LAKEWOOD RANCH - The ordinary turned extraordinary when a standard Schroeder-Manatee Ranch Inc. development procedure turned into the most expensive land transaction in Manatee County history.

The eye-popping dollar figure - $55.5 million - is fitting considering the ambitious development planned for the land that will be home to some of the priciest dwellings around - including those found along green fairways and white beaches.

Essentially, Schroeder-Manatee Ranch, or SMR, sold one of its subsidiaries about 1,260 acres for $55.5 million. The property is on the northeast corner of University Parkway and Lorraine Road and represents the exclusive Lake Club - the next major residential development in Lakewood Ranch. Officially, SMR sold the land to Lake Club Investors LLC.

At about $44,000 per acre, the sale assumes the top spot in a recent trend of high-priced agricultural land sales, including the March 31 Cone Ranch sale in Parrish that sent 1,100 acres to developer Reynold Glanz for $32.5 million.

"This is much larger on a per-acre basis than the one we talked about in the northern part of the county," said Dale Friedley of the county Property Appraiser's Office.

Tom Danahy, president of SMR subsidiary LWR Communities LLC, said the deal was simply a way of spreading around the financial burden of high-dollar development.

"It's just a method of financing and capitalization," he said. "We will develop it just the way we developed our other villages."

With lots ranging from one-third of an acre to just more than an acre, homes in Lake Club will start in the low end around $1 million, Danahy said.

Plans for the Lake Club call for a limited-access community that will require special clearance for non-residents. There will be no adjacent golf courses. Instead, the 1,700-acre development will be peppered with lakes, open space and ornamental bridges. Planned are 768 single-family lots and 322 upscale condominiums and coach-house units, Danahy said.

There are plans to expand the country club east of Lorraine Road and add 18 to 36 more holes of golf.

That, coupled with the ongoing development of high-end golf projects such as the Ritz-Carlton's Members Golf Club, The Concession and The Founders Club, the region of Manatee and Sarasota counties could eventually rival Naples' reputation for first-class residential and golf communities along Florida's west coast, developers say.

Area home price hikes lead U.S.

MELISSA FOLLOWELL

Herald Staff Writer
May 13, 2005

MANATEE - The rising cost of housing in Bradenton led the nation during the first quarter of 2005.

Neighboring Sarasota came in a distant second.

According to the National Association of Realtors, the median cost of existing homes in Bradenton reached $275,100 during the quarter, a 45.6 percent increase over the same quarter in 2004.

Sarasota saw median prices escalate to $326,300, a rise of 36 percent over 2004's first quarter.

State increases for the first quarter exceeded $200,000 for the first time, an increase of 27 percent over 2004, according to Florida Association of Realtor figures.

While the price hikes have left some aghast, many are willing to pay the high costs to live in the area.

While the quickly climbing prices excite those who can pay the price, some worry about those who may never be able to live the American dream of owning a home in the community where they work.

Restaurant owner Mike McGowan says the increases have positive and negative consequences.

McGowan is concerned that escalating costs will price workforce members out of the rental market as well as home-buying opportunities.

"At what point is it high enough?" McGowan asked of prices. "It's almost impossible to find anything on the market in the $160,000 to $200,000 range. That's a whole class of people that are priced out of the market."

Mike Koebel, Priority Bank's vice president and senior loan officer, said some buyers are taking a new approach.

"People are pooling their resources in order to afford a home in higher price brackets," Koebel said.

In many cases, single individuals are entering a contract with friends or others who are unrelated to them.

In addition, the mortgage industry is allowing higher debt-to-income ratios. Lower interest rates have made it slightly easier to qualify for a loan, Koebel said.

Local Realtors have said demand plays a major factor in the soaring prices, and renters hope to get in the action before prices go higher.

Sarasota and Manatee counties' supply is so limited and they know there is no point in renting because the prices are not going to go down.

Regardless of a low available property inventory, the Bradenton-Sarasota real estate market was one of the most active during the first quarter of 2005.

Our quiet little nugget on the west coast is not so quiet anymore.

The area ranked fifth in the number of existing home sales, according to the Florida Association of Realtors.

Homebuyers' sticker shock: Local prices top state and national numbers

Another record broken for median home prices in Bradenton and Sarasota: $316,600

MELISSA FOLLOWELL

Herald Staff Writer

MANATEE - Home prices rose as quickly as the temperature in Bradenton and Sarasota during May when both grew even hotter.

Median existing home prices in the Bradenton-Sarasota market soared to $316,600, almost $86,000 above the state's median prices.

Nationwide, the median cost was $207,000, up 12.5 percent from May 2004. It is only the second time median prices exceeded $200,000. April was the first, according to the National Association of Realtors.

Though local prices climbed, the number of sales was down 9 percent from the previous year, with local observers citing a shortage of inventory.

"More dollars are chasing fewer houses," said Patrick McGuire, sales manager of Buccaneer Realty in Bradenton.

He said he's seen eager buyers offer sellers more than the asking price to seal the deal. In many cases, those willing to go above the list price have lost out on two or three homes already and are not willing to risk it again, McGuire said.

"Our prices are going to continue to grow until our supply catches up with our demand," McGuire said.

Horizon Realty agent Cindy Morton lives and works in Lakewood Ranch and has seen how quickly property in the master-planned community disappear.

"Supply here has dwindled to nothing, and people still want to live here," Morton said.

The area's design is keeping demand high, and the high demand is garnering attention - in some cases even sparking further demand.

"It's kind of like going to a restaurant where there are always lines of people. Nothing draws a crowd like a crowd," McGuire said.

He said he anticipates two to three more decades of growth before supply and demand begin to even out.

As prices grow throughout the nation and make it more difficult for workers to own their own home, lenders are exploring ways to make ownership possible for those whose incomes aren't keeping up with the growing cost of real estate.

The Miami Herald reported this month that Fannie Mae will buy 40-year mortgages from lenders, something it didn't do previously.

Though interest rates on such loans are higher than the 30-year counterparts, the loans may attract buyers who are on the edge of qualifying, the article said.

Even that may be of little help to buyers priced out of the local market and employers may have to work harder to attract quality workers, McGuire said.

"Employers will have to pay more money to have people live and work here, similar to the job markets in San Francisco and L.A.," McGuire said.

Re/Max real estate agent Peggy Bunn experienced sticker shock when she visited her daughter in San Francisco. Now the 30-year Manatee County resident sees a picture not so different locally.

"I know how it was in California and I know that's where it's headed," Bunn said. "You pick up anything that lists the greatest places to live and Bradenton is on there."