Lutgert Cos. buys 11 acres for new Mercato residences

BUYER: Mercato Residences LLC (principal: Howard Gutman), Naples
SELLER: The Residences at Mercato Inc.
PROPERTY: 9255 Mercato Way, Naples
PRICE: $13.5 million
LAW FIRM ON DEED: Coleman Yovanovich & Koester PA, Naples

PLANS, DESCRIPTION:
The Lutgert Cos. purchased 11.25 acres of vacant residential land in North Naples for $13.5 million.

The price equated to $1.2 million per acre.

The residential tract is north of the existing Mercato retail, office and residential development between U.S. 41 and the future extension of Mercato Way adjacent to the Pelican Marsh community.

The property is entitled for up to 83 residential units. Howard Gutman, president of The Lutgert Cos., says the firm is still evaluating concepts for the site, but that its plans would likely create fewer units than the maximum allowed. Lutgert is considering both single-family homes and attached villas for the property.

The purchase marks a return for Lutgert to the property, which it previously owned in a joint venture with its current seller, the Barron Collier Cos. Lutgert also previously developed the 92-unit The Strada at Mercato project.

David Stevens of Investment Properties Corp. represented the seller.

“This really shows the strength of the market,” Stevens says. “The purchase really made the most sense for [The Lutgert Cos.] They had the infrastructure in place. They have a marketing team already at the Mercato, and they already have the product out there.”

The purchase entity, Mercato Residences LLC, mortgaged the property to The Northern Trust Co. for $8.78 million.

This article has been updated to correct that Lutgert Cos. does not plan on partnering to develop the property.