Former Phil-Moor lot finds a buyer

After sitting vacant for nearly six years, nearly 2 acres at the corner of Rehoboth Avenue Extended and Church Street were sold for $1.65 million to a Jacksonville-based private equity real estate fund.

Bob Sipple of Lighthouse Realty Fund, which bought the property Aug. 15, said the company plans to build 11 single-family homes on the 1.75 acre site. The property had been listed for more than $2 million.

Original plans for the site were called the Phil Moor at Rehoboth, a planned community of 19 townhouses. Melinda Ingram, Realtor with Prudential Gallo, said Ruggiero Construction, the Pennsylvania-based contractor on the project, went bankrupt, and the property was foreclosed on by First Niagara Bank. The property went to sheriff's sale and was then put on the market to be sold through Prudential Gallo.

Bette Gallo, the listed agent for the property, said Ruggiero's plan went awry when the housing market collapsed four years ago. Gallo said Ruggiero had run into problems installing the underground utilities and stormwater management system, although both were eventually installed. She said about $1 million in underground utilities has been invested in the site.

Ruggiero's original plan was to build 19 townhouses and an office, with the townhouses selling for $600,000 apiece. Sipple said the firm loved the location and was able to acquire the land at a good price. One reason the property may have sat vacant for so long, Sipple said, is that the original plan for 19 townhouses was not feasible. He said single family homes are a much better use of the lot.

While domiciled in Jacksonville, Lighthouse has purchased other distressed projects from banks and developers in the area, such as Ridings in Rehoboth in Lewes – purchased from Citizens Bank – and a 24-acre commercial parcel at the corner of Route 24 and Route 5, which was purchased from PNC Bank.