Buying in bulk

ENGLEWOOD -- A New Jersey-based company is buying 27 new homes out of foreclosure and
marketing them in a manner that echoes back to Florida's land boom days.

Everyone can remember when people camped out overnight in SUVs for a chance to buy condos
at two to three times today's going rate. Today, a broker for J-11 Properties, LLC is taking
reservations on 27 1,579-square-foot villas that are selling for $139,990 and $159,990.
Set to close March 20, the deal between J-11 and Fifth Third Bank is being brokered by Brian
Corcoran of the BRC Group, LLC in Boca Grande.

Corcoran declined to reveal the sales price, saying only it was between $2 million and $3.5
million.

The bulk buy includes seven villas and 56 vacant lots at Arlington Cove and 20 villas at
Hebblewhite Court, along with development rights. Both developments are on State Road 776
north of Dearborn Street.

Corcoran has taken 13 reservations on the villas since word went out a week ago. He was
enthusiastic Tuesday as he toured the properties with his brother and partner, John Corcoran.
"These are not investors," Corcoran said. "Every single one has said they plan to use and own it
as a vacation home or primary residence."

So why make a seemingly risky bulk buy in a market where no one can see the bottom? "Like
anything, if the price is right and the value is there, there's less risk," said Kurt Scrudato, a Pine
Island-based partner in J-11 Properties.

Based in New Jersey, J-11 has five partners with experience ranging from construction and
development to management and law. The partnership was formed specifically for the
Englewood buy, which is a cash deal, Scrudato said.

"Southwest Florida is one of hardest hit in country so the value is probably the greatest in that
market," he said. "It's where you get the biggest bang for the buck. We're considering other deals
in this area."

Peter Zalewski is a consultant, broker and principal with Condo Vultures Realty LLC in Bal
Harbour near Miami. He has submitted 46 offers on bank-owned projects on Florida's west coast,
including some locally. In the current market, bulk buyers are generally paying $50,000 or less
for similar sized units and less than $10,000 for lots, Zalewski said.

Three of the 23 villas built at Hebblewhite Court in 2006 and 2007 sold for $303,000, according
to Jan Keith, a broker with Charter Real Estate in Venice.

Keith has a sign out front one of the three, now being sold as a short sale. Interest has been high,
she said.

"We have been inundated," she said. "There is a lot of inventory out there but not a lot of brand
new homes at this price."

Visiting family in Englewood from Maine Tuesday, Chuck Thompson said he's watched the
prices come down on the villas at Hebblewhite Court.

"We've been looking at these units since they were built three years ago," Thompson said. "For
me, this is an amazing deal at this price. Now if we can just sell in Maine..."

Local Realtor response to the pricing on the villas has been good, Corcoran said. Of the 13
reservations, 12 came through Realtors.

"There's plenty of stuff on the market at $139,000 built in the 1960s, but nothing like this,"
Corcoran said.

Bulk deals are hard to find, difficult to negotiate and not easy to take to closing, Corcoran said.
Six or seven other bidders went after the deal J-11 Properties plans to close next week.

"All these developers we're trying to get bulk sales on are are in foreclosure, receivership,
upside-down or in short sale," Corcoran said.

Great deals notwithstanding, Zalewski said he is still cautious, however.
"I would agree this is a way that this whole boom and bust thing is righting itself," he said, but
added that "real estate in Florida today is only worth what the rent will generate."