Finalist: Mike Miller

Finalist: Mike Miller

President and CEO of Waterford Cos.

About five to six years ago, Venice developer Mike Miller made a strategic decision. His Waterford Cos. for years had focused on commercial development opportunities with a secondary focus on single-family homes. But it was clear to Miller there was a dwindling supply of developable land.

Rather than view this trend as a problem, Miller saw opportunity. A dwindling supply of land, coupled with a massive residential building boom in Florida, meant one thing to him: high density condo development on infill sites. So he decided to tweak the company's business plan and refocus resources on this sector of the emerging residential market.

Just a few weeks ago, the Waterford Cos. closed on the $15 million acquisition of a 28-acre tract, with entitlements for about 500 residential units, at Bay Street Village in Osprey. The deal is the latest indicator Miller made a good choice those years ago.

If his forecast holds true, the company's founding president and chief executive officer projects a 47% increase this year in total revenue to about $125 million.

"This year we will have entered into sales contracts valued at more than $200 million," he says. "Last year, we finished at $85 million, but entered into about $125 million sales contracts. The trend is we're entering into contracts to sell more than we can deliver. So each year we're growing and catching up to sales."

Since the 1986 formation of the Waterford Cos., it has built about 1,000 homes primarily within a 10- to 20-mile radius of downtown Venice. It also owns and manages 300,000 square feet office, office-warehouse and retail space. So far this year, the company's 115-employee work force is focused on no less than nine active development projects.

Amid this growth, the company has capitalized on another strategic component of its business plan. The company maintains a tight control on all phases of operations through several subsidiary companies.

Early on, the firm formed Waterford Realty of Venice Inc. for new home sales. Waterford Construction Inc. is the company's general contracting unit.

About three years ago, Miller formed Waterford Real Estate Services Inc. as a resale brokerage. This subsidiary has capitalized on the increasing number of existing homebuyers who profited from rising property values as low mortgage interest rates and continued residential buyer demand fuels the market.

About two years ago, Miller ventured into the financial markets. He formed Waterford American Mortgage Ltd. as a licensed correspondent lender. It works with Bank of America, SunTrust and other lenders as an added amenity for prospective buyers.

"It's a one-stop shop," Miller says. "That's what we're trying to do. About a year ago, we started our own architectural firm to work with the multiple projects we have going on."

This year Miller expects to sell about 500 residential units. About 80% of those are condos. Single-family units account for about 20% of this year's projected sales.

Sales should continue at an even faster pace than the past few years, Miller says. He attributes that optimism to a relatively recent trend.

"Historically, at least 80% to 90% of buyers are (owner-occupied) homeowners," he says. "Over the past year, that's gone down to 70/30. Investors are entering the market. Future retirees are purchasing now, even if they're not moving down so they can buy at today's prices. They're afraid the demand will reduce supply."

"Of course, the reason I see that occurring is due to price increases," he adds. "So our absorption is so much higher."

There are a couple of good examples of how Miller has timed existing market conditions. One is the Waterford on Venice Island, a 96-unit condominium project on Venice Island. Another is a proposed 73-acre multifamily project at Laurel Road and Knights Trail near Interstate 75.

Waterford on Venice Island is a densely design, mixed-use condo-retail project that ultimately will consist of three, 85-foot-tall towers adjacent to the Intracoastal Waterway on Tampa Avenue.

The project required the assemblage of several undervalued infill properties, including two cement plants, the old Moose Lodge and the Oyster Cracker. The assemblage required some creative deal making.

The company agreed to build a new home for the Moose Lodge. Then it bought industrial land near I-75 and transferred the deeds to cement plants' owners, RMC and Singletary.

The Laurel Road project proposes from 600 to 900 units of rental apartments, town homes and multiplex condos. This project targets the pre-retirement market, with each town home selling for less than $200,000 and each condo ranging from $200,000 to $300,000.

Miller purchased the land with the idea that labor at two nearby business centers could fuel quick demand for apartments, town homes and condos. One of those business centers, Laurel International Business Center, is a Waterford Cos. commercial property.

"We're submitting the concept plans to the city on May 23," Miller says. "It's currently zoned industrial. We expect approvals by October and should commence construction by January."

Meanwhile, Miller says he timed the market right with the acquisition of the Bay Street Village property in Osprey. He purchased it from Venice developer Henry Rodriguez, who recently received city approval to erect 66,0000 square feet of retail and office space on an adjoining 31 acres.

COMPANY STATS

Employees: 2003: 88; 2004: 107 2005: 115.

Revenue: 2002: $39.6 million; 2003:

$37.9 million; 2004: $85 million.

Average annual

growth: 60%