Pride of ownership and attention to detail put Bonita-based McGarvey Development Company on the A-list of developer/builders in Southwest Florida years ago. However, the ability to anticipate changing needs in emerging markets is what catapulted the company to the top.

Founded in 1985 by John McGarvey in Moorestown, N.J., McGarvey Development developed, built and owned almost four million sf of industrial and office space before relocating to Bonita Springs in 1996. Since then, the company has cultivated a development portfolio of more than one million sf of commercial space. Besides being the developer, the company builds and owns the properties in its portfolio.

Although McGarvey Development has well-known commercial properties throughout Lee County, the Riverview Corporate Center remains its most prominent project to date. Located just west of U.S. 41 in Bonita Springs, it serves as a striking example that tilt-up concrete (a company signature) can look just as elegant as any CBS structure.

When McGarvey Development began building the center in late 2000, it raised the bar for Class A development throughout the area. Designed to include nine buildings on 24 acres along the Imperial River, the campus-style office park features large lakes, spectacular landscaping and head-turning double entries with illuminated waterfalls and granite signage. When it debuted, the stunning 305,000 sf project was considered the crown jewel in the company's high-profile portfolio. At the same time, many in the commercial community questioned whether the market was ready for a gem of that magnitude.

It was interesting to see the expressions on the faces of brokers when we announced the type and size project we were bringing to the market. It appeared that they just didn't believe it could be absorbed, said Charles Jans, a company vice-president. At that time, Bonita was not perceived as a mainstream business hub where such a project might be expected. It was viewed as remote.

Now, just four-and-a-half years after construction began, Riverview is situated at the epicenter of Southwest Florida's white-hot growth, and is 97% built out and 85% leased. We projected it would take seven years to build and lease Riverview, but circumstances played out better than even we had hoped, said Jans.

By year's end, the final building of 8,000 sf should be completed and ready for occupancy. Featuring picturesque river views, it is designed with a single corporate tenant in mind, although the space could be divided. Whoever leases it will be in good company among Riverview tenants such as Source Interlink, Colonial Bank and McGarvey Development, among others.

With the completion of Riverview, McGarvey Development is turning its attention to quadrupling its commercial holdings, which include:

¥ Westlinks Business Park, a 50-acre office/warehouse park in Gateway in Fort Myers. Just one building and 33,000 sf shy of buildout, the completed park will comprise 16 buildings totaling 650,000 sf including two charter schools.

¥ Mid-Metro Business Center. Also in Fort Myers and adjacent to Chico's world headquarters on Metro Parkway, the 20-acre complex includes seven office/warehouse units totaling 204,000 sf.

¥ Bonita Bay Executive Center. The two-building, 60,000 sf office center in Bonita Springs has been completely renovated and restored to Class A status.

¥ Bonita Bay Professional Court. Located adjacent to the Executive Center, the project contains seven buildings of approximately 3,500 sf each, of which three were developed and are owned by McGarvey Development

Although the company has a burgeoning residential arm, it's the new commercial projects that have McGarvey Development looking ahead. According to Senior Vice-President Bill Price, the company's goal is to expand its commercial holdings to five million sf within the next 10 years. While that may seem overly ambitious, it's well within reach for a company known for doing the impossible, such as delivering entire schools in less than a year.

That has happened several times since McGarvey Development began designing and building schools for Charter Schools USA in late 2002. Charter Schools USA came into the market in November looking for a company that could design and deliver a 60,000 sf school building for occupancy by the following school year, said Jans. McGarvey rose to the challenge, building its first K-8 charter school in Westlinks Business Park in time for the start of school in 2003. Since then, McGarvey Development has built other schools for the company on a tight schedule, including a 112,000-sf high school and gymnasium.

The newest charter school encompasses 77,000 sf and is scheduled for completion in October. It is the first structure in one of McGarvey Development's latest projects, the Mid-Cape Corporate Center in Cape Coral. Located on 32 acres, just west of Santa Barbara Boulevard, on Pine Island Road, it is the company's second largest commercial development to date. In addition to one or more outparcels, the project is being designed to include three flex buildings totaling 100,000 sf and four two-story office buildings totaling 175,000 sf.

Now in permitting, the flex buildings should be completed in early 2006, with 4,000-sf office/warehouse units available for occupancy during the first quarter. Blended lease rates will be based on approximately $15/sf for office space and $7/sf for warehouse space. Construction of the office space is expected to start after that, in mid-2006, with units from 1,200 sf.

Elsewhere in the Cape, the company has purchased 48 acres on Pine Island Road near the Pondella Road intersection. Although development plans are in the preliminary phases, the site will likely include an outparcel or two, with interior development totaling several hundred thousand sf of office/warehouse/distribution space similar to the Mid-Cape Corporate Center. A site design should be completed by year's end.

The company also has chosen prominent locations in high-growth areas for other new projects including:

¥ Eastlinks Business Park. The company recently acquired the
46-acre tract in Gateway, at the intersection of Gateway Boulevard and Daniels Parkway, to create a sister park to nearby Westlinks. The project is being planned to include 15-17 buildings totaling 475,000 sf. In addition to office buildings, the park will contain flex buildings with office/warehouse/ distribution space. Already, the company has a deal in the works with two tenants interested in splitting the first 60,000-sf distribution building.

McGarvey Development Leasing Specialist Matt Price is also talking with tenants in Westlinks who require additional space for expansion but don t want to leave the area. With so many buildings in our Gateway area portfolio, we have the ability to move tenants as needed, either within Westlinks or to the proposed Eastlinks project, said Matt Price. The flex buildings are ideal for growing companies with special needs or that require custom construction features.

¥ The International Center is a 14-acre development on Plantation Road in Fort Myers, adjacent to the Lee County Sports Complex. Construction on the site began in May. Thus far, McGarvey Development has completed a 77,000-sf charter school, which opened in August. By late October, the company hopes to complete the first of two flex distribution buildings providing at-grade space and limited office space. The first building of 33,600 sf is partially leased, with available space starting at 2,400 sf. The second structure will total approximately 28,800 sf. Both are designed for commercial users needing distribution and warehouse space in proximity to ground and air transportation, without the congestion of other nearby commercial corridors.

Chris O'Hern, co-owner of Kwik Kopy in Fort Myers, was the first tenant to sign at the center and will move into 6,500 sf in October. With 14 employees and projected sales of $2 million this year, the business needs more room than its current Presidential Court location can provide. Further, the company's focus has grown beyond printing and direct mail to encompass marketing, design and advertising services, and it is expanding to include a digital documentation and management business.
We thought about buying because we wanted to move into new, build-to-suit space, said O Hern. Instead, he signed a five-year lease at the center, in case the business needs to expand in the future.

¥ The Renaissance Office Building. The project will be developed on a commercial parcel off Daniels Parkway, adjacent to the Renaissance community at Daniels and I-75. Plans call for a 65,000-sf Class A office building with three stories of office space over parking with I-75 visibility. Units start from 2,000 sf and are priced at approximately $21/sf + CAM. We expect it to be one of the nicest, most stylish structures we've built yet, said Jans, noting that the lobby and common areas will feature marble, granite and other top-quality finishes. Target tenants include national corporations that want to project a polished image in a prestigious environment.

When it opens early next year, Jans said he believes the new office building will help spur additional office construction along I-75 and its interchanges, where the bulk of development has been confined largely to fast food restaurants, gas stations and car dealerships. However, because the development is something of a novelty in that area, McGarvey Development is bringing a broker in-house to market the project initially.
Typically, we prefer working with brokers on a non-exclusive basis because tenants come from so many varied sources, said Jans. We made an exception with Renaissance because of the product type and its location outside of traditional office areas.

He's quick to add that broker participation is always welcome at all of the company's developments and that it has gone to great lengths to encourage such participation. Many brokers believe they're competing with us and forget that we're in the development and building business, not the brokerage business. Unfortunately, many don't realize that we rely on the commercial brokers to present prospects and maintain an active role during the process. McGarvey Development has always offered a full market commission.

Still, only about 30% of the company's lease deals come from brokers, with the remaining 70% from drive-bys who see McGarvey Development's on-site project signs. Jans said he'd like to reverse those percentages, particularly as the company identifies new development opportunities and expands in Lee County and beyond.

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