[Gainesville projects]

Clark Butler sold off Bulter Plaza and his other properties in Gainesville to Florida Southeast Development Corp. for $300 Million and they are planning $600 million worth of additional development.

Article published Feb 17, 2006

Buyers share Butler's vision for plaza

Plans for more than 130 acres of vacant land near Archer Road promise a mix of upscale condominiums, restaurants and retail under the glow of gas lamps around a park and amphitheater.

A string of big box superstores would be located nearby, filling out the back end of Butler Plaza and drawing customers to the shopping center from areas beyond the Alachua County lines.

It is, in many respects, Clark Butler's vision for the final stage of development of the plaza that bears his name. But it will be the Tampa-based Florida Southeast Development Corp. that carries the project to completion.

This week, Butler signed the papers that will turn some of his most recognizable properties over to Florida Southeast for about $300 million. The deal is for 250 acres, including Butler Plaza, the 235-unit Windmeadows Apartments behind the shopping center, the 12-story Lakeshore Towers on SW 13th Street and a swath of undeveloped land behind the plaza.

The company is not expected to close on the properties for up to three months, and the specific details of many of its plans are still on the drawing board, said Florida Southeast President Kenneth Mamula. But major developments, with a price tag of up to $600 million to build, are in store for a city Mamula said has been under-appreciated by developers for years.

In the immediate future, the company plans a full renovation designed to convert both Lakeshore and Windmeadows into condominiums, Mamula said.

In addition, engineers are working on a proposal to build a second 12-story tower and a three-story building next to Lakeshore that would also contain condos, he said.

Proposals for the renovation and expansion of Lakeshore could be filed by the end of the year, Mamula said.

But some of the largest-scale developments would be in the areas behind Butler Plaza, which had been the site of a mobile home park until 2002 when Butler closed it to make way for a new expansion to Butler Plaza.

Mamula's proposal is contingent on the expansion of SW 24th Avenue to four lanes. The county has rejected four-laning the road in the past. The proposal also includes several phases and styles of development.

A lifestyle center would place jewelry, boutique and other high-end shops and outdoor cafes around a park and man-made lake set to the north of Butler Plaza, Mamula said. The development would be designed with brick-paved sidewalks and other aesthetic amenities and would include condominiums designed to attract both professionals and University of Florida students, he said.

In addition, the company would build more traditional stores for big box retailers close to Butler Plaza and cap off the project with a renovation of the exterior of the shopping center.

While the plans call for a dramatic increase in the amount of retail in the area, Mamula said he's not looking to build just another strip mall.

"You can make these look like a beautiful center," Mamula said. "It doesn't have to be just a hodgepodge of stores."

Getting government approval and designing the project would take at least three years, Mamula said.

Enthusiasm abounds

Development and business professionals in Gainesville said the new projects could provide a welcome boost to the area and showed a growing respect for the city's market.

Gainesville Area Chamber of Commerce President Brent Christensen said Florida Southeast has a track record of strong developments in Tampa and throughout the state. The company's involvement in the further development of Butler Plaza could provide momentum for the project, he said.

"Hopefully, they'll have the patience and the resources to see that project through to its completion," Christensen said. "It's something we've been excited about for a number of years and hopefully this new developer will have the resources to make it happen."

Thomas McIntosh, owner/broker of ERA Trend Realty, said the company's interest in condo conversions followed a trend in the area and showed a maturing market.

"Gainesville's hitting the radar of a lot of the national investors and even the regional investors," McIntosh said. "We knew they were coming, this is just the first shot.

"Is this going to change the market? Sure it is," he said. "But it's going to be better for consumers because they'll have more choices."

Opportunity knocks

Mamula said though he has been bringing his family to Gainesville for 15 years to watch the Gators, he didn't really look at developing in the area until his daughter started school at UF. Shortly after she enrolled, Florida Southeast bought and converted The Greens from apartments into condos, which sold out in six months.

Looking for other opportunities in the area, Mamula said he approached Butler about buying Lakeshore Towers, with the intention of converting it into luxury condos. But during negotiations, which began about four months ago, Mamula said Butler began showing off his other properties, starting with Windmeadows and ending with Butler Plaza.

Butler said he spent several months making sure he was comfortable with Florida Southeast before choosing them. And Mamula said once Butler Plaza was on the table, it seemed to be a unique opportunity.

"I don't know where in the state of Florida you can match this opportunity," Mamula said. "One million square feet of retail with 130 acres behind it for a lifestyle center."

Butler said he chose to sell to Florida Southeast, after turning down more than a dozen other offers in recent years, because he believes the company will bring quality development to the properties and carry out the vision established by him and his daughter, Deborah.

"They're capable and financially able to it with the quality that Deborah and I would do it," he said.

Jeff Adelson can be reached at 352-374-5095 or [email protected]