Homebuilder seeks land, in a big way

Here's a near-golden sign the recession, at least the one in homebuilding, has begun to evaporate: Homebuilder Pat Neal, one of the most prolific developers on the Gulf Coast, is buying land. A lot of land.

“I think it's clear the real estate market is turning,” says Neal, president of Lakewood Ranch-based Neal Communities, which had $126.32 million in 2011 sales. “There will definitely be a boomlet in housing, but at much lower prices.”

Adds Neal: “I'm anxious to buy more land. I'm looking hard.”

Neal, who says he's seen the recession movie five times, going back to the early 1970s, isn't shy about his current land acquisition plans. His target area is broad, spreading from south Sarasota County to certain areas of Lee and Collier counties. Neal Communities has been a new-homes leader in Manatee County for decades.

The land acquisition strategy, moreover, comes with a heightened sense of urgency. Neal recently sent an email to dozens of local Realtors and agents that closed with his cell phone number, and he's personally spread the word among area land brokers and bankers. Neal says he had four separate site appointments Nov. 16 for possible deals.

“We continue to pursue opportunities to buy land in Sarasota County,” Neal wrote in the Nov. 13 note. “Our firm closed title on four land parcels in 2012, has two additional parcels under contract and is looking for more land to purchase.”

The note adds details on what Neal seeks in a deal. The list includes vacant land in subdivision sites, where homes can be built in the $130,000 to $600,000 price range. Those sites, Neal writes, can be on entitled or un-entitled land, but should be at least 40 acres and have water and sewer nearby. Neal adds that the firm will also buy residential sites next to golf courses or in river areas.

“I'm making a pretty significant bet,” says Neal, “that this is the time to buy.”