Mayhugh Realty, Inc., isn’t your typical Southwest Florida real estate company. Led by broker/owner Chuck Mayhugh, the independent real estate firm has played a major role in shaping where and how parts of Lee County have grown for more than 40 years.
Mayhugh began his career in the 1970s. While his ability to assemble and entitle land tracts helped launch his business, it also helped put numerous large-scale developments on the county map. Among them: Daniels Park Commerce Center; Southwest Metro-Colonial Subdivision; Rock Fill Industrial Park; O’Brien Motors; The Renaissance; The Rookery; The Willows; Highland Pines; Plantation Preserve; Telegraph Creek Estates; and Hickory Run.
Mayhugh also has contributed significantly to the commercial community by working tirelessly to enhance area infrastructure, which in turn has increased property values. For example, he was instrumental in spurring development along and around Metro Parkway through his efforts to get Metro extended southward from Colonial Boulevard to just north of Idlewild Street. A decade later, he played a critical role in the Plantation Road Extension from Colonial Boulevard south to Six Mile Cypress Parkway by convincing the Southwest Florida Regional Planning Council, Lee County and the City of Ft. Myers to change the local traffic ways map. The move not only provided another major north/south roadway, it also spurred the sales and development of vacant land in the area.
Today, Mayhugh and his company continue to facilitate real estate transactions involving virtually every sector of commercial real estate, from residential/ multi-family, retail, office and industrial/warehouse space to land and ground-up development. In addition to residential and commercial sales, leasing and management, the full-service brokerage also provides consulting, marketing and development services to clients that include owners, investors, landlords and tenants.
Associates & Growth
Even as its book of business has grown, Mayhugh Realty has always been careful about adding new sales associates and staff. “We’re selective,” says Mayhugh. “We seek seasoned professionals who reflect well on the company’s principals. We believe in providing a high level of service to our sellers, buyers, landlords, tenants and investors.”
He found the perfect addition earlier this year when Bryan Burchers joined broker associate Chase Mayhugh, CCIM (Chuck’s son) and sales associate Ronnie Delfino on the commercial team. Although Burchers is the newest sales associate, he is no stranger to the industry or the area. A native of Punta Gorda, Burchers grew up in the real estate business (his father, Sam, was one of the original developers of Punta Gorda Isles) and over the last 30 years has sold or leased office, retail and industrial properties to numerous national and regional companies.
“I wanted to join a real estate firm with a reputation of excellence among their clients and respect from other commercial brokers,” says Burchers. “ Mayhugh Realty may be small compared to the national companies, but they’ve closed many of the most significant transactions in this area.”
Since joining Mayhugh Realty, Burchers has been involved in the sale or lease of more than 100,000sf of office, retail and industrial properties from Brandon to Naples. He says he expects an equally robust year in 2017.
Entitled Land
Currently, Mayhugh Realty represents the owners of two parcels totaling approximately 65 acres on the southwest corner of Plantation Parkway and Colonial Boulevard with access to Metro Parkway. Because governmental permits are in place, the property could be developed as a major mixed-use project with commercial/retail, industrial and multi-family components.
Options include selling the land to an outside developer or selling the land to investors and assisting with vertical development. “It depends on what’s in the best interests of our clients,” notes Chuck Mayhugh. “What’s best for them is best for us.”
The firm also represents acreage on Buckingham Road, some of which was recently sold to a developer who is leasing it to Dollar General for a new location. “What makes this site unique is there’s a very limited amount of commercial land in Buckingham,” says Delfino, noting that “its C-1A zoning is very unusual for that corridor.”
At present, Mayhugh Realty is marketing the remaining 3.44 acres to businesses and developers that will complement the Dollar General store now under construction.
Retail Redevelopment
Income-producing assets are among the most highly sought investments, with well-located retail centers in greatest demand. In recent years, many such properties were purchased out of foreclosure and profitably rehabilitated.
“We’d follow these distressed assets through the courts and make offers once they were in receivership,” says Chase. In working with these value-add properties, Mayhugh Realty helps stabilize and improve them, and markets them for sale or lease when the time is right.
That strategy has proven successful for several of the firm’s clients who purchased aging shopping centers along some of Southwest Florida’s most desirable commercial corridors. These properties include:
- Plymouth Plaza and Regal Plaza (South Tamiami Trail)
In 2010, Chase represented NYFL Commercial Holdings in purchasing Plymouth Plaza and Regal Plaza out of receivership. Mayhugh Realty was then hired to lease, stabilize and improve the twin properties, consisting of 70,000sf total, for eventual sale. At the time, there was a vacancy rate of approximately 40%.
“By reducing operating expenses and offering lease incentives to attract the right tenant mix, we created a true neighborhood retail center,” says Chase. In addition to signing a salon, an insurance agency, a daycare center and traffic-generating restaurants, he helped Hertz Car Rental expand from 1,200sf to 2,500sf. The centers are now 98% occupied and offered for sale as a package at $9.8 million.
Chase says this type of Class-B retail space is in high demand in Lee County. “It’s affordable for mom-andpop retailers that want good access and great visibility without the expense of new, Class-A space,” he says. “Class-A retail landlords typically want national credit tenants, anyway. This space fills that void.”
- McGregor Village and The Design Center (McGregor Boulevard)
Delfino reports similar scenarios at two prominent shopping centers the firm represents for lease on McGregor Boulevard. One is the former Pewett Center, which Mayhugh Realty sold in December 2015, and is now in the process of redevelopment by the new owner.
Recently renamed McGregor Village, the 10-building property totals approximately 30,000sf. Of the total, 12,000sf are available for lease in units ranging from 550sf to more than 2,000sf.
In addition to repairing or replacing building roofs and HVAC systems, the new owner has refreshed and landscaped the parking lot, and restored some of the building interiors to a vanilla shell state. The buildings’ exteriors are also getting cosmetic overhauls.
Coral Dentistry is the newest tenant to sign on, joining Colleoni’s Eatery and Bakery, which opened earlier this year in the former Rene’s Restaurant space. Delfino says he’s fielding inquiries daily from a variety of potential tenants as the property’s transformation continues.
Just south of McGregor Village, The Design Center is experiencing a renaissance. It recently added two high-profile tenants, chocolatier Norman Love and Stephen Todd home furnishings, which relocated from Cape Coral. They join anchors First Watch and Melting Pot, with Spada Day Spa & Salon in an adjacent building.
The only vacancy in the center, which totals 45,000+sf, is a 12,000sf former gym space, which could be divided into smaller spaces for multiple tenants or occupied by a single tenant. “I think an art gallery or studio would work well in there,” says Delfino. “But it’s ideal for any business that wants high visibility, convenient access and proximity to upscale residential developments.”
New Retail Development
New Class-A retail space in a prime location is virtually non-existent in Lee and Collier counties, which makes Shoppes at Cypress Terrace such a rare find. Located at the signalized corner of U.S. 41 South and Cypress Terrace Drive, the 8,700+sf center is surrounded by national retailers such as Costco, Super Target and Barnes and Noble, to name a few.
It sits on an outparcel that was included in the 2009 sale of the adjacent 30,000sf Palm Professional Center. Chase says he negotiated “a terrific deal” on behalf of his client, knowing that the distressed office center could be rehabbed but not knowing what to do with the outparcel.” Rather than sell the infill site, he and the owner agreed to develop it.
“It was designed and built with considerable thought,” says Chase, who oversaw every aspect of construction. “We wanted something that was aesthetically appealing but that would give tenants excellent visibility and individual signage.” Their concept was well received.
The center was 60% leased prior to its September completion and has only two 1,500+sf spaces remaining for lease. Chase says he’ll wait for the right lessee and expects to sign a national credit tenant to join Zoom Tan, Tide Dry Cleaning and uBreakiFix at the center.
“The fact that it’s across from a major retail center and just south of one of the area’s busiest intersections doesn’t hurt. Day and night, there’s a ton of traffic drawn to that area.”
Industrial/Warehouse
Demand for industrial space has rebounded tremendously, thanks to a strengthening economy and a boom in new construction. Remodeling and renovation work is also on the rise, as landlords can now afford the repairs and improvements they’d postponed during the downturn.
“Industrial has a lot of stimulants right now,” says Chase. “But because it happened so abruptly — in the last 12- 18 months — we don’t have the supply to meet the demand.”
He says that newer industrial buildings in the 5,000 – 10,000sf range are the hottest commodities in shortest supply. Also, due to dramatic changes in industrial design and equipment, vertical space is prized. “These days a lot of people are stacking up to 18 or 20 feet. They may be leasing 5,000sf, but if they can stack as if they have 10,000sf, their lease rate is much more competitive.”
Although tenants and buyers have limited options for newer space, Chase says there are plenty of older industrial properties on the market. “However, they tend to have obsolete designs and undesirable elements such as low clear heights, low overhead doors, insufficient yard space and no drive-through bays.”
He adds that while the market is poised to build new industrial space, that’s unlikely to happen until lease rates rise to $9-$10psf gross from their current $7.50-$8. Also, despite reasonable land costs, most developers are reluctant to build on spec right now because of skyrocketing construction costs. There’s also a shortage of qualified labor.
“But that hasn’t stopped us from getting deals done,” says Chase. “A good building in a good location sells almost immediately.”
He and his team agree that going forward, technology will continue changing the way industrial and retail space is designed and used. Big-box retailers face the greatest pressure due to the popularity of smaller neighborhood centers and online shopping.
At the same time, e-commerce has helped industrial space, as retailers require local warehouses where they can package and distribute their goods for delivery to local customers. These third-party logistics firms (known as 3-PLs) typically lease 2,000-5,000sf to use as small-scale fulfillments centers.
“I leased space to two companies that do this,” says Chase. “It’s the latest thing in industrial space.” He predicts this type of distribution facility will proliferate locally to meet online shoppers’ escalating demand for speedy deliveries.
The Future
In the upcoming year, Mayhugh Realty will rename its commercial division Mayhugh Commercial Advisors, retaining the original name for its residential division. The change is expected to enhance the individual identities and branding opportunities for both.
“Advising our clients is really what we’ve always done,” says Chuck Mayhugh. “We want a name that better reflects our primary service.” The firm also plans to unveil a redesigned logo, which it will introduce gradually via its real estate signs and marketing materials.
What won’t change, Mayhugh adds, is the firm’s commitment to its clients. “You can do all the marketing in the world and create dazzling presentations, but in the end, personal relationships, service and referrals are the keys to our success. That’s what it’s all about and always will be.
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