Florida couple’s colorful Sarasota cottage village houses 17 small businesses; a 324-apartment plan threatened demolition, but owners canceled the sale and took the property off market
A cluster of colorful cottages along Fruitville Road in downtown Sarasota has been spared from demolition, at least for now. The Historic Downtown Village, home to 17 locally owned businesses, was under contract to be sold to a developer who planned to replace the bungalows with a 324-unit apartment complex. In early October, owners Alex and Marlene Lancaster told tenants the deal had fallen through and that they would continue owning and managing the property, taking it off the market entirely. The reversal ends months of uncertainty for shop and restaurant owners who had been weighing relocation options, according to reports by Sarasota Magazine and MySuncoast.
A village of small businesses in bright cottages
The Historic Downtown Village sits on about 3.44 acres between Fruitville Road, Fourth Street, North Osprey Avenue and Gillespie Avenue. The site is filled with small, brightly painted cottages that house a mix of restaurants, cafes, boutiques and services. Among the tenants are FAM Cuisine, The Breakfast House, Siegfried’s Restaurant and Biergarten, The Artful Giraffe and Discover Sarasota Tours, all of which have become part of the daily rhythm for downtown residents and visitors.For many of these business owners, the cottages are more than just a lease. They describe the village as a community where customers know their names and where generations of families have worked. One owner told MySuncoast that the restaurant has been a constant in their life since childhood, with family members returning after college to keep the business running. That sense of continuity is what makes the threat of displacement so emotionally charged.The cottages themselves have become a local landmark. Their modest scale and vibrant colours stand in contrast to the larger buildings and parking lots that dominate many nearby corridors. For residents, the village offers a walkable collection of places to eat, shop and gather, all within a few steps of one another.
A 324-unit proposal and the prospect of demolition
The potential sale emerged earlier in 2026, when Tennessee-based Bristol Development Group approached the Lancasters with a proposal to redevelop the site. The plan, known as 1899 Fruitville, called for a five-story apartment building with six levels of structured parking and 324 residential units. The existing cottages would have been demolished to make way for the new complex, which also included amenities such as a gym, clubhouse and pool.The project went through the city’s review process, with the Planning Board unanimously approving two zoning adjustments tied to the design in August. As part of that approval, Bristol committed to preserving two grand oak trees and creating a publicly accessible green space at the northeast corner of the property. The proposal also included wider sidewalks, shade trees, underground utilities and drainage improvements intended to enhance the pedestrian environment along the block.For tenants, however, those public benefits did not offset the loss of their homes and businesses. Many said they were not surprised by the news, given the site’s location and zoning, but the idea of leaving a place with deep history brought up strong emotions. Some began actively looking for new locations, while others explored the possibility of moving the cottages themselves to a different site, as per reports.
Tenants weigh relocation and resistance
As the development review process unfolded, tenants found themselves in a difficult position. They needed to plan for the possibility of moving, but they did not know when they might have to leave or whether they could afford comparable space in downtown Sarasota. Laetitia Kepecz of FAM Cuisine said, as per Sarasota Magazine, that she had heard rumors that the deal might fall through but did not trust the news until confirmation arrived directly from the Lancasters.Kepecz further explained that finding another downtown location that would keep the restaurant close to its existing customers had seemed financially out of reach. Even when spaces were available, she said, the rents in downtown Sarasota made a move difficult to justify. The restaurant had been looking at options outside the downtown core, though she said they were open to anywhere that made sense. For now, she is relieved to have more time to figure out the future in a community they love.Some tenants took more concrete steps toward relocation. In July, Breakfast House owner Wendy Lee Goldberg purchased about an acre at 128 North Briggs Avenue, roughly a mile east near Fruitville Road and Tuttle Avenue. Her plan was to convert an existing house into the restaurant’s new home. She and neighbouring business owners were also exploring the idea of a Sarasota Bungalow Village, potentially moving several cottages onto the property and arranging businesses around a community green with shaded walkways, reported Sarasota Magazine.
Owners cite confidentiality and end the sale
In an October 3 email to tenants, Alex and Marlene Lancaster said the purchase agreement was no longer in effect and that they intended to continue owning and managing the property. They wrote that they were not listing, marketing or seeking a buyer, and that the property was not being offered for sale. The email did not explain why the agreement ended, only that the contract was no longer active.The Lancasters also addressed their silence during the development review process. They said the buyer had approached them directly, rather than responding to a listing, and that a nondisclosure agreement prevented them from discussing the potential transaction with tenants or the public. They wrote that their lack of communication was not intended to create uncertainty or concern, but that they were contractually required to maintain confidentiality.Philip DiMaria of Kimley-Horn, who represented the project through the city’s review process, confirmed that the transaction did not go through, reported Sarasota Magazine. He said he hoped any future proposal would incorporate the public benefits that had been planned for this development, including the preserved trees and green space. For now, however, those features remain part of a proposal that will not move forward.
What comes next for the cottage village
Real estate experts say the end of this deal may not end developer interest in the property. Mark Klecka, a realtor with Coldwell Banker Realty, noted that given the site’s location, zoning and previous redevelopment proposal, another developer is likely to approach the owners eventually. But for now, that remains a forecast rather than a certainty, as per Sarasota Magazine.The Lancasters told tenants their intention is to retain the property and provide the stability they had before the offer arrived. That message brought relief to business owners who had been living with the prospect of displacement for months. For now, the colorful cottages will continue to house the same mix of restaurants, shops and services that have defined the village for years.The story of the Historic Downtown Village reflects a broader tension in growing cities like Sarasota. On one side is the pressure to add housing density near employment centres and transit corridors. On the other is the desire to preserve small-scale, locally owned businesses and the character they bring to downtown neighbourhoods. The collapse of the 1899 Fruitville deal does not resolve that tension, but it does buy time for the cottage village and the people who depend on it.
