Reese Stigliano, Senior Vice President of Brenner Real Estate represented the buyer in the sale of 34 single family lots in the 20-acre residential subdivision called Park Lane Estates located in Vero Beach.
The buyer was HM Park Lane Estates, LLC a Miami-based company. The Seller, Joyal Enterprises, is a family-owned company located in Melbourne.
The $516,000 sale closed April 28th.
Park Lane Estates is a private, gated community originally developed by Joyal Homes. The development is located on the mainland side of Vero Beach, east of I-95 a few miles from the Vero Beach Outlet Mall. Several homes were built and sold in the development prior to the collapse of the housing market in 2006. Based on the latest sale price, the average price for the lots was $15,000 per lot. Each lot is approximately 97′ x 122′.
This is Stigliano’s third transaction with Stefan Hoyer, managing member of the buying entity. Hoyer’s company is an investor in residential land and single family home lots. The company’s business model is to buy single family lots and land bank them for the publicly-traded home builder like D.R. Horton, one of Hoyer’s main clients.
“In my mind, when I purchase finished single family lots, my land basis is zero. What I’m buying is the entitlements, the governmental approvals, the infrastructure of the development, the streets, sidewalks, the water and sewer lines. Which, if built today, is more than my purchase price,” said Hoyer.
Another reason Hoyer is focused on single family lots is the exit strategy. “As opposed to a typical commercial real estate property like an apartment building or a shopping center, if I’m force to sell, I don’t have to sell the entire property, I can sell one lot at a time. I like that flexibility.”
Reese commented, “I enjoy working with Stefan. He is bright, energetic and has identified a unique opportunity that he is capitalizing on.”
According to Hoyer, Reese’s background and 25 years experience in commercial real estate is invaluable. “I rely on his judgment and I know he’s got my back from the beginning of a transaction right up through the closing.”