Company takes a chance

It's a tough economy for sure, but a Sarasota developer thinks it's still a good time to move forward with development plans in South Shore.

Garrison Developer Group of Florida has started construction on The Preserve at Alafia, a 351-unit apartment complex in a gated community.

The apartments are part of a larger plan for Alafia Crossing, which calls for 100,000 square feet of commercial space and a Holiday Inn.

The 39.9-acre waterfront development is on Gibsonton Drive, east of Interstate 75.

"There is still a need for housing and luxury apartments," said Rey Ortega, president of the development company and a partner in the project. "That didn't change because of the economy."

The company started assembling land for the development in 2004, before the housing bust. In December, the company closed on its construction loan with Prudential Huntoon Paige, Ortega said.

"Others are canceling projects because they can't get funding, but we did," he said.

Larry Bauman, marketing director for the project, said he hopes the development will eventually become a "restaurant destination."

"There just aren't a lot of apartments in that area," he said.

Even so, it's a tough market for such a project, said Patrick Berman of Cushman & Wakefield, a commercial real estate firm.

"It seems to me that the last thing you would want to build right now is luxury apartments," Berman said.

According to Ortega, the rent for the units at The Preserve at Alafia will be between $1,000 and $1,200 per month. The apartment complex will also include a cyber cafe, river walk and a big-screen theater room.

If the apartment complex is successful, though, retail might do OK, Berman added.

"If the retail is built in a couple of years, there might be more demand by then," Berman said.

Bauman admitted that it's a difficult time to build such a development but thinks it will work in Riverview, partly because of the apartments. "There are no apartments in that area like these," he said. "It will truly be upscale."

The economy has altered the plans. Bauman said the original plan called for condominiums, and the development will be spread out more now.

The apartments are expected to be completed by the end of the year. The target date for completion of the entire Alafia Crossing project is summer 2011.

Commercial space will not be added until the apartments are built. Bauman said retailers are interested, including a major wine store and restaurants. Ortega said he spoke with two interested clients recently.

"From the retailers' perspective, they'll have a somewhat captive audience once the apartments are there," Bauman said.