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Bullish in a bear economy

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By KENNETH KNIGHT

kknight@tampatrib.com

Published: December 30, 2009

NEW TAMPA - As the new kid on the block, Minto Communities LLC, a Canadian developer with roots in South Florida, plans to make its presence known in the Tampa Bay area's new home sales market.

Nowhere is it more apparent than in Grand Hampton, a stately gated and guard-protected community at County Line Road and Dunham Station Drive, west of Bruce B. Downs Boulevard.

The builder has opened a sales center and sold a house in its first six months of operations. Construction is nearing completion on two predesigned single-family homes. Work was scheduled to begin this month on two other houses to be ready by early next year.

"We sold a to-be-built home a week or so ago," Minto executive vice president Michael J. Belmont said last week. "And, we are working on a couple other deals. People are expressing a great deal of interest."

Minto officials hope the signs of a stabilizing housing market are real.

The company has bought land to build a town home development in FishHawk Ranch, south of Brandon, and homes in Lakewood Ranch in Sarasota County and Perico Island in Bradenton.

Founded 54 years ago in Ottawa, the community development and home building company imported its concept of upscale living to South Florida more than 25 years ago. Until now, the bulk of its projects have been in signature neighborhoods in Broward, Palm Beach and St. Lucie counties.

In New Tampa, where there are a slew of country club-style developments, many of them peppered with houses in foreclosure or awaiting short sale, Minto has defied the odds in hopes of turning a profit.

Minto's leaders are aware of the landscape, Belmont said. But with new buyers taking advantage of record low mortgage rates and a federal tax credit incentive, company officials are optimistic about Minto's expansion into the Tampa Bay, Orlando and Naples housing markets.

Last month Congress voted to extend the $8,000 tax credit for first-time buyers and expand the credit to ensure the housing market could sustain its recovery.

"With the slowdown in the market, we thought we could buy land for a reasonable rate," Belmont said. "That is what we did."

Early this year Minto bought six lots in Grand Hampton's Creekside neighborhood, with an option to buy an additional 18 lots.

The developer's strategy in New Tampa is to target real buyers.

"I think the people who are coming in are looking for houses," Belmont said.

In recent weeks, the Bay area has experienced an uptick in home sales, likely due in part to continuing falling median sales prices.

"There are some incredible deals out there," Belmont said.

Grand Hampton is a master-planned community of more than 700 contemporary designed homes created by a collection of upscale home builders, said Grady Miars, regional vice president at LandMar Group, the Jacksonville-based property management company that oversees the community and controls the homeowners association.

Among the other builders are William Ryan Homes, Standard Pacific Homes, Southern Crafted Homes, Mercedes Homes, Arthur Rutenburg Homes and ICI Intervest Homes.

When it's completed, Grand Hampton, framed by a sweeping entrance drive with fountains and lights, is expected to be the hub for 1,100 homes.

By early this month, 52 houses had sold in Grand Hampton this year, Miars said. Home prices ranged from about $150,000 to $690,000.

However, good news at Grand Hampton is tempered by reports of an abundance of foreclosed properties.

Miars said foreclosures are to be expected given the area's sluggish economy. "There is no way to prevent it," he said.

"It has not affected the growth activity and sales" in Grand Hampton, Miars said. "We are very thankful the buyers see the value of our community."

For Minto, a family-owned business that has built more than 65,000 homes in Florida and Canada, the key to success begins with its lavish 3,200-square-foot model home at 8007 Cypress Crossing Court.

The interior of the ground floor features an open floor plan with 10-foot-high ceilings and large, 18-by-18-inch floor tiles and large windows. The design includes a bonus room upstairs for entertaining.

The Minto lots in the Creekside neighborhood are 60 by 130 feet and each residence will have a pond or preserve view.

Home designs will range from 2,000 to 3,200 square feet, feature three to six bedrooms with up to 3.5 baths and most will have three-car garages, Belmont said. Homes prices start about $250,000.

Minto sales agent Nancy Diaz said she has been thrilled by the pace of activity at the model home. A steady flow of agents and interested buyers have dropped by for tours, she said.

Belmont said being the new kid on the block has its advantages.

"The Realtors are excited when you have a new home builder with capital and financially secure to build in this market," he said. "They are tickled pink."

Reporter Kenneth Knight can be reached at (813) 259-7413.

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