But pending sales see sharp increase, predicting better days ahead
 
January 2008 saw a dip in overall property sales in the local market, according to statistics pulled from the Sarasota MLS system. One of the primary reasons for the lull was likely the pending vote on a property tax reform package on Jan. 29, 2008, which [...]

By Michael Braga

Published Monday, Feb. 25, 2008 at 4:30 a.m.

ARCADIA — Ashvin Sriva-stava could have disappeared after his stone-casting company ran into financial trouble and he was forced to file for bankruptcy protection.

His wife, Pramila, lives in Thailand with their two children. She has a top-level position at PepsiCo. The family would have been fine.

But Srivastava was not about to leave his suppliers and creditors in the lurch and give up on his dream of building a nationally respected masonry manufacturing, installation and distribution business.

So after four months of rest and recuperation in Bangkok, he returned to Southwest Florida, sold off one of his commercial real estate properties, repaid more than 30 percent of the $5.1 million he owes to creditors and refreshed his business plan.

“We think he will be a survivor,” said Charlie Conoley, chief executive of Horizon Bank, who provided more than $1.5 million in loans to fund Srivastava’s fledgling business since 2004.

“He has tried to do, or he has done, everything we have asked.”

In a downward spiraling economy in which developers, builders, subcontractors and their suppliers are having an increasingly difficult time paying their bills, it is refreshing to some to see someone who has hit bottom, both emotionally and financially, start back up again.

“A lot of companies have had to learn this lesson — GM’s founder went bankrupt three times,” Srivastava said. “The difference is I’m trying to pay my creditors. I’m trying to pay back the people who believed in me.”

Srivastava, an India-born engineer with a doctorate in solid state science from Penn State University, launched a collection of companies under the Liberty Cast Stone umbrella during the real estate boom.

The stone facade on 1350 Main in downtown Sarasota is one of the results of Srivastava’s handiwork.

But like so many other Southwest Florida construction-related companies, Srivastava’s businesses got hit by the downturn.

When contracts for his masonry products dried up, he was unable to pay his 42 employees and was forced to shut down and seek bankruptcy protection, claiming assets of $2.7 million and debts of $5.1 million.

“I suffered a complete breakdown,” Srivastava said. “I just collapsed. I couldn’t function. I was bedridden for four months.”

But Srivastava’s wife would not let her husband give up. After returning from work at Pepsi in Bangkok, she would use the evening hours to deal with his creditors in the United States.

Her loving care and business acumen got Srivastava back on his feet. He returned to Sarasota in March and began working with the bankruptcy court to sell off land and buildings he had bought in Sarasota and Bradenton to house his manufacturing operation.

Last month, he was able to sell a 7.5-acre parcel, which he bought for $600,000 in 2005. The sales price was $1.4 million, and he used the proceeds to pay off a $1.22 million loan to Horizon and $5,200 in back taxes owed to the Florida Department of Revenue.

Srivastava is very proud of that achievement, and he believes he can repay other creditors as well.

“I filed for Chapter 11 to protect my assets and buy time,” Srivastava said. “I thought that by selling off the real estate, instead of just foreclosing, I would not only be able to serve the first mortgage holders, but the second and third mortgage holders would get something as well. I’m trying to make that happen.”

Besides selling real estate, Srivastava also has revived his business.

He has won contracts to make and install stone on a Hindu temple in Atlanta and to make stone umbrella stands for Tropitone, a outdoor furniture maker based in south Manatee County.

At the same time, Srivastava is building a 13,000-square-foot research, development and manufacturing center on eight acres off State Road 70 in Arcadia.

From there, he intends to supply masonry products to developers and road builders in the Carolinas and Georgia until the Florida market rebounds.

Srivastava also has an agreement with a masonry contractor in New England to make high-quality masonry products in that part of the country. Srivastava will supply the molds from Arcadia and his New England partner will cast the stone.

“He’s a mason,” Srivastava said of his unnamed partner. “He works on large projects, schools and government buildings, which are not impacted by the economy.”

Srivastava expects to start production in New England in June or July, and might open another mold-manufacturing operation in Mexico at the end of the year to supply the California market.

But the real payoff will come when Florida claws its way out of its current downturn, Srivastava said.

“Consider all the $5 million to $15 million homes that will be built on both coasts of Florida,” Srivastava said.

“Ten percent of the cost of construction is stone, and given that there are only a few high-quality manufacturers in the state, we should get a large share of the market.”

If Srivastava is able to get 10 contracts a year, that would amount to $2.5 million to $5 million in annual sales.

Add to that the potential to make precast highway dividers and tilt-walls, and annual revenues could be much higher than that.

“The strength of the market in Florida will always be there,” Srivastava said. “Otherwise, we would move the company to Atlanta or the Carolinas.”

Last modified: Monday, Feb. 25, 2008 at 3:15 a.m.

 

Original Story Here: http://www.heraldtribune.com/article/20080225/REALESTATE/802250355/1448

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Ashvin Srivastava is rebuilding his stone products firm after being caught in the severe construction downturn
var ArticleTools_Title =’Mason%20rising%20above%20his%20bankruptcy’;
By Michael Braga

Published Monday, Feb. 25, 2008 at 4:30 a.m.

ARCADIA — Ashvin Sriva-stava could have disappeared after his stone-casting company ran into financial trouble and he was [...]

8470 Enterprise Circle
Bradenton, FL 34202
Details

Annual Rent:
$18.10 Per SF

Total Available:
1,387 SF

Information
Spanish style architecture in the heart of the Lakewood Ranch Business District. This well-appointed office is ideal for an executive team, with three offices, reception and work area. Completely built out and never occupied, take advantage of this sublease while available.

Approximately 1,175 Sq. Ft.
Professional Setting [...]

6000 Cattleridge Boulevard
Sarasota, FL 34232
Details

Annual Rent:
$17.90 Per SF

Contiguous Space:
2,338 SF

Property Status:
Existing

Information
Ground Floor space in the Cattleridge Financial Building. Completely built out and available fully furnished for a truly turnkey, move-in ready office solution.

Available furnished or unfurnished
Approximately 2,000 sq. ft.
Professional setting in Cattleridge Financial Center
Local amenities and dining
Easy access to I-75

Directions:
West on Bee Ridge Rd. [...]

6429 15th St East
Sarasota, FL 34243
Details

Sale Price:
$4,325,000

Gross Building Area (GBA)
20,000 SF

Sale Terms:
Cash to Seller

Tax ID Number / APN :
1853410056 / 185340007

Property Description

14,200 sq. ft. Car Dealership and Showroom on approximately 4 AC zoned Heavy Commercial. Adjacent lot is undeveloped, approximately 4.25 AC zoned Heavy Commercial. Owner will divide.
7,000 sq. ft. of showroom / offices.
Spectacular [...]

County Administrator Jim Ley sent a letter to the Sarasota County Commission today outlining a number of ideas to jump-start the local economy.
“Ley pointed to the recently passed $1.4 billion sales tax, which includes funding for the construction of roads and public buildings as well as improvements to parks, public lands and economic development. These [...]

“So far, all signals from commercial real estate investment analysts point to very low delinquency and default rates” says Joseph Caton of Waterbury, Conn. based Hartford One Group. And even in the hardest hit areas, such as South Florida, there seems to be a feeling of much ado about nothing. Despite the mortgage debacle, there [...]

The Commercial Investment Division of the Sarasota Association of Realtors starts the new year off with a panel discussion on the outlook for commercial business in our region this Tuesday, Jan. 15 at 8:30 a.m. in the SAR Main Auditorium. The meeting is free and open to all CID members, and a continental breakfast will [...]

The Sarasota Young Realtors, receiving no funding from SAR’s budget, successfully raised almost $2,000 through monthly educational luncheons held at SAR.

Music, Drinks & Appetizers
December 12th at 5:30 PM
Siesta Key Oyster Bar
Call Teri Hartley to register: 941.923.2315
Or register online

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