The Hard Part

COVER UPDATE

The Hard Part

Mark Pierce says he's been told many times over the past year that the mixed-use condo project he's developing in downtown Sarasota is the best project around.

But Pierce knows he can't let the praise get to his head. For starters, the project, Citrus Square, is virtually the only project around, as the construction market in downtown Sarasota has all but dried up.

Pierce, however, has carried on well. The project, less than a half-mile north of Main Street on Orange Avenue, is a mix of 11,500 square feet of retail space and 37 condos, ranging from 500 square feet at the low end to about 1,300 square feet at the high end. It mirrors a European-style mixed-use project, with tree-lined streets and antique-looking lampposts flanking a complex designed to look like six buildings built side-by-side over years, as opposed to one monolithic structure.

The project is going up in two phases, says Pierce, with the first stage scheduled to be completed by early this year. The project is on time and at budget, an accomplishment Pierce was able to reach mostly due to the large pool of contractors seeking work.

Now comes the hard part: Sales. In early February, Pierce said he had reached 14 pre-sale agreements for condos, on prices ranging from the mid-$200,000s to about $550,000. But as he entered 2009, none of those agreements had turned into sales.

He's hopeful that the finished product will lead the transition from interest to actual dollars. "It's not as easy as it once was to convince people to buy products from plans," says Pierce, a Sarasota-area contractor who is partnering with George Birkhold, a local accountant, on the project. "Nowadays they want to see the product built."

The other aspect of the project that Pierce gets complemented on is the ground floor retail component, which includes space for up to 10 tenants. Pierce is currently in the negotiation stages with several possible tenants, including an Italian restaurant, a breakfast/coffeehouse and dry cleaners.

Pierce says predicting how sales will go in 2009, once the condo models are open, is still a tough call. He's found hope in seeing repeat faces at open houses and showings. But he knows getting people to part with money, especially on such a big purchase in such a down economy, will be a tough call.

"Although it's more difficult than it used to be, there are still customers out there," says Pierce. "We just have to work a lot harder."

- Mark Gordon