Local developer and entrepreneur Phil McCabe has agreed to sell a prominent downtown Naples building to Hoffmann Commercial Real Estate, according to the Hoffmann Family of Companies.
Hoffmann recently signed a definitive letter of intent to acquire the retail portion of the 5th and 5th building from the McCabe family. The three-story building at 465 Fifth Ave. S. features two floors of luxury condominiums above ground-floor retail shops and underground parking on the corner of Fifth Avenue South and Fifth Street South.
A pending sale price has not been released for that quarter-acre parcel, but the last recorded sale price was $4.7 million in October 2007 when McCabe purchased it, according to Collier County property records. That was before McCabe demolished the one-story strip of retail units there and redeveloped them into luxury real estate. McCabe completed the new 10,845-square-foot mixed-use building with upscale residences and retail spaces in 2018.
The market value for that real estate is more than $8 million, with a land value recorded at about $5 million and an improved value of more than $3 million, according to county property appraiser records.
The pending sale of the building follows McCabe’s sale last year of his iconic Inn on Fifth two blocks east on Fifth Avenue. He sold the 119-room local hotel he built and owned for more than 25 years to Pebblebrook Hotel Trust, a publicly traded real estate investment trust, for $156 million.
McCabe declined to comment Monday on the matter.
The 5th and 5th building’s aesthetics and quality represent McCabe’s attention to detail and dedication to further his exemplary vision for Fifth Avenue South. In addition to luxury residences with a rooftop deck and pool, the high-end retail space includes tenants, such as The Vine Room, Gelato & Co. and Jean-Pierre Klifa and Rouze women’s fashion boutiques.
“We’re honored to be purchasing the building from the McCabes,” said Naples billionaire David Hoffmann, chairman and founder of the Hoffmann Family of Companies. “They took a risk investing in the area and that risk has paid off. We’re happy to be part of their continued success.”
The property has a noteworthy history. When City Council voted 5-2 in favor of McCabe’s project in 2015 it was the first time that plans for underground parking were approved on Fifth Avenue South. The more than 40 underground parking spaces are for residents of the 11 multimillion-dollar, two- and three-bedroom condo units above.
The building project was delayed initially when an injunction was filed in late 2015 by a downtown property owner claiming that the underground parking constituted a fourth floor, violating the city’s height restriction for buildings in the downtown district. A judge ruled in McCabe’s favor in 2016.
McCabe’s redevelopment project meant the demolition of more than a half dozen storefronts in that strip of downtown Naples. The longtime eateries and other businesses that closed in the spring of 2016 included Cafe Luna, Avenue Wine Cafe, Bella Maria Cafe, Kohr’s Family Frozen Custard and Aadvisor Rentals.
Hoffmann Commercial Real Estate is one of more than 120 brands within the Hoffmann Family of Companies. Nearly 50 of those holdings are in Southwest Florida or Florida, including Hertz Arena and the Florida Everblades, the Old Collier Golf Club, Old Corkscrew Golf Club, Naples Transportation & Tours and the Naples Princess. Most recently, the Hoffmanns announced the acquisition of the award-winning Bleu Provence restaurant and property in Old Naples.
“We will continue to invest in Naples and grow our portfolio of properties and businesses in Southwest Florida,” Hoffmann said in a news release. “We’re here for the long haul. Naples is our home.”
