THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, October 7, 1995 TAG: 9510050320
SECTION: REAL ESTATE WEEKLY PAGE: 20 EDITION: FINAL
COLUMN: ABOUT THE OUTER BANKS
SOURCE: Chris Kidder
LENGTH: Long : 101 lines
Island real estate is a limited commodity. Eventually the land runs out. Once every virgin tract is developed, old buildings can be torn down or moved out of the way, but the opportunity for large-scale subdivisions like Monteray Shores and Pine Island is past.
That fact has not been lost on developer Bob DeGabrielle. He's already building 100 homes year on the Outer Banks, turning most around in four to five months. He sees the land running out - and he sees his company outgrowing the area's supply of skilled laborers.
``We're building more than 50 percent of the new homes built on the Outer Banks,'' says DeGabrielle. ``In order for us to grow, I need to be in other markets.''
DeGabrielle, who expects his company's sales to hit the $50 million mark this year, has enjoyed bittersweet success in real estate on the Outer Banks.
His first big development, Monteray Shores, introduced trendy Southwestern architecture to the beach just as the economy took a nosedive. Many viewed his Santa Fe theme as geographically misplaced.
The vacation community held its own, all things considered, but locals have relished rumors of DeGabrielle's financial ruin. I've been tipped-off about his impending bankruptcy, IRS seizure and other misfortunes so many times, I've begun to view the calls like Elvis sightings: Not one checked out.
The last rash of calls came in June on the heels of a Monteray Shores foreclosure sale notice published in the local newspaper.
In fact, the foreclosure concerned undeveloped acreage optioned several years earlier that DeGabrielle decided not to buy. Foreclosure was part of the legal maneuvering necessary to back out of the purchase. It had no effect on the Monteray Shores Homeowners Association or the community's individual owners.
``It was strictly a business decision,'' said DeGabrielle at the time. ``The sellers wanted a lot more money than I felt the property was worth. It doesn't make sense for me to go through with it.''
But Monteray Shores has not been DeGabrielle's big success. Instead, he's proved his ability to sell more property and build more houses with another developer's project.
In 1992, BD&A signed on with Turnpike Properties as the exclusive agent for Pine Island, a 385-acre community just down the road from Monteray Shores. The timing for Pine Island was excellent and DeGabrielle has presided over the fastest selling development on the Outer Banks.
His company, one of only a couple locally that offers an entire project package - architectural design and construction, interior design, and real estate brokerage and sales - under one roof, has built nearly 200 homes at Pine Island in barely two years.
In the process, ``Bob has built a large, efficient organization,'' says Dave Holton, BD&A corporate marketing director. The company has 65 permanent employees and on-going relationships with more than 200 subcontractors.
``We've got to look five and 10 years down the road,'' says Holton. Where's the next real growth area?''
Holton was hired to help point BD&A in the right direction. In a move that might be called deja vu, that direction is southwest.
Holton is talking diversification. He wants to see the company take steps to weatherproof itself, whether the storm is a hurricane that depletes the lumber market or a recession that drives away resort investors.
BD&A needs to work in different geographical markets, selling to different demographic markets, building a variety of different home styles, says Holton.
Starting this month, DeGabrielle will start building model homes in two mainland communities: Ironwood at Greenville, N.C., and Cypress Landing, a 900-acre Weyerhaeuser development on the Pamlico River outside Washington, N.C.
BD&A will be the preferred builder at Ironwood, says Holton. The 104-lot development, featuring stately brick homes along the fairways of a Lee Trevino golf course, is a year-round community just minutes from East Carolina University Medical Center.
At Cypress Landing, a 865-home retirement community that includes a marina and golf club, BD&A will be one of four builders to get Weyerhaeuser's nod. The homes here will focus on downsizing without giving up customization and craftsmanship, says Holton.
Breaking into the Beaufort County market is a smart move, says Washington-Beaufort County Chamber of Commerce CEO Bowman Lewis. Beaufort County is just beginning to catch on as a ``snowbird'' haven.
``We're the fourth or fifth largest county in the state land-wise,'' says. ``But we have only 45,000 people in the whole county. We can handle a lot more.''
DeGabrielle is working on plans for future phases of Edenton Bay Plantation which include an 18-hole championship golf course on the historic Hayes Farm property near downtown Edenton. Other mainland projects are in the works.
All of these projects keep DeGabrielle where he's most comfortable: at the top end of the upscale home market. All are golf course communities. With the exception of Ironwood, all are second or retirement home markets - markets with which his company has a successful track record on the Outer Banks.
``Eastern North Carolina is just exploding right now,'' says DeGabrielle, who intends to remain active in the local market where his company is headquartered. ``It's just a tremendous opportunity for us.'' MEMO: Send comments and questions to Chris Kidder at P.O. Box 10, Nags Head,
N.C. 27959.
by CNB