Building Optimism

Building Optimism

DEVELOPMENT by Robin Roy | Contributing Writer

Last October, Bay Street Village broke ground on its 45-acre mixed-use development, promising to transform Osprey.

But nine months later, out of 550 planned condos, only 10 contracts have been signed.

Ray Rodriguez, the development's lead real estate broker, says contracts on 50% of the first construction phase, or 27 additional contracts, would have to be signed in the next three months to justify continuing with the residential portion of the project. He says he's confident that goal will be reached.

"I'm an optimist; I have faith," he says.

Rodriguez says buyers have put reservations on 10 additional condos, but contracts have not been signed.

After months of inactivity, work on the site has shifted into overdrive. Trees and brush have been stripped from the property and heavy equipment is beginning to put the infrastructure in place.

According to Rodriguez, all that activity has sparked interest among buyers and real estate agents.

"Before we were getting only two or three people a week (visiting the sales center). Now, we're getting 25 people a week," he says. "And Realtors are starting to come now."

Rodriguez doesn't want to speculate what would happen if the 50% goal is not reached.

"I just don't see it (happening)," he says.

The condo builder, Waterford Cos., did not return calls seeking comment.

A banner recently appeared on the fence surrounding Bay Street Village advertising condos for $143,900 - less than half of the minimum price quoted in October.

However, that price is for a newly-designed, 650-square-foot floor plan. The previous low price of $295,000 was for a 1,200-square-foot condo. The average cost for a Bay Street Village condo is between $300,000 and $400,000.

Estimates on when the development's residences will be sold out have been revised.

"It might not sell out in three years," Rodriguez says. "It might (take) seven to eight years."

The commercial side of Bay Street Village is another story.

An additional half-dozen businesses have signed on in the past two months, including: a Quiznos sandwich shop, a Colonial Bank branch, a high-end jewelry store (unidentified because of a confidentiality agreement), and a boutique salon, which does not yet have a name.

Rodriguez also revealed that a Bay Street Village is in initial conversations with an international boutique hotel operator to open a 26-room condo/hotel.

"It would be quaint and European-like," he says. "Room rates would be from $250 to $300."

He didn't want to reveal the name of the hotelier, but said an Osprey facility would be the first property it owned in the state of Florida.

Construction on the town center, which will contain the commercial and retail businesses, is expected to begin within the next two months.

Rodriguez says, if all goes well, a building shell will be complete in March 2008, and the shops will take another three months to open for business.

"We would not be moving so much dirt. We would not be putting in the infrastructure if we weren't prepared to complete the project," Rodriguez says. "It's just too expensive."

AT A GLANCE

BAY STREET VILLAGE

BUSINESSES

• Cafe Tosca, an Italian restaurant

• Decor De France, an importer of French decor, pottery and gifts

• The Ruby Slipper, a women's shoe store

• Starbucks

• Quiznos

• Osprey Dental Group

• Colonial Bank

• Unnamed jewelry store

• Unnamed salon

SCHEDULE

Before September - Towncenter construction begins

March 2008 - Towncenter construction ends

June 2008 - Towncenter businesses to open doors

October 2008 - Phase one condo construction ends

REVIEW SUMMARY

Project: Bay Street village, Osprey

Industry: Mixed use development

Key: Combining strong commercial sales with abundant optimism to push the project forward