$7.9 million invested in East Manatee's Concession development

cnudi@bradenton.comDecember 28, 2012 

EAST MANATEE -- With signs that the real estate market is starting to improve, a Sarasota company has invested $7.9 million in The Concession residential development.

John Peshkin, manager of Concessions 113, LLC, a Sarasota company formed for the transaction, says he has become confident in the reported growth in real estate again.

"I believe these are unique lots," Peshkin said Thursday, "and the project is in a good position to take advantage of the market."

The sales transaction, completed Dec. 13, is for the remaining 113 lots in Phase II of the residential development adjacent to The Concession Golf Club, a private Jack Nicklaus designed golf course south of State Road 70 and east of Lakewood Ranch.

"Also, the number of new homes being built in Manatee County is on the rise," said Peshkin, who also is managing partner in Vanguard Land, a Sarasota-based real estate investment company. "We've bought into nine different projects."

Sales of new homes rose 4.4 percent across the nation in November from October to a seasonally adjusted annual rate of 377,000 units, the Commerce Department said Thursday. That is the fastest pace since April 2010, when a federal tax credit boosted sales.

Peshkin and his partners purchased the lots from The Concession Land Development LLC, the original developer of the 1,200 acres.

Kevin Daves, president of Core Industries, the Wichita, Kan., company that owns The Concession Land Development, said the purchase agreement included terms where Daves' real estate company repurchases the lots at a predetermined price above the investment firm's purchase price of about $69,900 a lot.

The Concession Land Development is also a Sarasota-based company where Daves has his office.

Before the housing market crash in 2008, Daves' company had completed the golf course, club house, installation of the roads and utilities, and sold out the approximate 115 residential lots in Phase I of the project.

Wachovia, now Wells Fargo, held a $22 million mortgage on the Phase II property when it went into foreclosure after the recession began.

"We've been in negotiations with the bank," Daves said.

The bank worked with him until Peshkin's firm came up with their offer.

Six homes of up to 17,000 square feet were built in Phase II and were not part of the purchase.

The upswing in new home sales is not the only reason Daves says he is confident Phase II will sell out. He also sees a shortage of buildable lots in Manatee County, especially the 1/2- to 1-acre type in his development.

Inventory for the high-end existing homes is pretty much gone, he said, and a lot of people prefer to build on empty lots -- even with the wait to get permits, install roads and utilities, and more.

"With it taking up to seven years to develop lots, there will be a gap in available lots," Daves said.

Being adjacent to a world-class golf facility, in which Daves still has a financial stake, creates another plus in helping to ensure the investors get their money back and make a profit, Peshkin said.

"It's a positive attribute," he said.

"Residents are not required to be members, but I expect quite a few will take advantage of the opportunity."

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