’11

Source: Pacer Group

includes doing more installation on products it already sells, for instance. The firm also assembles more products in-house, so it can expand its margins. Two new business units, moreover, are batteries and e-commerce. On batteries, Swiatkowski says the fact that there are more gadgets out there than ever before means there is a need for more energy. So the company now makes tiny wires battery manufacturers use. Says Swiatkowski: “That business has a tremendous potential for growth.� Even with diversification, Pacer still does a lot of work the marine industry, where it has clients worldwide, from SarasotaBradenton to the Middle East. The company has two other facilities, in addition to its 42,000-square-foot headquarters just east of Interstate 75 in Sarasota. It has a 40,000-square-foot plant in Wauchula, Hardee County, and it also has an office in Fort Lauderdale, where Swiatkowski’s father, Joseph Swiatkowski, founded the firm. The younger Swiatkowski, meanwhile, projects the firm will grow revenues by at

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Rod Millington

Pacer Group President John Swiatkowski has led a turnaround at the Sarasota-based firm. Annual revenues increased 52% in 2011, from $14.5 million in 2010 to $22 million last year. least 20% in 2012, mostly from the recent diversification shift. Nonetheless, the business isn’t without its challenges. For one, wires and cables are essentially commodities, which means the industry is hyper-competitive. Swiatkowski says he constantly seeks an edge in competition against manufacturers from China and Mexico. He finds that edge, usually, in smaller, yet more complicated projects for other domestic manufacturers. Another challenge is instability in buying materials like copper. Swiatkowski says the price of copper and other materials tends

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to increase whenever the Federal Reserve shifts monetary policy to stimulate the economy, such as quantitative easing. That makes running the business more unpredictable, he says. Swiatkowski at least feels better that the economy is on the mend. Says Swiatkowski: “We are reasonably optimistic that if we get into a slowdown, it will be a short one.� — Mark Gordon

VIDEO: To see Pacer at work, visit review.net.

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eing boring pays in John Swiatkowski’s business. That business is manufacturing wire and cable for a multitude of machines and vehicles, from boats to golf carts to industrial floor sweepers. “It’s not very exciting,� admits Swiatkowski, president of the Sarasota-based company, Pacer Group. What is stimulating, however, is the fact that Pacer has made a stellar comeback from the recession. To wit: Annual revenues increased 52% in 2011, from $14.5 million in 2010 to $22 million last year. The firm is now up 120% since 2009, when it had $10 million in sales. The company has 110 employees. Pacer, which focused primarily on products for the marine and boating industry from 1978-2008, hasn’t made it back to pre-recession sales and employee levels — though it’s close. The business peaked in 2006, when it had about 120 employees and $28 million in annual sales. One turnaround key has been the company’s all-out effort to find new business lines. Swiatkowski believed branching out would be a survival priority, given the boating industry shrank by at least two-thirds in the downturn. “We diversified away from marine,� says Swiatkowski. “When people have money they buy boats; when they don’t have money, they don’t.� Swiatkowski says the company’s diversification strategy focused on new work and services it could offer existing clients. That

10

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

GULF COAST 500 No. 460

Rod Millington

David Karins founded Sarasota-based Karins Engineering Group in 1999. The firm had $2.66 million in sales in 2011.

JUST RIGHT

Karins Engineering believes it has finally gotten past the ‘surviving is winning’ stage of the recession. Now it aims for more growth.

Karins Engineering Revenues

2.5 2.0

Year Revenue Change 2009 $2.3 million 2010 $2.36 million 2.6% 2011 $2.66 million 12.7%

’09 ’10 ’11

Source: Karins Engineering Group

GC

DID YOU KNOW?

“494

“

$3.0 million

The firm specializes in civil, structural and mechanical work. “There aren’t many like us in the middle anymore,” says David Karins, founder and president. “There used to be a lot.” But lonely doesn’t mean the firm lacks potential. In fact, annual revenues increased 12.7% at Karins Engineering Group in 2011, from $2.36 million in 2010 to $2.66 million last year. The firm had $2.3 million in 2009 revenues. “I feel good that we are a local company doing well in the recession,” Karins says. “For a while, just surviving was winning.” Moreover, the company is nearly back up to pre-recession employee numbers. It had been down to the low 20s in payroll. Karins, a past Business Review 40 under 40 winner who founded the firm in 1999, partially attributes the growth to a nascent local building industry recovery. “We’re excited to see the new construction market comeback somewhat,” Karins says. Karins adds that the firm puts a premium on customer service, in defiance of industry stereotypes. “Many engineers aren’t that personable,” Karins says, “but

Our name comes from the NAUTICAL TERM ‘First Watch,’ referring to the first shift of the day.

no.

81

no.

First Watch Restaurants Inc.

emphasizing our customer service gives us a leg over the competition.” Karins Engineering has offices in St. Petersburg, Bonita Springs and Fort Lauderdale, in addition to its Sarasota headquarters. Most of its projects are in Florida, but it has worked in other states, including Louisiana, North Carolina and Ohio. Current and past projects include the Sarasota Yacht Club, the Ca d’ Zan Mansion in Sarasota and more than a dozen condominium buildings on Longboat and Siesta Key. The company is also doing work at Dolphin Towers in downtown Sarasota, a condo building with major structural damage. Karins Engineering is the second engineering firm David Karins founded. The first one lasted a few years, before he and a partner split up the company. Karins took some clients, and founded the current business. One of the first employees Karins hired for his firm back in 1999, in an odd twist, was his father, Carter Karins. David Karins actually grew up working for his father’s Pinellas County construction firm.

“

T

he recession-generated metamorphosis in the engineering industry has squeezed firms like Karins Engineering Group. That’s because the industry, especially on the boom-and-bust Gulf Coast, has mostly split in two: On one side there are big firms, like Edmonton, Canada-based Stantec, which acquired Naples-based Wilson Miller in 2010 and now has hundreds of employees statewide. On the opposite side is the small army of engineering firms with one to three employees that dot the Gulf Coast. That leaves Sarasota-based Karins in a relatively lonely spot, with 30 employees.

He started there as an apprentice when he was 14. But that business began to falter in the 1991 recession, and by the later part of the decade, the elder Karins sought work. So David Karins hired Carter Karins to open and run the firm’s St. Petersburg office. The elder Karins didn’t have an engineering degree, however, so he studied under his son for four years. Says David Karins: “I went from being the young punk apprenticing on construction sites for him to him apprenticing for me.” Carter Karins remains with the firm today, though he recently began to scale back his hours. David Karins, meanwhile, faces several challenges in growing the operation into the future. Some, such as a growing list of unpaid accounts receivables, are the headaches companies in most other industries face, too. Karins also says the economy, while better, is nonetheless worrisome. “There’s still a lot of recovery that has to happen in commercial real estate,” he says. “You can still buy many buildings for cheaper than you can build.” — Mark Gordon

HEATHERWOOD CONSTRUCTION CO.

“ 394 We are all

Tim Tebow fans.

MAD MOBILE

no.

Mad Mobile helped Paramount Studios create a mobile Web app to promote the new JUSTIN BIEBER movie.

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

11

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RICHARDSON KLEIBER WALTER ./(,%(5 %87721 ,1&

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,1'8675,$/ 3523(57,(6 )25 6$/( 25 /($6( 34,056 SF Office / Showroom 1502 N Lime Ave, Sarasota

18,000 SF Office / Warehouse 210 Center Ct, Venice

FOR SALE $1,050,000 $30.83 PER SF Also For Lease Call for Pricing

For Lease Call for Pricing

Manufacturing Distribution 3 Phase Multiple / Overhead Doors

Multiple Private Offices, Breakroom, Insulated Warehouse, Recessed Loading Docks!

6,000 SF Office / Warehouse 1599 Apex Rd, Sarasota

5,000 SF Office / Warehouse 6079 Clark Center Ave, Sarasota

3 Phase power / Fenced Storage Yard 18’ Eave Height, Insulated Ceiling, FOUR 14‘ X 14’ Overhead Doors

Drive around truck access. Paved & fenced outside storage / loading area four overhead doors / 1,048 SF of office

FOR SALE $390,000 or Lease

13,250SF Office/Warehouse 4500 Northgate Ct, Sarasota Paved Fenced Storage on 1.18 Ac Loading Dock & Ground Level Loading 1,000 SF Office 20’ Eave Height 3 Phase Power – Ability to Divide

FOR SALE $420,000

5,600 Sq/Ft Office/Warehouse 4410 Independence Ct, Sarasota

3 Phase 600 Amp/Fenced Yard 20’ Eave, 3 over head doors Paint Booth, Zoned Heavy Industrial Lot size is 0.43 Acres / 19,000 SF

For Sale $849,000 For Lease $5.95/SF

For Sale $330,400

4,875 SF / 9,750 SF / 21,875 SF US 301 Corridor Manatee County

7,000 – 14,000 SF Sale / Lease

For Sale or Lease Great Rates! Call Jeff Button For Pricing & Information

New Buildings with 20’ Eave 3 Phase Capable – Storefront Entry

New Shell Warehouse 3210 59th Dr East, Bradenton

20’ Clear Span / 3 Phase Power

7,800 SF Office / Warehouse w/Yard 2083 58th Avenue Circle East 20’ Eave Height Clear Span 3,000 SF of Very Nice Office Zoned HM – Built in 2007

GREAT DEALS! Call for Pricing Jeff Button

7,525 SF & 9,375 SF Office/Warehouse Colan Place in the Fruitville / I-75 Area

23’ Eave Height, 18‘ x14’ Roll-Up Door, 3 Phase, Loading Dock w/Office Area. May be combined to total 16,900 SF.

FOR LEASE $6.50 / SF Gross

For Lease $6.50 / SF Gross

Cheap Rent Flex Space Units Independence Blvd – Northgate

8,093 SF Office/Warehouse 1856 Apex Rd, Sarasota I-75 Corridor

1,440 SF @ $650 / Month Gross 1,680 SF @ $700 / Month Gross 5,760 SF @ $2,400 / Month This Unit Includes 3 Phase & A/C Warehouse

3 PHASE POWER, COVERED LOADING DOCK, & OUTDOOR STORAGE AREA. NEWLY RENOVATED KITCHEN& RESTROOMS

21,525 SF Office / Warehouse 1683 Cattlemen Rd **Frontage**

5,000 SF Free Standing Office / Warehouse I-75 / Fruitville Rd Area

For Sale $25.51/SF

For Lease $4,333 /Month Gross

Multiple Private Offices, Loading Dock, 3 Phase Power, A/C Warehouse/Production Area

3 Phase Power – Loading Well 1.16 Acres with 100’ Frontage

For Sale $370,000

For Sale $549,000

2)),&( 63$&( )25 6$/( 25 /($6( 2,776 SF Office Building on Fruitville 3293 Fruitville Rd Units 103 & 104

Large reception area with built-in reception counter & cabinetry, large open work area, 2 storage areas, 11 Private Offices & kitchenette.

End Unit Potential for use as Medical Office. Unit includes New Tile, a 12’ x 12’ office, a 15’ x 10’ office, open work space. Plenty of Windows!

FOR SALE $300,000 BANK OWNED

FOR SALE $110,000 BANK OWNED

1,772 Sq/Ft Office Space 766 Hudson Ave, Downtown Sarasota

863 SF Office Condo Lakewood Ranch 7365 Merchant Ct, Suite 7

Nicely finished, 2nd level unit with Multiple Private Offices with windows, Large Open Workroom, Reception Area, Receptionist Office, Kitchenette.

Professional Office is FULLY FURNISHED and includes Open Reception Work Area, 3 Private Offices, Computer Server Area, Kitchen/Break room.

For Lease $995 / Month Gross

FOR SALE $124,900

Retail / Office Space Frontage on 12th Street

4,200 Sq/Ft Office Building Free Standing in Lakewood Ranch

1,272 SF & 2,544 SF or 5,000 SF Just off US 301 - Zoned ILW

$10 Per Sq/Ft Gross

Multiple private offices, reception, kitchen, 2 conference rooms & workroom. Zoned PCD

Cheap Office Space Gross Rates

504 SF Office Free-Standing

4,320 SF Office $2,520 / Month 1,440 SF Office $840 / Month 3,360 SF Office 1,680 / Month

For Sale $1,250,000

Remodeled 2 Offices/Reception Kitchenette / Zoned CG

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GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

GULF COAST 500 No. 239 by Mark Gordon | Deputy Managing Editor

REVIEW SUMMARY Business. Florida Business Interiors, Tampa Industry. Office furniture Key. Company has grown rapidly during a severe industry downturn.

Kevin Baker founded Florida Business Interiors in Tampa in 2007. The firm has since grown to $17.5 million in annual revenues.

Mark Wemple

Heavy Lifting

Decimation in the office furniture industry has been widespread. One company, though, more than doubled sales in 2011.

DID YOU KNOW?

JCI began in 1930 by the founder, the current president’s grandfather,

MIXING BLEACH IN A BATHTUB

JCI JONES in his garage. CHEMICALS INC.

cal approach. Says Baker: “We’ve grown very quickly by doing things differently.”

Space transformation

One notable difference between Florida Business Interiors and its competitors is location. Most office furniture operations in the Tampa area, especially the bigger ones with a national or regional presence, are run out of warehouses or facilities in industrial parks. The focus for those businesses is volume. But Florida Business Interiors is in a 5,800-square-foot second floor office in Tampa’s Ybor City. The office is in the Centro Ybor area, in space Baker leases that costs at least 50% more than what he would have paid for a traditional location. Plus, the company spent at least $150,000 in 2010 to transform the space, a former restaurant, into a glistening office and showroom. Built in a contemporary style with balconies ideal for parade

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and people watching, the new office has brick walls, 15-foot high ceilings and raised floors. Most clients and guests end up chatting about the space with the high hip factor, says Baker, before they get into furniture orders. Baker admits the move to Ybor was a bold decision. “We took a 100-year-old building and turned it into a story,” says Baker. “I believe there is already a return on it. Being the new guy in town, it shows people we are legitimate. People could see we are not a fly-by-night.” The space is also something of an office furniture showroom laboratory, where Baker says clients can see how they want their office to look. The build-out included modular walls and energy-efficient lighting, and company officials say it’s the only office furniture dealership facility in the state to earn LEED green building certification. The second difference at Florida Busi-

We STARTED IN A TWO-BEDROOM APARTMENT in 2006 and in 2011 were ranked the third-fastest growing company in Tampa Bay with close to 100 employees across Florida and Georgia.

T-Cellular Inc.

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Office Furniture & Design Concepts, one of the industry leaders in the Fort MyersNaples area, flattened out the past three years. Revenues at the firm were up 2% in 2011, from $10 million in 2010 to $10.20 million. The firm had $10 million in sales in 2008 and 2009. Nonetheless, Office Furniture & Design Concepts President Joe Gammons says the firm is growing again. He projects at least 20% growth in sales this year. A big reason, past the early stages of an economic recovery, is Gammons recently launched two new business units, one for commercial flooring and another for facilities management. The firm also has a new e-commerce division. “The recession,” says Gammons, “has taught us that we can’t only rely on furniture sales.” Florida Business Interiors, meanwhile, now with 12 employees, has been able to withstand the recession with a more atypi-

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lorida Business Interiors employees might sell everything from chairs to desks to cabinets, but their real mission is to deliver clients a lifestyle. “Stuff is just stuff,” says Florida Business Interiors founder and President Kevin Baker. “Once our clients buy from us, it’s the experience that separates us.” The company has certainly done a lot of separating the past few years. After a slight dip two years ago, revenues grew 113.4% in 2011, from $8.2 million in 2010 to $17.5 million. Moreover, sales are up 775% since 2007, when Baker founded the firm and it had $2 million in sales. It’s counterintuitive growth, too, considering the pounding the Gulf Coast office furniture industry took in the recession. “We all got hit,” says Allan Shaivitz with Gulf Coast Contract Furnishings, which does work in Sarasota and Manatee counties. For example, sales at Fort Myers-based

The average age of our employees is 24.

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GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

$20 million 15 10

Year Revenue Change 2009 $9.2 million 2010 $8.2 million -10.9% 2011 $17.5 million 113.4%

5 ’09 ’10 ’11

Source: Florida Business Interiors

ness Interiors, according to Baker, is the company strives to avoid its 15,000-squarefoot warehouse, which is in another location from its Ybor City office. The idea, says Baker, is to only have orders that go straight from the manufacturer to the client, with no storage time in between. Although it doesn’t happen all the time, no warehouse means less handling of the products, less time for deliveries and lower costs. “We are all about anything that can cut waste,” says Baker. Florida Business Interiors specializes in Haworth products, and it also has a catalog of more than 250 styles of office furniture, in a range of prices. The firm will do everything from sell chairs for waiting rooms to art for walls. Clients include St. Petersburg College, State College of Florida in Bradenton and MacDill Air Force Base in Tampa. The MacDill contract, for furniture in the recent renovation of U.S. Central Command, was an especially lucrative project.

‘Took a shot’

A Brandon native, office furniture is Baker’s first and only career. He worked in a showroom one summer when he was 19, and he was hooked. Baker worked in sales for several local firms, moving up to manager at some plac-

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es. In 2006 the owners of Florida Business Interiors in Orlando approached Baker about launching an office furniture operation in Tampa. “I was in my late 40s,” says Baker, “and I took a shot.” Investors with the Orlando Florida Business Interiors loaned Baker startup capital and provided a name and advice. Baker declines to say how much capital he received in the beginning, only that he paid it back by 2010 because of the firm’s rapid growth. The strategy in the early going, says Baker, was to target industries he and his investors thought were somewhat recessionproof, or at least recession-resistant. Two big targets: community colleges, which usually see enrollment spikes in a recession, and the federal government. For the latter, MacDill Air Force Base was a key prospect. Baker quickly realized, however, that knowing the target and getting in front of the target were vastly different tasks. So Baker says he and the sales team literally knocked on doors, cold-calling places like State College of Florida and Hillsborough Community College in Tampa, until they found the decision makers. That diligence paid off in 2011, when the company received a constant stream of orders. So many orders, actually, that one of Baker’s big regrets in the growth surge was he was slow to add employees to handle the extra work. Says Baker: “We had people who were working 80 to 90 hours a week.” He has since added a few employees — though he doesn’t project 2012 will be another year where the firm more than doubles revenues. “We won’t be as good this year, but it will be pretty good,” Baker says. “I don’t have to be No. 1. The third largest is fine with me.”

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Florida Business Interiors Revenues

www.review.net

UPCOMING

CALENDAR OF EVENTS AUGUST 14

BROWNFIELD DEVELOPMENT: Janet Peterson, senior project manager with Bureau Veritas, will be the speaker at a Real Estate Investment Society luncheon.The event will run from 11:30 a.m. to 1 p.m. at the Pelican Preserve Clubhouse at Treeline Avenue and Colonial Boulevard, Fort Myers. Visit reisswfl.org.

AUGUST 20

FLORIDA POLITICS: Florida politics: Political scientist Susan MacManus will speak at a meeting of the Tiger Bay Club of Southwest Florida. 11 a.m. at the Harborside Event Center, 1375 Monroe St., Fort Myers. Cost is $35. For more information visit swfltigerbay.org.

AUGUST 26

THE DONALD: The Republican Party of Sarasota will honor Donald Trump as the 2012 Statesman of The Year at an event that begins 6 p.m. at The Ritz-Carlton, Sarasota, 1111 Ritz-Carlton Drive, Sarasota. Cost is $110 if purchased before Aug. 1. A VIP reception with Trump is available for an additional cost. For more information visit sarasotagop.ticketbud.com/statesmantrump.

SEPTEMBER 17

RAGIN’ CAJUN: Democratic political pundit James Carville will be the keynote speaker at the Southwest Florida Tiger Bay Club September meeting.The event will start 6 p.m. at the Hyatt Regency Coconut Point, 5001 Coconut Road, Bonita Springs. Visit www. swfltigerbay.org.

SEPTEMBER 19

Kevin Baker, president, Florida Business Interiors: “Stuff is just stuff. Once our clients buy from us, it’s the experience that separates us.”

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FASHION BUSINESS: Rhonda Shear, creator of the Ahh Bra and Rhonda Shear Intimates, and Kimberly Hendrix, creator of k.hendrix clothing, will speak at The Greater Tampa Chamber of Commerce’s Women’s

Series Luncheon.The event will start at noon at the Sheraton Tampa Riverwalk Hotel, 200 N. Ashley Drive,Tampa.The cost is $50 for members and $60 for others. For more information visit tampachamber.com.

SEPTEMBER 21

ECONOMIC OUTLOOK: The Economic Development Corp. of Sarasota County will present an overview of regional economic conditions and bestow leadership awards.The event runs 11:30 a.m. to 1:30 p.m. at the Hyatt Regency Sarasota, 1000 Boulevard of the Arts, Sarasota. Cost is $65. For more information visit edcsarasotacounty.com.

SEPTEMBER 28

SMALL BUSINESS AWARDS: The Greater Tampa Chamber of Commerce will hold its annual Small Business of the Year Awards dinner starting at 5:30 p.m. in Tampa Convention Center at 333 S. Franklin St.,Tampa. For more information visit tampachamber.com.

OCTOBER 13

CAMP OUT: Florida’s first BarCamp and CodeCamp will host more than 1,000 software developers, programmers and technology entrepreneurs for an all-day technology event at the University of South Florida. 4202 E. Fowler Ave.,Tampa.The event is free. For more information visit tampacodecamp. com or BarCampTampaBay.org.

OCTOBER 20

RISE TO THE PINNACLE: The Lee Building Industry Association will recognize top performers in the residential and commercial construction industries at an awards ceremony.The Pinnacle Awards will start at 6:30 p.m. at the Hyatt Regency Coconut Point Resort and Spa, 5001 Coconut Road, Bonita Springs. Cost is $90 per person or $85 per person for groups of six or more. For more information visit bia.net.

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Florida’s Long-Term Care Ombudsman Program needs volunteers to join its corps of dedicated advocates who protect the rights of elders who live in nursing homes, assisted living facilities and adult family care homes. The program’s local councils are seeking additional volunteers to identify, investigate and resolve residents’ concerns. Special training and certification is provided.

or visit the program’s website at ombudsman.myflorida.com.

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All interested individuals who care about protecting the health, safety, welfare and rights of long-term care facility residents—who often have no one else to advocate for them—are encouraged to call toll-free

14

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

GULF COAST 500 No. 63 by Rod Thomson | Editor-at-Large

All about the model Florida Medical Clinic is growing in doctors, services and revenues, but its top executive sees even more opportunities with Obamacare.

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he forces driving the merger of four small practices into the Florida Medical Clinic in northern Tampa Bay 19 years ago are the same forces that continue to drive its growth today. The continuing complexity of the business side of health care makes it harder for doctors to be in single practices and grow as a business. Most doctors are illequipped to handle dealing with insurance companies, HMOs, Medicaid and Medicare, taxes and regulations. “Doctor’s are not well trained to handle the processes,” says Joe Delatorre, CEO of the Wesley Chapel-based company. And, he says, they miss out on economies of scale, negotiating leverage with vendors, and the ability to generate revenue beyond the immediate physician practice. Hence, Florida Medical Clinic was birthed with nine doctors in REVIEW SUMMARY Zephyrhills and Dade City seeing Issue. Dealing with a maybe a hundred patients daily. rapidly changing industry Today it has 135 doctors and nearIndustry. Health care ly 1,000 employees, sees 4,000 patients per day throughout TamKey. Create a business pa Bay and generated $147 milmodel beneficial to both lion in revenue last year. doctors and patients. The key to the company’s success is the model it has created for doctors and other health care providers. “This is completely owned by the doctors. And we want every doctor to be an owner in the process,” Delatorre says. It is Florida Medical Clinic’s model that Mark Wemple attracts doctors — the company rarely Joe Delatorre, CEO of Wesley Chapel-based Florida Medical Clinic, has overseen the clinic’s growth from nine doctors to 135 doctors and seeks expansion opportunities. nearly 1,000 employees in the northern Tampa Bay area. He is confident the company is well situated for Obamacare and the increasingly “I get calls every week from physicians complicated business side of health care. interested in joining our group. The problem one doctor has over here is the same Model growth And the Florida Medical Clinic is a multi- physician — no small benefit. problem the other doctor has over there,” Patients and doctors both like the digital The Florida Medical Clinic model is specialty company that is fully integrated, Delatorre says. “Once you understand the pretty simple in concept. as opposed to single-specialty firms. Dela- patient records, and the trend in health care model and have the system, you can repliFirst, give physicians an organization torre believes the multi-specialty compa- is moving toward more of them. The fedcate it pretty easily.” where they are among equals, working nies are the strongest in dealing with what eral government is now offering monetary And that is important because the busi- cooperatively with other doctors in oth- is coming. enticements to get practices to do this — ness of health care is changing faster than er specialties. Then give them an equity Further, the company was at the fore- $44,000 per health care provider. But most the medicine itself, and often health care stake in the company, provide professional front of creating unified patient records practices remain paper-chart oriented and providers are left in the swirl. management for the business side and of- in a digital format seven years ago. “Every are only beginning to make the change. “The industry is moving at a very high fer further revenue opportunities through doctor gets to see everything going on with Florida Medical Clinic makes the entire rate and competitive issues are high,” he ancillary services such as ambulatory care his patient with every other doctor,” Dela- process all turnkey for doctors, a huge atsays. “It’s only getting more complicated.” torre says. It is almost hassle-free for the traction, particularly for small practices centers and diagnostic labs.

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We are DOGFRIENDLY and a green-certified business.

Mercedes Medical

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DID YOU KNOW?

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ConceptBAIT Global Events + Floral Design Group

DATACOMM NETWORKS INC. We’ve been in business longer than MICROSOFT.

CONVERGENCE CONSULTING GROUP

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FLORIDA NATIVES.

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

$150 million 130

Year 2009 2010 2011

Revenue Change $119 million $130 million 9% $147 million 13%

110 ’09 ’10 ’11

Source: Florida Medical Clinic

struggling with the non-medical overload of work. “If doctors can find a platform in which they are fairly treated, they have an equity platform, and on top of that ... you have a professional management team with a 20year track record, you have a formula for success,� Delatorre says. That has resulted in continual interest from physicians wanting to join. “We get a lot of opportunities. The question is which doors do we open?� he says. Florida Medical Clinic has 19 medical facilities in North Tampa, Carrollwood, Town N’ Country, Wesley Chapel, Land O’ Lakes, Zephyrhills and Dade City. The company would look at nearby places such as Brandon and Trinity, but has passed on opportunities from St. Petersburg so far because it is too far from its other offices. In the integrated model of health care, proximity is important for patients. When someone needs to be referred from their general practitioner to a specialist, they want it to be nearby because they likely live near their doctor. “We’re conscious of not opening doors in areas where we don’t have a strategic interest,� Delatorre says.

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Government care impacts

Florida Medical Clinic is bracing for implementation of the Affordable Care Act, commonly known as Obamacare, but sees plenty of opportunities. “This is a massive piece of legislation that will affect every American,� Delatorre says. “I think a lot of it is very good. I love the benefit enhancements where you can’t exclude pre-existing conditions.� In fact, there are portions of the law that will surely benefit the business side of health care as it pushes more dollars into the industry. Speaking carefully as an executive of a large medical provider, Delatorre says the overall goal of the law is to make sure everyone has health insurance. A doctor’s office visit is a fraction of the cost of an emergency room stop. “When dealing with population management, if you don’t have health insurance, you end up accessing health care at the most expensive place, in the ER,� he says. “You’ve already lost the game if that is going on.� So that philosophy alone is good for the Florida Medical Clinic, which provides care before the ER. In the details of the law there is an element on which the company has already moved. Obamacare creates accountable care organizations, or ACOs, which are contracts that health organizations can have directly with Medicare. It’s based on the Medicare recipients for whom a health care firm is currently caring. A company such as Florida Medical Clinic goes through the process to get approved and signs a three-year contract with Medi-

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Florida Medical Clinic Revenues

www.review.net

Joe Delatorre, CEO, Florida Medical Clinic: “The industry is moving at a very high rate and competitive issues are high ‌ It’s only getting more complicated.â€?

care, agreeing to do three things: improve the quality of care to the Medicare recipients on 33 measures laid out by the feds; create happy Medicare members, who will be surveyed to get their opinions; and reduce the costs of care. If a company is successful at these three things, the savings will be split 50-50 between the company and Medicare. “That’s a very big change,� Delatorre says. About 150 ACOs have been approved nationwide, three in the Tampa Bay area, including the Florida Medical Clinic, Reliance Healthcare Management Solutions in Tampa, and Allcare Options in Parrish. “You have to be organized, have the infrastructure, have the management, have the care teams to manage this,� Delatorre says. “I think our group is taking a leadership position in that.� The company is hiring case managers to be a link between doctors and patients to ensure that care is improved and a patient’s experience is a good one. “We’re adding what we call care coordinators to our managed care population,� he says. “If you can do that it is much more inexpensive than to deal with the chronic episode that occurs.� The U.S. Supreme Court ruled that states cannot be required to expand Medicaid coverage under Obamacare, and Gov. Rick Scott has said Florida will not. Delatorre does not see significant impact either way on his company. However, he sees real possibilities for his company in the portion of Obamacare that requires coops to be developed in every state. The coops are intended to cover people who do not qualify for Medicaid but also do not have any health insurance. “We will more than likely participate with coops out there,� he says. “Anytime you can create more access to your provider, that enhances us and is good for the patient.� Delatorre has been the right man at the helm for Florida Medical Clinic. A hospital administrator by trade, he was tapped as the first, and still only, CEO of the company at its formation in 1993, and

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RECIPE FOR SUCCESS The merger of four small medical practices in 1993 into the Florida Medical Clinic was driven by five major reasons. They remain the reasons for its continued growth today. • To meet the need for professional management to run the business side of the health care company and free up doctors to be doctors. • To generate economies of scale. How can the practices pool together resources and do what they were doing more cost effectively? • To gain leverage in negotiating contracts. Individual physicians are limited in their ability to negotiate. But as they build size and volume, they gain leverage with suppliers to cut costs. • To get a competitive advantage. Dade City and Zephyrhills had a lot of health care as blue collar, retiree communities. But the market was unorganized for services. The doctors believed someone was going to pull together services and decided to do it themselves. • To develop ancillary services and generate revenue beyond the normal physician and professional services. So now there are the ambulatory centers, diagnostic laboratories and so on that create more revenue for the company. has guided its growth. A Florida native and University of Florida graduate, he had previously run Pasco Regional Medical Center in Dade City, followed by what is now St. Joseph’s Women’s Hospital in Tampa. He left St. Joseph’s to put together the Florida Medical Clinic, choosing it over an offer to run a hospital in Texas. He expects to see it through: “My job as CEO of this company is to position this company to survive and strategically be in the right place at the right time to keep us moving in the right direction.â€?

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16

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

Gambling plans multiply as battle heats up

The fight over legalizing gambling in Florida on a scale that could one day rival Las Vegas is moving into high gear. After failing to get their proposal out of a House committee in February, gambling interests are preparing new deals while anti-gambling forces are also mounting their campaign. Las Vegas-based Boyd Gaming Corp., which runs casinos across the nation, announced in its earnings statement that it has a deal with Sunrise Sports Entertainment, the operators of the BankAtlantic Center, to possibly develop a casino next to where the NHL’s Florida Panthers play in Broward County. The agreement involves 90 acres of unde-

veloped land. The BankAtlantic Center is the largest indoor arena in Florida, hosting more than 200 events annually. Plus, it is located next to Sawgrass Mills, the sixth-largest shopping mall in the country. It’s been considered a prime spot for a major casino venue. The Malaysia-based Genting Group, which was the primary proponent of expanded casinos last session, has given $600,000 to New Jobs and Revenue for Florida, a political action committee pushing a 2014 statewide referendum on the issue. Genting also has spent $500 million compiling land in downtown Miami for a $3.8 billion casino operation if non-Seminole

CORPORATE REPORT

casinos are legalized in Florida. This comes after news that the Florida Seminole Indian Tribe may get an early jump on renewing its gambling pact with the state. The pact gives it exclusive rights to the most lucrative table games that the big Vegas-style casinos need. Legislative leaders want to extend the pact well beyond 2015 — a move that would block expanding gambling in South Florida, Tampa or elsewhere. Meanwhile, No Casinos Inc. isn’t waiting for Genting, Sands, Boyd or any other big players pushing casinos in Florida to get momentum. The anti-gambling group has already put ads out in South Florida that say Vegas is tops in the country in unemployment, violent crimes, car theft, divorce, robberies and foreclosures and ends by saying, “what happens in Vegas should stay in Vegas” — a play on the popular Vegas ad. No Casinos Inc. is also attempting to bring attention to Genting’s extended involvement in Miami-Dade legislative races. According to the Las Vegas Review-Journal, the intense interest in South Florida as a casino destination has lured every major Nevada-based casino company to Florida to look at the possibilities. It is estimated that just the South Florida market

by Sean Roth | Real Estate Editor

Roper Industries’TransCore receives Texas toll contract The Texas Department of Transportation awarded TransCore, a unit of Sarasota-based Roper Industries, a contract for the integration and maintenance of the Texas statewide toll systems. The contract is to develop, install, integrate, test and maintain all of the toll systems’ new open-road tolling and cash-collection systems deployed throughout the state and maintain all existing operations. Harrisburg, Pa.-based TransCore was reportedly selected based on its proposed solution, technology, qualifications and price. TransCore currently oversees the maintenance and operations of more than 30 individual toll collection systems across the country, making it the largest single provider of toll maintenance services in the United States. It has installations in 46 countries.

Naples Soap Co. reaches deal with Kameyama Candle House

Naples Soap Co. has finalized an exclusive marketing and distribution agreement with the Kameyama Candle House. The deal will secure retail placement of Naples Soap’s all-natural and organic bath and skincare products throughout Japan. Japan is the world’s largest per capita consumer of skin care products. Officials for Naples Soap say the timing of the rollout coincides with signs that consumer spending is helping to fuel a rebound in Japan’s economy. Founded in 1927, Kameyama Candle House, Japan’s largest domestic candle

manufacturer, is positioning Naples Soap Co. as a cornerstone brand for its five candle houses, as well as the national launch of more than 20 store-within-a-store locations through 2013. “We are thrilled to be offering our allnatural bath and skincare products to the people of Japan,” Deanna Renda, founder and CEO of Naples Soap Company, says in a release. “We could not have chosen a more revered company than Kameyama Candle House to partner with on this endeavor.”

St. Petersburg’s ALPS South wins patent infringement suit

St. Petersburg-based ALPS South LLC won a recent federal patent infringement court trial against Ohio Willow Wood Co. Ron Christaldi of Shumaker, Loop & Kendrick LLP represented ALPS South LLC. The lawsuit, filed in 2008, began a fouryear medical device patent infringement battle between the two competitors. The jury found that Ohio Willow Wood made 13 products that infringe ALPS’ patent and awarded ALPS just less than $4 million in damages. The jury also found that the infringement was willful, which permits the judge to consider enhancing the damage award up to three times the jury-awarded amount. Based on the verdict, ALPS is seeking an injunction against future infringement, which could result in as much as $20 million annually to ALPS. “This victory obviously has significant ramifications for ALPS, but it also could have a remarkably positive economic impact in Tampa Bay,” Christaldi says. ALPS develops and manufactures advanced gel-based products for prosthetics, orthotics, silicone and patient care uses. Christaldi is the chair of the health care practice group of the Tampa office of Shumaker, Loop & Kendrick.

could surpass the Vegas strip in annual revenues with $6 billion. A big part of the push for Miami-Dade and Broward counties is not just the 6 million people who live in the three-county area or American vacationers, but the tourists that are attracted from Latin America. Tapping that market on a major scale would be hugely lucrative for the gambling companies and not a prospect on which they are expected to easily give up. But the problems facing the gambling interests are two-fold. First, there is significant moral opposition to it in the state — including from those who believe Florida has always aimed at the family-oriented tourist. Casinos appear to be the antithesis of that and the fear is they could undermine the state’s reputation as a family destination. Second, February’s defeat also revealed an array of powerful Florida financial interests opposed to plans for casinos. Those included Disney Corp., and the Seminole Indian Tribe, which already operates seven casinos in the state in an exclusive pact and opposes the competition.

Environmental regulations on hold until after elections

The pending election has created a reprieve for businesses

looking to deal with the federal Environmental Protection Agency’s strict water runoff rules for Florida. The rules, which were only aimed at Florida when enacted by the EPA three years ago, made environmental organizations happy but businesses and municipalities terrified. Some put the costs of implementation in the billions and feared a detrimental impact on the state’s economy. But implementation of the rules has been delayed until January — after the presidential elections — and environmentalists are upset. But they are fighting political realities. “Issuing more regulations now would not help dispel the perception that President Obama’s administration is ‘antibusiness,’” John Graham, former head of the Office of Information and Regulatory Affairs for the White House under George W. Bush, told the Associated Press. Graham also pointed out that there are many other regulations that are waiting until after the November election for implementation. But not everyone is willing to wait. The Florida Audubon Society filed legal petitions July 27 to force the South Florida Water Management District to enforce strict legal regulations on phosphorous levels in the Everglades. That will go before an administrative judge.

United Insurance Holdings adopts poison pill shareholder plan

The board of directors of St. Petersburgbased United Insurance Holdings Corp. has adopted a shareholder rights agreement as a poison pill against an unwelcome acquisition. The board declared a dividend of one preferred share option for each outstanding share of the company’s common stock. If a person or company acquires 20% of the company’s stock and the board invokes the plan, then every other shareholder may, for $27, purchase shares of United’s common stock with a market value of $54. If the company is acquired or merged the non-acquiring shareholders are entitled to acquire $54 worth of the acquiring company’s stock for $27. “The rights are designed to enable all United shareholders to realize the full long-term value of their investment and to provide for fair and equal treatment of all shareholders in the event that an unsolicited or unfair attempt is made to acquire United,” the company wrote in a press release.

Dais Analytic shareholder finances debt repayment

Tampa-based Dais Analytic Corp. has obtained $2 million in financing from a longtime shareholder of the company. The proceeds were used to repay an outstanding secured promissory note held by Platinum-Montaur Life Sciences LLC, and the remainder was used for the company’s working capital needs.

Walter Investment Management grows credit line by $45 million

Walter Investment Management Corp. of Tampa completed an amendment to its line of credit, which increased the line by $45 million to $90 million. The revolving line of credit is used to fund the company’s working capital needs. Walter Investment Management Corp. is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets.

Burger 21 franchise opening New Jersey location

Burger 21, a new restaurant concept from the owners of The Melting Pot Restaurants Inc., has signed a franchise deal to open a new restaurant in Voorhees, N.J. The new location is scheduled to open in spring 2013. Following the opening, the burger franchise will have a total of 10 units. As a current franchisee of Burger 21’s affiliate concept, The Melting Pot, Charlie Haney, along with business partners Curt Wunder and Mike Astuto, decided to expand upon their portfolio. Haney became a Melting Pot franchisee in Atlantic City in 2006 and was named the “Melting Pot Franchisee of the Year” in 2010. “Charlie and his team are tremendous ambassadors of The Melting Pot brand, and we strongly believe the same attributes that make them successful with The Melting Pot will position them for success with our new better burger franchise concept, Burger 21,” Dan Stone, vice president of franchise development for Front Burner Brands, which manages both brands, says in a press release. Since February, the burger franchise has signed four agreements to develop a total of six franchised units in the Atlanta, Orlando, and Voorhees, N.J. That is in addition to the development of two more corporate-owned locations in the Tampa Bay area for a total of 10 franchised and company-owned units.

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

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COMMERCIAL REAL ESTATE SARASOTA-MANATEE

by Sean Roth | Real Estate Editor

Sarasota developer Starling buys land for IRISS HQ

17

Kolb says. “The buildings need a bit of freshening up, but there wasn’t any deferred maintenance.� Kolb says the transaction was a 1031 tax-deferred exchange. Kolb says that while the vacancy is high, the property has a lot of potential given its location near Interstate 75.

California investor group buys GPS Industries building BUYER: EDB LLC, Lookout Mountain, Ga. SELLER: JAC Investment Holdings LLC PROPERTY: 1074 N. Orange Ave., Sarasota PRICE: $2.9 million PREVIOUS PRICE: $1.85 million, October 2009 ATTORNEY ON DEED: David H. Rosenberg PL,

Sarasota

IRISS rendering BUYER: IRISS Lakewood LLC (principal: Fred Starling), Sarasota SELLER: Lakewood Ranch Commerce Park LLC PROPERTY: 10306 Technology Terrace, Bradenton PRICE: $1.01 million TITLE FIRM ON DEED: University Title Services, Lakewood Ranch

PLANS, DESCRIPTION: Sarasota contractor and real estate investor Fred Starling purchased 4.23 acres in Lakewood Ranch Business Park for $1.01 million. Starling’s construction company, Fred M. Starling Inc., is developing a 32,000-square-foot headquarters and manufacturing facility on the site for IRISS. The new building will feature office, administrative and training space and 18,000 square feet of production space. IRISS makes infrared windows for inspecting electrical conductors and circuit parts. The firm expects to occupy the new space in May 2013. Manatee County commissioners

awarded IRISS $12,000 in performance based incentives for the new building and $6,393 to cover its transportation impactfee mitigation. Florida also committed $48,000 based on the firm’s projected hiring and capital investment. The purchase entity IRISS Lakewood LLC mortgaged the property to American Momentum Bank for $3.8 million.

Texans buy flex buildings in 1031 investment BUYER: Homeport LP, Midland, Texas SELLER: Fifth Third Bank PROPERTY: 700, 710, 720, and 726 Commerce

Drive, Venice PRICE: $1.58 million PREVIOUS PRICE: $242,300, August 2000 and $272,300, February 1998 LAW FIRM ON DEED: Zimmerman Kiser & Sutcliffe PA, Orlando PLANS, DESCRIPTION: A Texas couple purchased four flex buildings, a total of 56,307 square feet, in Sarasota County

Interstate Business Center for $1.58 million. The price equated to $28 per square foot. Fred Kolb and Jim Garinger of Colliers International Southwest Florida handled the transaction. Most of the buildings feature office space in the front and warehouse space behind. The property also includes 6,000 square feet of undeveloped interior space without HVAC service and another 10,000 square feet of largely undeveloped space with HVAC. Two of the buildings were built in 1998, and the other two were built in 2002 and 2004. Tenants include shopping cart maintenance company Jimco Maintenance, a management office for Walgreens Co. and air conditioning and heating service company Mahle Inc. Altogether the buildings were 59% occupied at the time of the sale. “Since it closed one of the tenants has moved out, so it’s closer to 40% occupied,�

PLANS, DESCRIPTION: A California investment entity purchased the 31,796-squarefoot GPS Industries building for $2.9 million. The price equated to $91 per square foot. Constructed originally to house Westwater Construction Inc., the building features six doors, a fenced yard and rail access. GPS Industries LLC specializes in the production and servicing of GPS-enabled wireless golf course management systems. It has more than 10 years remaining on its building’s lease. The two-story building was sold as a passive triple-net leased investment. GPS Industries is responsible for utilities, building upkeep, insurance and property taxes. Ricardo Ruiz del Vizo of Keller Williams Commercial International on St. Armands Circle handled the transaction. The transaction was done as part of a 1031 tax-deferred exchange for property that the investment group sold in California. Ruiz says the sale just continued to demonstrate the strength of the Sarasota area as a commercial investment for buyers worldwide.

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GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

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COMMERCIAL REAL ESTATE LEE-COLLIER-CHARLOTTE by Sean Roth | Real Estate Editor

CoreStates Capital Advisors buys Sundial Beach & Golf Resort ment, financial planning and private equity placement to institutions, endowments and foundations.

Minto Communities buys Naples’ Sabal Bay

1451 Middle Gulf Drive, Sanibel BUYER: Sanibel Sundial Partners LLC (Corestates Realty Group LLC), Newtown, Pa. SELLER: BRE/Sundial Owner LLC PROPERTY: 1451 Middle Gulf Drive and additional property on Middle Gulf Drive, Sanibel PRICE: $2.3 million PREVIOUS PRICE: $7 million, October 1998 (includes multiple parcels) LAW FIRM ON DEED: Akin Grump Strauss Hauer & Felt LLP, Dallas

PLANS, DESCRIPTION: An affiliate of CoreStates Capital Advisors LLC purchased the 407-unit Sundial Beach & Golf Resort on Sanibel Island. The Lee County Clerk of Court reports that the CoreStates Capital Advisors affiliate, Sanibel Sundial Partners LLC, purchased 1451 Middle Gulf Drive and two additional lots on Middle Gulf Drive in Sanibel for $2.3 million. CoreStates Capital Advisors has announced plans to refurbish the gulf-front resort condominium. The firm says it plans to upgrade the resort buildings’ exterior, public space, food and beverage outlets, banquet facilities, pool, fitness center, lobby and front desk areas. The re-

Etc… • PCR Group LLC leased 2,500 square feet of industrial space at 14261 Jetport Loop, Unit 2, Fort Myers from Swan FM LLC. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates of Naples-Fort Myers handled the transaction. • Davesway Consulting LLC leased 3,939 square feet of industrial space at 7800 Drew Circle, Suites 19 and 20, Fort Myers from Carroll Partnerships LLC. Bob Johnston, Jerry Messonnier, Derek Bornhorst and Charles Jans of Lee & Associates of Naples-Fort Myers handled the transaction. • Lennox Industries Inc. leased 26,668 square feet of industrial space at 1850 Ortiz Ave., Suite 130, Fort Myers from East Group Properties LP. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates of NaplesFort Myers handled the transaction. • Accent Kitchen & Bath Inc. leased 3,000 square feet of space at 2304 Bruner Lane, Fort Myers from Gulf Paradise Corp. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates of Naples-Fort Myers handled the transaction. • Premier Design Solutions leased 3,600 square feet of space at 24951 Old 41 Road, Bonita Springs from Paul Boyce. Joshlyn Steele, Chuck Smith and Carlos Acosta of Lee & Associates of Naples-Fort Myers handled the transaction. • Lemac LLC purchased a 2,200-square-foot commercial building at 1442 SE 16th Place, Cape Coral from James and Vickie Gelardi for

CoStar

sort, which occupies an 8.5-acre site, will have its pool complex upgrade with a remodeled pool slide and kid-friendly water features. “The opportunity to acquire the beautifully located resort and realize its potential is exciting,” William Spiropoulos, president and CEO of CoreStates, says in a press release. “We have assembled a strong team to lead the management and renovation and have confidence in the potential of a new Sundial Beach Resort.” CAM Hospitality Advisors & Management has been hired to manage the property. The property currently features five swimming pools, a fitness facility, game room, nature center, 12,000 square feet of event space, tennis courts and access to an 18-hole golf course. According to property records, an affiliate of Blackstone Real Estate Acquisitions V LLC last purchased the resort for $7 million in October 1998. That sale included multiple parcels. CoreStates provides wealth manage$205,000. James B. McMenamy of Re/ Max Realty Group handled the transaction. • Laker Software leased 2,351 square feet at 17595 S. Tamiami Trail, units 106 and 107, Fort Myers from Alico Lakes Commons LLC. Michael Frye of Frye Commercial Group, Re/Max Realty Group handled the transaction. • Dakota Leasing Co. purchased 5,580 square feet of industrial flex space at 4651 Mercantile Ave., Naples from Zip-Dog LLC for $489,000. William Gonnering of Investment Properties Corp. handled the transaction. • Securitas Security Services USA Inc. leased 2,000 square feet of office space at 14060 Metropolis Ave., Fort Myers. Adam Palmer and Michelle Hoffmann represented the landlord. • GRE Holdings LLC purchased a 1,720-square-foot building at 906 S.E. Ninth Terrace, Cape Coral from MB REO-FL Mixed LLC for $110,000. Bob Johnston, Jerry Messonnier and Derek Bornhorst of Lee & Associates of Naples-Fort Myers represented the seller. • Robert Adamski purchased a 0.40acre parcel at 947 Country Club Blvd., Cape Coral from MB REO FL Retail LLC for $55,000. Chuck Smith, Richard Clarke and Carlos Acosta of Lee & Associates of Naples-Fort Myers handled the transaction. • Green & Clean Inc. leased 2,615 square feet of space at 17031-1 Alico Commerce Court, Fort Myers from Palm Royale Properties LLC. Bob White, CCIM of Lee & Associates of NaplesFort Myers represented the landlord. • GMA Architects and Planners is finalizing the design and planning services for the new Harlem Heights Cul-

Coconut Creek-based Minto Communities LLC is buying the 2,300-acre planned Sabal Bay community in South Naples. Minto Communities agreed to acquire the property between U.S. 41 and Dollar Bay near Fifth Avenue from Collier Enterprises by the end of the year. Financial terms and the schedule for the take down were not disclosed. Collier Enterprises has owned the property for decades and recently completed the comprehensive permitting and planning process for a 1,600-unit residential development. Those entitlements will transfer to Minto Communities, according to Minto Florida President Michael Belmont. “We’ve been actively looking for land in Naples for the last year,” he says. “We’ve been in discussions with Collier Enterprises for the past six months about acquiring the property from them. They’ve been great stewards of the land, and we respect their input and vision for the property.” Minto Communities plans to set aside 1,300 acres for a nature habitat and a river system. Along with miles of walking and jogging paths, the builder expects to develop a 16-acre community center, called the Resident’s Club, with gathering areas, a swimming pool, tennis courts and fitness and health-related facilities. Land development work is scheduled to start in early 2013 and new model homes should open in late 2013. “At this point, we are going to build the [homes on the] property on our own,” Belmont says. Minto Communities has been con-

Harlem Heights_Rendering tural Arts and Community Center to serve the children and families in the Harlem Heights neighborhood in Fort Myers. The Harlem Heights Community Center is a 13,000-square-foot multipurpose facility on five acres at 15570 Hagie Drive, Fort Myers. The Harlem Heights Cultural Arts and Community Center will feature a 250-seat performing arts center, 6,000-square-foot educational wing, commercial/training kitchen and grand circular lobby for exhibits and receptions. Exterior features will include an outdoor amphitheater, walking and biking paths with a pedestrian bridge to connect the property to an athletic complex across the canal that bisects the neighborhood. Owen-Ames-Kimball Co. is the construction management firm for the project. • Ten Mile Canal LLC purchased a 2,050-square-foot office condominium at 1850 Boy Scout Drive, Unit A103, Fort Myers from Mark A. Reynolds for $155,000. The condominium will serve as the office of Assisting Hands Home Care. Brandon Delanois of CRE Consultants represented the buyer and Alex Ancefsky of Amerivest Realty of Lee Island Coast represented the seller. • Xin Wang and Mei Gao of A Asian Massage leased 2,400 square feet of retail space at 10964 S. Cleveland Ave.,

structing homes in Florida for more than 34 years and is part of the family-owned Minto Group. Minto Communities is currently developing and building in Naples, Tampa Bay, Orlando, the Palm Beaches and southeast Florida.

1800 Paulson Drive, Port Charlotte

Charlotte County government buys Paulson building for fleet BUYER: Charlotte County, Port Charlotte SELLER: Murrieta Dolphins LP PROPERTY: 1800 Paulson Drive, Port Charlotte PRICE: $770,000 PREVIOUS PRICE: $650,000, December 2002 ATTORNEY ON DEED: Derek Rooney Esq., Port

Charlotte

PLANS, DESCRIPTION: Charlotte County purchased an 18,000-square-foot warehouse/distribution building north of El Jobean Road for $770,000. The price equated to $43 per square foot. The building features two dock-high doors, fenced outdoor storage and an acre of excess land. Charlotte County acquired it to relocate its government vehicle operations from a 15,000-square-foot leased facility in Punta Gorda. “The county-owned facility was heavily damaged by Hurricane Charlie in 2004,” says Paul Payette, senior division manager of real estate services for Charlotte County. “We’ve been searching ever since for a suitable replacement building. One of the tougher requirements is it had to be taller than 24 feet, and this building has minimum height of 28 feet.” The move to the Murdock area will help to centralize the department in the county. It will also offer fleet operations more land. After some minor retrofitting of the Paulson building, fleet operations are scheduled to relocate in September or October. Fred Kolb and Jim Garinger of Colliers International Southwest Florida handled the transaction.

Fort Myers from Page Field Plaza LLC. Bill Young of CRE Consultants represented the tenant and William Mankin of Colliers International represented the landlord. • Jeff Hellickson purchased a 1,785-square-foot office/retail condominium at 2814 Lee Blvd., Unit 5, Lehigh Acres from Bhojam Again LLC for $150,000. The transaction was done as a short sale. Paul Kalka of the Boback Commercial Group handled the transaction. • Bond Group Holdings purchased a 1,500-square-foot office/warehouse condominium at 4776 Radio Road, unit 801, Naples from PNC Bank NA for $82,000. Theresa Blauch-Mitchell of the Boback Commercial Group handled the transaction. • D.R. Horton has selected One of a Kind Design Inc. as the interior design firm for its model home at Chiasso, a village of 59 single-family homes in Fiddler’s Creek. •Health Care Network of Southwest Florida leased 6,469 square feet of office space at 3520 Kraft Road, Naples from Manhattan Construction (Florida) Inc. Clint Sherwood of Investment Properties Corp. handled the transaction. • Tavbro LLC purchased a 4.36-acre parcel at Socorro and Aqui Esta drives in Punta Gorda from Florida Community Bank for $210,000.The site was originally planned for 65 multifamily residential units and is located within walking distance to the Punta Gorda Nature Park and St. Andrews South Golf Club. Randy Thibaut and William Rollins of Land Solutions Inc. handled the transaction.

GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

www.review.net

19

COMMERCIAL REAL ESTATE TAMPA BAY by Sean Roth | Real Estate Editor

Shoppes on Sand Key sells for $9.1M ATTORNEY ON DEED: Bryan W. Sykes Esq.,

Tampa

CoStar

1261 Gulf Blvd., Clearwater BUYER: RNJ Sand Key LLC (principals: Nissan

and Benjamin Hamuy), Boca Raton SELLER: D.A. Bennett Co. PROPERTY: 1261 Gulf Blvd., Clearwater PRICE: $9.1 million PREVIOUS PRICE: $5.98 million, December 1999 LAW FIRM ON DEED: Macfarlance Ferguson & McMullen, Clearwater PLANS, DESCRIPTION: Nissan and Benjamin Hamuy of Boca Raton purchased the 40,000-square-foot The Shoppes on Sand Key retail center for $9.1 million. The price equated to $228 per square foot. Mark Klein and Steven Klein of Klein & Heuchan Inc. handled this transaction. The retail center was 98% occupied at the time of the sale. Tenants include The Columbia Restaurant, Backwaters on Sand Key, and Dunkin Donuts. Based on current income, the purchase price equated to a payoff ratio of 6.5% (capitalization rate).

Along with the immediate income, the three-acre property is also one of the few potential development waterfront sites in that area of Tampa Bay. “This is one of the last redevelopment sites on that stretch of Sand Key, possibly even from Indian Rocks Beach to Clearwater Beach,” says Steven Klein. “The property didn’t need much improvement; mainly some cosmetic paint and landscaping.” The purchase entity RNJ Sand Key LLC mortgaged the property to Wells Fargo Bank NA for $5.5 million.

PLANS, DESCRIPTION: Atlanta-based Oxford Properties and Tampa-based Bayfair Properties LLC purchased 21.47 acres near South Falkenburg Road and East Adamo Drive for $4.04 million. The price equated to $188,053 per acre. The joint-venture partners plan to develop a 13-building apartment community on a 19.5-acre portion of the site, called The Iris at Crosstown. Along with 342 residential units the property will include a clubhouse, separate leasing center, pool, detached garages and an exercise room. “That site is ideal for a multifamily development,” says Mike Morris, president of Bayfair Properties. “It’s not on a main road. It’s located adjacent to a new proposed retail community — the Estuary. It’s three quarters of a mile north of the Crosstown Expressway, so its access is excellent almost any time of day.” Morris hopes to be able to break ground on the $35 million development in October. The project will take seven to 18 months to complete. The purchase entity Iris Crosstown Apartments LLC mortgaged the property to Equity Realty Group LLC for two loans totaling $4.79 million.

Louisiana apartment investor Bayfair, Oxford properties purchase buys Crescent Lake Apartments land for apartment development BUYER: Crescent St. Pete LLC (principal: Richard BUYER: Iris Crosstown Apartments LLC (Iris

Crosstown Partners LLC), Atlanta SELLER: Equity Realty Group LLC PROPERTY: 10143 Palm River Road, Tampa PRICE: $4.04 million PREVIOUS PRICE: $3.5 million, December 2007

Paul Beaullieu), Tampa SELLER: Michael Novilla PROPERTY: 1525, 1527, 1601, 1725 and 1801 Fifth St. N., 459 15th Ave. N., 423, 427 and 439 18th Ave., St. Petersburg PRICE: $1.83 million

PREVIOUS PRICE: $265,000, April 2001 LAW FIRM ON DEED: Seminole Title Co.,

Seminole PLANS, DESCRIPTION: One of Tampa Bay’s most active apartment investors, Richard Beaullieu of Lafayette, La., purchased the 50-unit Crescent Lake Apartments for $1.83 million. The price equated to $36,500 per unit. Michael Donaldson of Marcus & Millichap’s Tampa office represented the property. “This offering was a collection of over 50 units in various older vintage buildings surrounding picturesque Crescent Lake Park, a prime location in St. Petersburg,” Donaldson says in a press release. “All of the interiors had been extensively renovated, with several units offering lake views, making these units highly desirable to tenants. Being able to achieve consistently high occupancy levels and continued rent growth in a strong location made this property truly appealing to the buyer.” Beaullieu has become well-known in the real estate community for investing heavily in local multifamily properties since the real estate crash. Last month, he acquired the 88-unit waterfront Dearborn Towers for $6.25 million. That followed Beaullieu’s purchase of the 184-unit Timberfalls Apartments in Tampa for $2.75 million. He owns eight other apartments and fractured condominium developments.

Etc.

• Nancy Surak of Eshenbaugh Land Co. in Tampa represented the seller, Eagle FL VI SPE LLC in a $1 million sale of 228 acres on County Road 491 (North Lecanto Highway), Lecanto in Citrus County.

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GULF COAST BUSINESS REVIEW AUGUST 3 – AUGUST 9, 2012

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