On Wednesday an auction for the 4.68 acres of land known as Gulf View Colony on Fort Myers Beach closed. There was only one qualified bidder who didn’t even make a bid, according to several of the property owners.
There are 58 owners at Gulf View Colony, which is located next to the Red Coconut property now owned by Seagate. Gulf View Colony was a mobile home community. It was completely wiped out by Hurricane Ian.
The reserve bid for the property at the auction was $11 million, The reserve price is the minimum the seller, in this case the 58 property owners, will consider. The GVC property, located at 2945 Estero Boulevard, is the 4th largest land parcel on Fort Myers Beach.
In 2024 the GVC property was listed for $19 million. Seagate, which now owns the Red Coconut property that is entangled in litigation, had a contract on the GVC land. It was for less than $19 million but that number was never made public.
Alex King from Premier Plus Realty said from a market perspective, the auction outcome is definitely something to pay attention to. “I’d frame it more as a signal, not a setback. For the island’s commercial market as a whole, it likely means: Buyers are being more selective and price-sensitive right now and due diligence is driving decisions more than momentum or speculation. That said, this doesn’t indicate a lack of interest in the island—far from it. Well-positioned commercial properties that are properly priced and aligned with current market realities are still attracting attention and activity. Overall, I’d describe this as a market adjusting, not declining—and those periods often create the best opportunities for both sides when guided with the right strategy.”
Realtor Dennis Wagaman from The Pier Group said this auction result reflects what he’s consistently seeing on the island—pricing is not aligned with how a property performs, which determines its value. “At $11M, the deal likely doesn’t make sense when you consider what can realistically be built, the cost to carry and construct it, and what that finished product is worth in today’s market. Those factors collectively define the land value. When the numbers don’t align, buyers don’t engage. There isn’t a lack of interest in the market, but buyers in this sector are fiscally disciplined rather than emotional. The properties that sell are those priced in line with what they can realistically support, while still positioning the seller to achieve the strongest possible outcome.”
What we know about that land as of now, according to the town of Fort Myers Beach code, is that a developer by right can build 15 units per acre, that would be 69 units on this property. That could increase 2.5 times if a developer wants to build a hotel on that property, or 172 rooms.
The Gulf View Colony property also includes a deeded beach access across Estero Boulevard.
What happens now? The owners of the property continue to try to sell the land and hope a buyer will come along with an offer they can all accept.
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