The Elephant in the Room - Spring 2015

Although the most significant downtown sale of late occurred in the final quarter of last year, it remains important for its potential to impact Sarasota’s core going forward. The roughly 14-acre Sarasota Quay land was purchased for $27 million by Greenpointe Holdings, of Jacksonville, a steep discount to the estimated $110 million the former owner had borrowed before the property became lender controlled. While the development company has yet to unveil official plans, it has signaled that it intends to fulfill a site plan approved a decade ago entitling a mix of residences, retail, lodging and other uses to be constructed. The property possesses many positive attributes, including its water views; Downtown Bayfront Zoning that allows up to 50 units per acre in 18-story structures; proximity to the Ritz-Carlton Hotel and residences; and easy access to Fruitville Road and U.S. 41. But as former owner Irish-American Management Services Ltd. discovered last decade, the Quay also contains challenges that could stymie development, including a requirement that tens of millions of dollars of infrastructure be installed prior to vertical construction; views that would remain somewhat obstructed by the 988, 888 and Beau Ciel residences and the Hyatt Regency Sarasota hotel. Even so, the Quay land remains among the most attractive undeveloped tracts in all of Florida, and a site worth keeping an eye on.