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First-timer thinks risk will pay off

A developer is confident that his carefully crafted townhomes will sell themselves.

By PAUL SWIDER
Published October 29, 2006

A funny thing happened to Bill Covington on the way to development fame and fortune: The market evaporated.

Covington has been building and remodeling luxury homes for 25 years but had never taken on his own development project.

Seeing others treat condo projects like ATMs, he decided to try his hand with Monterey Place, a seven-unit project of three-bedroom townhomes at 4001 Fifth Ave. N.

Now he proudly shows off his stylish, affordable and empty residences.

"Things were screaming here then," Covington said of early 2005 when he paid $160,000 for a little more than half an acre in an out-of-the-way place. "I'd been wanting to do this for years, so I thought I'd jump in."

Covington started building in 2006. He opened a model unit this month, but the last finishes on the other six won't be complete until November.

Covington said he has seen some interest, but nothing like what inspired him two years ago. Then people were buying and flipping units in projects that hadn't even broken ground yet. But, reflective of the measure-twice, cut-once caution of a builder, he decided to wait until his project was done before he started selling.

"In retrospect, maybe I should have presold," he says now. "But I think these are going to sell themselves. It just might take a little longer."

Covington didn't set out to cash in quickly. He said he took his time to create a comprehensive project incorporating his skills and understanding of not only upscale homes but also hurricane protection, another line of his work.

Covington said buildings with lots of corners are more expensive, so he designed one big rectangle that he planned to fill with nuances. He now has 1,450-square-foot units with wood floors, tubular skylights, iron stair rails and stainless-steel appliances, among other features.

"I wanted to make them affordable, but packed with nice things," he said of the homes priced below $285,000. "They've got a lot of appeal for not a lot of money."

The two-story buildings are concrete block and have high-performance windows exceeding codes for storm protection. The lot also sits 45 feet above sea level.

Now he'll have to "put on his marketing gear," Covington said, to convince buyers that a good, solid, livable home is a value even if it's not waterfront or on top of a high-rise.

"True, the market is soft and it makes you a little anxious, but that's how life is," Covington said. "If the market was stronger, I'd be looking to do this all over the place."

Paul Swider can be reached at 892-2271 or pswider@sptimes.com or by participating in itsyourtimes.com.

[Last modified October 28, 2006, 19:38:05]