Keeping Communities Vital

When the real-estate market tumbled from its boomtime peak, most developers were ill-prepared to respond. Construction in many new communities came to an abrupt halt. Residents, in turn, were dismayed to find themselves living in a surreal landscape of overgrown lots and unfinished amenities.

But not everyone in the development business buried their heads in the sand and waited for the crisis to pass. Some, like Newland Communities, adapted quickly to new realities, retooled and repositioned their projects and forged ahead.

Newland, in fact, may well have provided a case study on how to respond to a major downturn. Two of its communities, MiraBay and FishHawk Ranch, certainly took a hit. But the company’s ability to adjust its offerings while maintaining community value and integrity marked the difference between prospering and languishing.

Not all major national developers are so nimble – and Newland is as major as they come. The San Diego based company has completed more than 140 real estate developments, 20 million square feet of commercial and retail space and 175,000 residential units in 14 states.

Newland was recently tapped as Developer of the Year by Builder Developer Magazine, in part because of its success in the Tampa Bay area despite a historically weak market. “The strength of our Florida communities has been a tremendous asset to our national strategy,” says Bob McLeod, chairman and CEO.

So what happened at MiraBay and FishHawk Ranch to earn such kudos? Pam Parisi, director of marketing for both communities, says the company did many things, most importantly listened to home shoppers.

MiraBay, located in Hillsborough County’s Southshore area, debuted as an upscale boating community. “If you were a boater, that’s where you’d go,” says Parisi. “But there were many other compelling reasons to live there beyond water and boating.”

That nautical image, which appealed to a relatively narrow segment of buyers, combined with an unanticipated run-up in prices, caused in part by investor purchases, began posing a serious problem when the economy all but collapsed. So
Newland introduced smaller, more affordable homes designed specifically for MiraBay.

“We found that buyers were willing to go smaller, but they weren’t willing to sacrifice beautiful design and high-level finishes,” Parisi notes. “So the new products allowed us to broaden our market, but they didn’t in any way effect the overall quality of the development. When our existing residents saw the models, they realized we were keeping the integrity of the community intact.”

The new builders include Ashton Woods Homes, Cardel Homes, Homes by WestBay and K. Hovnanian. In the Bay Breeze section of MiraBay, Cardel and K. Hovnanian have introduced traditionally styled, low maintenance single-family homes featuring front porches and rear garages. The homes, which sit on 40-foot home sites, are priced starting in the $180’s.

“You can still purchase an estate home in MiraBay,” says Parisi, “but you can also now own a home for under $200,000.” She also noted that East Bay High School, for which the community is zoned, has improved its state grade from a D to an A, and that MiraBay Village, a retail center anchored by a Sweetbay, will be continuing to welcome new businesses.

MiraBay is approved for 1,700 homes on 750 acres. About 700 homes are built and occupied in the community, which offers a freshwater lagoon and saltwater canals leading to Tampa Bay. Amenities include The MiraBay Club with pools, fitness center, a spa and sports courts.

FishHawk Ranch, located in Lithia, was further along than MiraBay when the downturn hit, with some 3500 residences. The development was more established, investor activity had been less pronounced and sales had remained steady.

Still, Newland is offering six new product lines in FishHawk Ranch’s new Starling neighborhood, which will feature a mix of villas and single-family homes by David Weekley Homes, Ryland Homes, Beazer Homes, Homes by WestBay and Arthur Rutenberg.

Rutenberg, known for its big custom homes, is introducing a new line of smaller homes with upscale finishes. Prices in Starling will start in the $180’s for low maintenance villas and single family homes.

“Builders are willing to invest in ‘A’ communities,” Parisi says. “We had 15 new model homes open in 2010 between the two communities with five more slated to open in spring of 2011.Building a model home is a big investment for builders, affirming their commitment to our communities. In fact, our communities have 15% of all model homes in Hillsborough County.”

Parisi says keeping existing MiraBay and FishHawk Ranch residents in the loop about changes is crucial. After all, she notes, communities are about people as much as structures. Those who bought in prior to the economic turbulence need to be assured that the integrity and community vision are being protected and that any changes in the original concept will be positive ones. “I think we all learned a lot the last couple of years,” adds Parisi. “We’ve learned to really listen to our customers and adjust to meeting their needs.  I think ultimately we’ll all be better for it.”