$22 MIL Real Estate Deal Good for Polk County, Florida Economy

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Richard Dempsey, Realtor® and Sales Associate with Coldwell Banker Commercial Saunders Real Estate (CBCSRE), recently closed a transaction involving 1,042 acres of citrus grove land in Polk County for over $22.3 MIL. Sold by Highland Cassidy to an LLC registered in Delaware, the land consists of 30 tracts of working groves that are scattered logistically between Davenport and Lake Wales in eastern Polk County, FL.

“This is great news for the Polk County economy. We are seeing increased activity in land interest,” states Dempsey. “Serious buyers and investors are starting to be enthusiastic in this buyer’s market.”

In addition to Dempsey’s view on the Polk County real estate market, he offers that the land market is unquestionably active but that the buyers’ objectives have changed. Two years ago we found that short-term speculators were among the most active buyers. Today, buyers are more carefully taking the long-term view, recognizing that growth pressure from Tampa and Orlando will continue to deplete the inventory of land available for development. Investors that are working their plan for the long-term are the ones that can benefit from what is happening right now. Coldwell Banker Commercial Saunders Real Estate (CBCSRE) agents are seeing increasing activity in large land tracts. For 2008 in August, closings amount to just over $61 MIL.

Since joining Saunders Real Estate in January 2000, Dempsey has sold over $120 million in properties, specializing in large acreage tracts, citrus groves, and development properties. Dempsey currently serves as a board member, Treasurer, and CID (Commercial Industrial Division) committee member for the Lakeland Association of Realtors®.

Florida Conservation Easements: the Essence of Landowner’s Property Rights

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LandThink.com
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The pathway to conservation easements
is not always a straight line
but, more often than not,
is worth the trip.
[Dean Saunders, ALC]

Conservation easements are powerful, effective tools available to landowners for the permanent conservation of private lands in the United States. The use of conservation easement options has successfully protected millions of acres of wildlife habitat and open space, keeping land in private hands and generating significant public benefits.

The primary purpose of a conservation easement is to give a landowner the right to protect his land from certain types of development or land use.

This opportunity appeals to property owners who hold undeveloped land that is agricultural and/or has timberland, wildlife habitats, natural open space, and those with natural resources. Simply, a conservation easement is a restriction on the use of property similar to a deed restriction. It is recorded in public records and generally is in perpetuity. The government receives assurance that this valuable land will be protected from future development.

When you purchase land, you also purchase a bundle of rights. These rights include, among others, the right to develop, and the right to minerals and water. Collectively this bundle of rights is called “fee title.”

As a landowner, you also have the ability to sell some of these rights while maintaining ownership to the land. This is generally known as selling a “less-than-fee” interest. A conservation easement is a form of “less-than fee” interest and is a voluntary agreement that allows a landowner to limit the type or amount of development on their property while retaining private ownership of the land.

When you choose to give up some of these rights, by either donation or sale, you are compensated. The more rights you relinquish to the recipient, the more compensation you’ll receive, by either tax benefits or direct dollars, or both.

As a Florida native, born and raised in Central Florida, I have a strong heritage that appreciates the “old Florida” lands with their natural beauty and habitats. With progress and development of the past years comes the destruction of these lands in favor of buildings, roads, homes, and communities. Progress is needed to support our communities; however, today we find too few acres of “old Florida” and too few habitats for Florida’s unique wildlife.

My life’s work, first in the Florida legislature and now in real estate, has been closely tied to conserving Florida’s landscape through work in the legislative process and guidance to landowners for conserving their land. One opportunity we consider is a conservation easement. A conservation easement is recommended to my real estate clients when the property is right, meets qualifications, and the landowner desires a way to keep the property from major development.

As a member of the Florida Legislature from 1992 to 1996, I led the establishment of the Green Swamp Land Authority that resulted in the first Florida state agency ever created to purchase development rights from landowners. This work was instrumental in the passing of the law requiring Florida state agencies to purchase a specific number of conservation easements each year. Today, not only is the number of conservation easements being bought by the federal, state, and local governments growing, but also we see a demand from private conservation organizations.

Florida tourism and population boom have made land more valuable than ever. Some landowners would like to profit from the increased value, as well as preserve the beauty and function of their land. Others want their land to stay in the family, but worry that estate taxes will force their heirs to sell.

While many conservation easements are donated, others are also sold. If your land qualifies as a conservation easement, it is worth your time to research how this can benefit you and your family for generations to come.

For more information on conservation easements; land, commercial, and industrial properties; and land and resource management, please visit http://www.saundersrealestate.com/ or call Dean Saunders at 1-877-518-LAND.

~Dean Saunders, ALC (Accredited Land Consultant), is a leader in conservation who understands the needs and processes of government agencies and private conservation organizations. The company, Coldwell Banker Commercial Saunders Real Estate, is located in Lakeland, FL and offers real estate services for land, commercial, industrial and conservation properties, as well as land and resource management.

All You Need to Know About Florida Conservation Easements

And Then Some.............

Welcome the second publishing of the award-winning booklet, We Create Solutions for Landowners: A Primer on Conservation Easements!

The update and additional information on conservation easements is now available to you to guide you when considering the selling of your land. It is a “must read” for anyone who would consider a conservation easement as an option.

Originally published in 2002, the booklet offers a wealth of information and advice on one of real estate’s most specialty options – the conservation easement. It was created to provide insight and answers to questions about conservation easements, property rights, and landowner rights - simply stated and easy to understand.

As a former Florida legislator who assisted in creating and passing important conservation legislation, I worked to further property rights of landowners, and served with Florida US Senator, then Florida Governor, Lawton Chiles. You may download your complementary copy of this booklet here.

~Dean

Central Florida Economy Growing

The 4th Annual Florida Real Estate Land Conference
Economists Agree: Cautions Short-term Outlook; Positive Long-term Outlook

The convening of the 4th Annual Florida Real Estate Land Conference hosted exclusively by Dean Saunders, Coldwell Banker Commercial Saunders Real Estate (CBCSRE) in Lakeland, FL, was an exercise in poking through and around the perceived woes and economics of real estate, both in the nation and in Florida today.

This year’s presentation proved to be a judicious and hopeful glimpse into the economy that fuels real estate decisions for Florida and for Polk County.

Economic forecasts were presented by influential economists and a legislative lobbyist. This year’s conference included respected authorities Dr. Sam Chandan, Chief Economist and Senior Vice President, REIS, New York, NY; Dr. Sean Snaith, Director of the Institute for Economic Competitiveness/University of Central Florida, Orlando, FL; and Wade Hopping, Former Florida Justice Supreme Court, Attorney, Land Use and Environmental Law, Hopping Green & Sams, Tallahassee, FL.

Priming the audience for the well-anticipated economic news was Dean Saunders, ALC, owner of Coldwell Banker Commercial Saunders Real Estate, and host/sponsor of the annual event.

Opening remarks by Saunders observes, “We see less real estate activity due to the lack of consumer confidence but it is different from other recessions. There is money to be invested, however, buyers are not sure where the bottom is and are cautious. We’ve also lost the activity of two major markets: large tract development and the investor/speculator, which brings to us a soft market.”

Wade Hopping, former Justice Florida Supreme Court, is a legislative attorney working in the Tallahassee legislative process since 1958 and who focuses on land use and environmental law. Hopping’s overview of the legislative year included the sub-prime debacle, “irrational exuberance” in the real estate markets, insurance availability and rate problems run up in Ad Valorem taxes, foreclosures by the hundreds, gasoline price increases, and national economic woes all conspired to reduce Florida’s 2008-2009 budget by $6 billion compared to the state’s $72 billion budget two years ago. The state budget reductions have impacted all state activities including schools, State employees, healthcare recipients, everglades restoration, university funding, and community college funding.

Hopping’s advice for property owners: “With the housing and real property markets suffering economic woe, it is important that those who own property become active in Florida's legislative process. Bad market conditions are good times for local government officials, legislators, and regulators to examine the project review process and eliminate unnecessary bureaucracy."

Dr. Sean Snaith, Director of the Institute for Economic Competitiveness at the University of Central Florida states that, “The short term malaise in real estate and the credit industry is a bump on road compared to the longer trends for demographics and economics that shine a favorable light on Central Florida. Lakeland is in a good position, given the central metro area and the rise in prices in coastal areas that align Polk County for growth.”

Snaith suggests strong trends showing demographic migration from the once popular coastal regions to the interior of the state. Due to the rising costs of real estate, property insurance, and basic cost of living on Florida’s coasts, the fastest growth will be in the interior of the state.

Dr. Sam Chandan, Chief Economist of REIS, concluded the event with an historical and a current view of the nation’s economy as a whole. “July 2007 saw US equities markets at their peak; an all-time high following the years of the housing and consumption boom. Now in 2008, corporate profits are down, equities markets have fallen from their peaks, and we find more houses than households and slower consumer spending growth. We will need to bear with a further tightening of credit markets and a protracted period of slower consumer spending growth.” The next couple of years will be challenging; however, Chandan encourages confidence in the long-term resilience and flexibility of the US economy."

Closing comments by Saunders summarizes, “There is a slowing of activity and softening of pricing, but ultimately, pricing will come to reflect economic-based expectations. Even in this market, we fully expect to have more closings this year than last year.”

Dean Saunders, ALC, is a Licensed Real Estate Broker and owner of Coldwell Banker Commercial Saunders Real Estate. Since 1996, Saunders has provided professional land and commercial real estate services. Winning many national and regional awards, the former Florida legislator is considered an expert on land and conservation and is quoted in many real estate and business publications. For more information on the company and on Dean Saunders, please visit http://www.saundersrealestate.com/.