A slice of the former Sanibel Outlets has sold for $5.25 million.
The roughly 3.77-acre site will be transformed into affordable and workforce housing, with the approvals already in place for up to 200 units.
Property records show the sale closed on Jan. 29. The property was purchased by a limited partnership going under the name of Helm’s Bay Landing — the chosen name for the new housing development.
The former Sanibel Outlets sit two miles from the Sanibel Causeway in Iona.
The affordable and workforce housing is part of a larger mixed-use development known as Grande Calusa that will replace the outlet mall, destroyed by Hurricane Ian in 2022.
The larger development involves a 22.6-acre triangular site at Summerlin Road and McGregor Boulevard. With the inclusion of lower cost housing, the development qualified for greater density and height under the state’s Live Local Act, designed to tackle Florida’s affordable housing crisis.
Wendover Housing Partners is developing Helm’s Bay Landing.
According to its website, Wendover is a privately held real estate development, investment and management company specializing in multifamily affordable, workforce and student housing communities across the Southeastern U.S. Headquartered in Altamonte Springs, Florida, it has developed 54 communities over more than 40 years, with 3,334 units under development.
Helm’s Bay will provide “high-quality, attainable housing for the professionals and commuters who are essential to our coastal economy,” said Paige Rausch, a real estate broker with Aslan Realty Advisors in Fort Myers.”Helm’s Bay Landing isn’t just a housing project; it’s a vital piece of a larger puzzle. By integrating 200 workforce units into the Grande Calusa vision, Wendover and Lee County are ensuring that those who work in our coastal communities can also afford to live in them,” she said.
The project — located at 20350 Summerlin Road — is slated for a potential $20 million local grant, but it has not received final approval. The money would come from Community Development Block Grant-Disaster Relief funds awarded by the federal government to help Lee County with hurricane recovery.
“In the wake of Hurricane Ian, the transformation of this site represents a shift toward a more resilient and inclusive future for Lee County,” Rausch said.
LSI Cos., based in Fort Myers, is marketing the rest of the property for sale. The site for Helm’s Bay was already under contract when the brokerage company got involved with the people behind the Grande Calusa development, said Justin Thibaut, LSI’s CEO.
“That was in place prior to our engagement and we were not involved. That said, it’s an exciting step forward for the project and we look forward to sharing more information about what’s next for the residential and mixed-use components of the site,” he said.
County records show the entire property last sold for $26 million in 2016 to affiliates of Dahlmann Properties, which got its start in the student housing market more than 50 years ago.
According to its website, Dahlmann Properties — owned by the Dahlmann family — went on to purchase various landmark properties in the commercial sector, including hotels, offices, retail centers and apartments, with a focus on two locations: Ann Arbor, Michigan and Sanibel Island.
Doing some quick math, Rausch noted that the density for Helm’s Bay will be at more than 50 units per acre, and that the purchase price equated to a land cost of more than $26,000 per unit.
She expects the project to have strong occupancy from “day one.”
“This location serves as the primary labor funnel for Sanibel and Captiva. Since Hurricane Ian, the scarcity of workforce housing in this specific corridor has reached a crisis point. The Summerlin corridor is a ‘captive’ market for island-based employees,” Rausch said.
She added: “By securing entitled land at a price that supports workforce-level rents, this deal represents a rare alignment of private investment, federal support, and acute market demand.”
According to county records, the project cost is estimated at more than $78.2 million. It will include up to 102 affordable housing units, restricted to those earning 60% or less of the area’s median income.
Lee County estimates the median income for a family of four at $92,500.
Representatives for Wendover and the Grande Calusa development could not immediately be reached for comment.
According to the county, site improvements could begin immediately, with a development order in place (as long as other permitting agencies have signed off on the proposed development).
“No building permits (for vertical construction) have been applied for to date,” said Tim Engstrom, a county spokesman.
The development includes entitlements for another 297 multifamily residential units (with a 220-foot height limit), along with the rights to build retail shops, restaurants, art studios and offices. There could be a hotel, with up to 200 rooms, but it would require a rezoning, and adjustments to other commercial uses.
The name and the design of the development are inspired by the Calusa Indians, a once powerful tribe in Southwest Florida that used shell mounds as foundations for its towns, homes and ceremonial sites. It will be built 15 feet above sea level to make it more resilient, and include crushed shell pathways and large, open green spaces to make it more sustainable.
Laura Layden is a business and government reporter. Reach her by email at laura.layden@naplesnews.com.
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This article originally appeared on Naples Daily News: Parts of former Sanibel Outlets sold for affordable, workforce housing
Reporting by Laura Layden, Fort Myers News-Press & Naples Daily News / Naples Daily News
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