Mixed-Use Real Estate Explained

SOUTHWEST FLORIDA IS ENTERING A LUXURY LIVING BOOM WITH MULTIPLE DEVELOPMENTS POPPING UP THROUGHOUT THE AREA. THESE MULTIMILLION DOLLAR PROJECTS COMBINED RESIDENCES, RETAIL AND RESTAURANTS. THAT INCLUDES DOWNTOWN NAPLES, WHERE SEVERAL LUXURY CONDOMINIUMS ALL WITHIN A MILE RADIUS ARE TRANSFORMING THE 5TH AVENUE NEIGHBORHOODS. ONE UPCOMING COMPLEX. IT IS AT METROPOLITAN NAPLES, A LUXURY 15 STORY HIGH-RISE REPORTEDLY ALMOST HALF OF THE 56 RESIDENCES ARE SOLD. THEY ARE PRICED BETWEEN 2 7 MILLION DOLLARS. IT IS PART OF A WALKABLE COMMUNITY THAT INCLUDES RESTAURANTS AND RETAILERS AND IT'S AN EXAMPLE OF THE MIXED USE ON TREND IN SOUTHWEST FLORIDA. FOR MORE ON A SNAPSHOT OF THE COMMERCIAL BOOM THAT IS UNDERWAY IN SOUTHWEST FLORIDA. I'M JOINED BY MATT SIMMONS, COMMERCIAL REAL ESTATE EXPERT. THANK YOU FOR JOINING US TODAY. THANK YOU FOR HAVING ME. AND THAT WE HAVE BEEN SEEING SO MUCH IN THE NEWS ABOUT MIXED RETAIL DEVELOPMENT PROJECTS THAT ARE IN THE WORKS. WHY IS THIS A TREND IN OUR AREA? >> WELL, WHY IT'S A TREND FOR FOR ONE. LET'S MAKE SURE WE'RE DEFINING IT. AND SO WHEN WE TALK ABOUT MIXED USE DEVELOPMENT, IT'S WHERE THERE'S 2 OR MORE USES THAT ARE PART OF THE SAME PROJECT. SO IT OFTEN LOOKS LIKE RETAILER OFFICE SAY ON THE FIRST AND SECOND FLOOR AND RESIDENTIAL UP ABOVE IT. BUT THE REASON WHY WE'RE SEEING MORE OF IT, IT'S TWOFOLD. FOR ONE, IT'S IN DEMAND. PEOPLE WANT A AREA TO LIVE IT WHERE THEY CAN KIND OF LIVE WORK AND PLAY ON THE SAME LOCATION. AND THE OTHER REASON THAT WE'RE SEEING A LOT MORE, A LOT MORE MIXED USE DEVELOPMENT IS OUT OF NECESSITY AS WE'VE GROWN AS A COMMUNITY. THE EASILY DEVELOPABLE SITES SAY THAT ARE WEST OF I-75. WE'RE RUNNING OUT OF THOSE. AND SO WHAT WE'RE SEEING IS MORE AND MORE DEVELOPMENT THAT'S GOING VERTICAL REDEVELOPMENT OF INFILL PROPERTIES. THAT'S A WERE DEVELOPED 50 60 YEARS AGO AND ARE NOW READY FOR A REFRESH. THAT'S WHERE WE'RE SEEING MIXED USE DEVELOPMENT. >> AND CAPE CORAL HAS A HALF BILLION DOLLAR PROJECT THAT IS IN THE WORKS. THAT IS MIXED USE AS YOU'RE DESCRIBING >> TELL US MORE ABOUT THIS. YEAH. SO IT'S THE BIMINI EAST PROJECT. IT WAS RECENTLY IN THE NEWS ROUGHLY A HALF BILLION DOLLARS OF CROWN DEVELOPMENT IS NEGOTIATING WITH CITY OF CAPE CORAL. THEY'RE WORKING ON A DEVELOPMENT AGREEMENT TO DEVELOP THE BIMINI EAST PROPERTY, WHICH WILL ULTIMATELY BE AROUND. 33 34 ACRES NOW CROWN DEVELOPMENT. IF THAT SOUNDS FAMILIAR, IT WAS BECAUSE THEY WERE THE DEVELOPER OF BIMINI SQUARE ON THE WEST SIDE OF THE BIMINI BASIN. BUT THE BIG MONEY EAST PROJECT THAT'S BEEN PUT FORWARD IS A ROBUST DEVELOPMENT ROUND 80900 RESIDENTIAL UNITS, 250 HOTEL ROOMS, A COUPLE 100,000 SQUARE FEET OF COMMERCIAL SPACE ARENA. YOU KNOW, 4, 5, PARKING GARAGES THAT ARE BUILT AND IT'S A BIG, ROBUST PROJECT. >> AND IN NAPLES, WE HAVE RECENTLY HEARD A LOT ABOUT THE AVENUE. WHY IS THIS CAPTURING SO MUCH ATTENTION? WHAT MAKES IT UNIQUE? >> WITH AVENUE RECENTLY STICKER, THEIR CONSTRUCTION FINANCING. A LITTLE OVER 200 MILLION DOLLARS. THE REASON I THINK WE'RE HEARING SO MUCH ABOUT IT IS BECAUSE OF ITS LOCATION, THE AVENUE IS RIGHT AT 9TH STREET AND 5TH AVENUE SOUTH. WE HAVEN'T HAD A KIND OF A SITE LIKE THIS THAT IS A LONG THE 5TH AVENUE CORRIDOR THAT'S AVAILABLE FOR LARGE-SCALE DEVELOPMENT IN A LONG TIME IN THIS PROJECT IS A LONG TIME IN THE MAKING. AND SO IT'S ANOTHER MIXED USE PROJECT OF RESIDENTIAL ON THE SECOND FLOOR. IN THIS CASE, 50 LUXURY CONDOMINIUM UNITS ALONG WITH OFFICE IN RETAIL ON THE GROUND LEVEL. >> AND YOU AND I HAD BEEN SPEAKING EARLIER ABOUT MORE UPSCALE FURNITURE STORES AND RETAIL OUTLETS IN THAT AREA. AND THOSE ARE NEEDED BECAUSE THERE ARE SO MANY UPSCALE CONDOS, RIGHT? I NEED TO BE FURNISHED. THAT'S RIGHT. THE COMMERCIAL USES ALWAYS FOLLOW RESIDENTIAL. >> SO WE'VE SEEN OVER THE PAST FEW YEARS, A LEVELING UP IN THE RESIDENTIAL MARKET. IN SOME WAYS. HURRICANE IAN USHER IN THE NEXT EVOLUTION OF OUR MARKET. AND ITS LARGER HIGHER IN UNITS. AND SO AS THOSE ARE DEVELOPING, WE NEED THE COMMERCIALS TO SUPPORT SERVICES BEHIND THEM. AND SO NOW WE'RE STARTING TO SEE THOSE USES COME INTO OUR MARKET, WHETHER IT'S HIGH-END AUTO DEALERSHIPS, HIGH-END RETAILERS, LIKE THE RESTORATION HARDWARE THAT'S UNDER CONSTRUCTION AT WATERSIDE SHOPS. THOSE USES ARE TRYING TO GET PROXIMATE TO THE HIGH-END RESIDENTIAL CONDOS THAT ARE IN OUR MARKET. >> ARE YOU SURPRISED AT THIS BUSINESS BOOM IN OUR AREA? YOU'VE BEEN AROUND A LONG TIME IN THE SOUTHWEST FLORIDA MARKET RIGHT? >> NOT SURPRISED AT ALL. AND ULTIMATELY IT'S A FUNCTION OF OUR POPULATION GROWTH. LEE COUNTY IN PARTICULAR IS CREEPING CLOSER AND CLOSER TO THE 1 MILLION RESIDENT MARK. I BELIEVE THE ESTIMATES ARE AROUND 2045 0ST TO HIT THAT MARK, I THINK WE'LL GET THERE FASTER. BUT OUR REGION IN PARTICULAR, EACH TIME WE HIT A NEW POPULATION THRESHOLD, WE SEE NEW RETAILERS JUMP INTO OUR MARKET. SO IT SIMPLY A FUNCTION OF THE ACCELERATED GROWTH. WE'VE SEEN. >> MATT SIMMONS, THANK YOU SO MUCH FOR JOINING US TODAY.