$19.9M Fort Myers property hailed as 'Mona Lisa'
Got $19.9 million?
A huge piece of prime property in downtown Fort Myers carries that price tag, with a buyer paying for the chance to have a lasting impact in the liveliest part of the city, much of it near the river.
The property includes the historic Bradford building and a vacant site between it and the Caloosahatchee River. The site’s development potential is likely the biggest lure.
The property, in a sense, is two properties in one. The 103,000-square-foot Bradford building takes up a full city block on First Street, between Hendry and Jackson streets. That includes commercial space on the ground floor, as well as 41 apartments on the second and third floors. The property includes an additional development site of 18,000 square feet at Hendry and Bay streets, where a non-historic building and parking lot exist.
The vacant 2.37-acre development site bounded by Hendry, Bay, Jackson and Edwards streets is the “largest vacant development site within the River District,” according to the listing. It now has 170 parking spaces.
The vacant site includes the two parcels that are separated by the city-owned Hall of 50 States, a circa-1927 building that once hosted balls and jazz concerts. Real estate experts say a buyer will want to gain control of that city-owned parcel.
“This property is a trophy showcase property for the downtown River District,” said Stephen Cunningham of SVN Florida Commercial Real Estate Advisors, who has the listing. “With the hotel coming into play and the other dynamics of downtown Fort Myers, this is the epicenter of development.”
A new hotel expected to open in late 2018 will soon be constructed and connected to Harborside Event Center, in the footprint of the center’s parking lot which is next to the vacant site.
Still, Cunningham acknowledged the challenge of selling a property that combines an existing mixed-use building with vacant land.
“A pure developer doesn’t really care about the Bradford building,” he said. “They want to put land under contract, get the approvals they need and hopefully build a development that is profitable. I don’t think it’s going to be an easy sell, but it’s kind of like comparing it to the Mona Lisa.”
On the up side, Cunningham said, “it is attractive to some entities because the process to get entitlements is cumbersome. The holding cost, the net income of the existing structure is a positive factor.”
What’s the likeliest use for that land?
“Most people consider that a residential development site with views over the Caloosahatchee River,” he said. “There might be a mixed-use component to that.”
The property is owned by Bill Smith Inc., which is controlled by the Smith family, notably Earl and Wilbur Smith.
Earl Smith said selling the property will allow the family to focus on its bustling Bill Smith Electronics and Appliances, the business started by their father in 1954. Plans call for adding one or two locations — ideally one in Lee and one in Collier — that are close to the interstate.
Bill Smith bought the Bradford property and the parcel directly across Bay Street in 1979, but the parcels on either side of the Hall of 50 States site were purchased in 2005, property records show.
“The undeveloped lot was purchased with the intent of developing it, to partner with a developer,” Earl Smith said. “We need to keep our focus on the electronics and appliance business and that did not fit in with the portfolio. We did not want to venture into an agreement with another entity, so we decided to put it on the market. We’re focusing on what we’re really good at.”
The strengthening market and the pace of change downtown, as well as talk of raising density levels, also played a role in listing it.
“If we could simply have sold that vacant lot to a developer, that’s what we would have preferred doing, but because it’s a parking lot and the parking is tied to the Bradford block, the restaurant and commercial tenants, the two are melded together,” Earl Smith said. “It makes it a little sentimental of losing that, but nonetheless the two had to go together.”
The timing comes as downtown Fort Myers and the surrounding area appear to be on the forefront of unprecedented change.
“We recognized the time is now to develop the property and we want someone to develop it as an iconic landmark,” Wilbur Smith said. “Everybody has told us it is the key piece of property downtown. Now is the time we can attract the most interest.”
Fort Myers Mayor Randy Henderson expects the city to work with whomever purchases the property.
“I think it’s fair to say the council would welcome any opportunity to work with a future developer to see what could be done there,” he said, referring to the vacant site.
That conversation would include whether the Hall of 50 States could be useful to the developer, Henderson said, and if so, in what way: “I think the council would entertain that and encourage that.”
Randy Thibaut, a real estate expert who is the owner and founder of Land Solutions Inc., said it’s important to look at the property in the context of what’s going on in and around downtown.
“We’re right on the cusp of the next leap in Fort Myers,” he said. “We’ve got enthusiasm of the high-rises, we’ve got enthusiasm with the hotel … does this Midtown deal get approved? If it does, then you’re going to see a resurgence of people who are going to look at downtown Fort Myers as an opportunity. If it doesn’t, that puts further delay from the investor market.”
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While the property may simply be seen as a moneymaker to a developer, it will always be special to the Smiths: “It’s a source of pride to all of our family,” Wilbur Smith said. “We’ll feel significant loss when it is sold.”
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