PALMETTO -- A large parcel of grazing land that straddles Interstate 75 has sold to a St. Petersburg company after being lost in foreclosure during the Great Recession.
Two Smart Guys LLC, a company managed by Michael Galinski, purchased 295 acres in rural Palmetto for $2.65 million. The seller, IOTA North Manatee LLC, is a subsidiary of Sabal Financial Group in Newport Beach, Calif.
Located at 10615 Carter Road, the land is positioned between Buckeye Road and Moccasin Wallow Road. It is bisected by I-75 and features two large lakes, one on each half of the property.
Manatee County land records show the acreage was planned to be the site of Southbay Park, a residential community. Housing development planned along Moccasin Wallow Road is expected to bring 7,000 new homes to the market over the next few years.
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The sale is the second of significant acreage with a foreclosure history in the Moccasin Wallow area in the past few days. Tampa property investor Richard Trzcinski bought the 200-acre Woods at Moccasin Wallow last week from Wells Fargo Bank for $3.6 million.
Galinski's company bought the Carter Road property at a considerable discount compared with the last time it sold on the open market. In 2005, a subsidiary of a Chantilly, Va., holding company, North Manatee LLC, purchased the acreage for $6.57 million from R&J Acres LLC.
Galinski is Chief Executive Officer and founder of America II Electronics Inc., a St. Petersburg distributor of semiconductors. According to the company's website, America II is one of the largest semiconductor distributors. It operates in a number of coun
tries, including Japan and Mexico.
Galinski's Manatee County land was once part of a larger, 599-acre set of purchases financed with a $24 million mortgage issued by Ohio Savings Bank, according to county land records. The bank was later renamed AmTrust Bank.
In 2009, AmTrust foreclosed on the land at the same time it was going into receivership. Manatee County court records show the Federal Deposit Insurance Corp. was the receiver for the bank. A foreclosure judgment against North Manatee LLC and its partner, New Jersey-based K. Hovnanian Windward Homes, required the companies to pay the FDIC $13.6 million. Court documents show IOTA took possession of the property when it was foreclosed upon.
IOTA's parent, Sabal, was one of a number of financial institutions that bought loan portfolios from the FDIC that previously belonged to failed banks.
A spokeswoman for Sabal Financial Group said the company would not comment on the land sale. Galinski did not respond to a request to comment on the sale by press time.
Matt M. Johnson, Herald business reporter, can be reached at 941-745-7027, or on Twitter @MattAtBradenton.