Press Release: ALLETE Properties Closes on First Phase of Poperty Sale to Lowe
$13 million sale represents first phase of Sawmill Creek, an upscale golf course community.
July 25, 2007 – ALLETE Properties has closed a $13 million sale of land representing the first phase of Sawmill Creek, an upscale residential golf course community to be developed by Lowe Destination Development in
The closing, which had been expected, will be included in ALLETE’s second quarter earnings report.
Lowe’s overall development plan for Sawmill Creek includes 1,469 housing units, a retail and office marketplace and a Jim Furyk signature golf course, along with a community park and school site. Phase one includes the construction of 406 residential units, the golf course, clubhouse and other amenities. Work is expected to begin this year, with the golf course scheduled to open for play in 2008.
“We’re proud of the relationship we’ve built with Lowe that will allow this high-quality community to be developed over the next few years,” said ALLETE Properties President Laura Holquist. “This development will enhance the value of the surrounding property we are marketing in
The Sawmill Creek project is located within
ALLETE Properties entered into the contract with Lowe in May 2006. The sales agreement calls for Lowe to purchase the land in phases over the next several years.
Lowe Enterprises Investors and Lowe Destination Development are wholly-owned subsidiaries of Los Angeles-based Lowe Enterprises. A leading real estate development, The sale involved 698 acres of property in Palm Coast Park purchased from the ALLETE (NYSE: ALE) affiliate by Lowe Enterprise Investors, a subsidiary of Los Angeles-based Lowe Enterprises, a leading national real estate firm.
Why More Private Communities
In all of your conversations and research has anyone made any sense as to why the persistent focus on these \”upscale\” communities in this area? From what I understand, none of them have filled. And as you reported, the Conservatory seems to be a \”bust\”. What is the thought process? It appears that some people have in their heads that this will be a luxury area (which it is not, and does not ever seem that it will be) and no one can tell them differently. It’s amazing to me. What world are these people living in? And quite frankly, they appear to be much of what is holding your industry back by driving price up with \”speculation\” and destroying the price of golf (or the courses themselves . . . Palm Harbor). What is going on?