It appears that a mega deal to sell the luxury, Italian-inspired Tuscany Reserve community off Livingston Road near the Lee-Collier line is off.
On Monday, a prospective buyer received an e-mail from a community sales agent saying the developer, Bonita Springs-based WCI Communities Inc., “is no longer looking to sell it” and that marketing is gearing up again.
The sales agent gave two reasons why cash-strapped WCI has taken the community off the market: The tax advantage that it would have gotten in 2007 doesn’t exist anymore and the company had more closings than expected last month at several other projects, which has improved its cash flow.
Jerry Starkey, WCI’s CEO, wouldn’t comment, saying the company doesn’t discuss transactions.
“I haven’t heard anything. I think we would all know if it went through,” said David Auston, a Realtor with Amerivest Realty in Naples and a member of the Tuscany Reserve golf club.
WCI, headquartered in Bonita Springs, put the golf course community on a list of assets for sale earlier this year, as it looked for ways to stay afloat in a market where sales are sluggish and would-be buyers are walking away from contracts in droves.
Realtors, brokers and others who were familiar with the deal said they knew the courting buyer to be Anthony Salce, with Gulf Coast Development Group LLC in Naples. Salce couldn’t be reached for comment.
The deal was expected to close by the end of last year.
On WCI’s online message board, one observer on Dec. 24 said, “This puppy is going sideways. The deal for $63 million is now offered at $51 million and it may very well not close.”
Auston said 2007 was one of the best years for home sales in the community. Earlier this year, WCI announced a repositioning to offer more homes at a lower price.
In the fourth quarter of last year, WCI had an $84.9 million write-down for the community, reflecting a market loss in value.
WCI designed Tuscany Reserve as its most exclusive golf course haven and expected to sell a limited number of homes for $2 million to $5 million, with golf membership in the range of $200,000. But it never really took off.
Now, homebuyers can get into the community for less than $1 million.
It appears that the immediate priorities for WCI are to finish the clubhouse and to sell off the remaining inventory.
WCI invested hundreds of millions in the community to create an authentic Tuscan village with arched stone bridges, towering fountains, pavers and lush landscaping, including an impressive barrier berm of bushes and trees facing Interstate 75.
Greg Norman and Pete Dye co-designed its 18-hole golf course.
“The people in there, they love the golf course,” Auston said. “They love the neighbors. They love the place.”
(Naples Daily Newspaper, 1-9-2008)
Tuscany Reserve is currently under new ownership and it's likely that it will take some time for the new ownership to regroup and begin offering homes again. The word around the community is that homes will not be offered for sale again until the summer of 2009. The clubhouse will be the number one project for new ownership in the coming months. WCI attempted to sell a condo product from the 500k range a couple months prior to the sale of the community. That land devoted to the condo product will likely be turned to a villa product starting in the low 1 million range. Tuscany Reserve aims to be an elite luxury golf community in Naples. Anyone who plays the golf course and views the unique architecture will liken it to no other community in the United States.
