Sure, here's the text with more spaced out paragraphs:
The creature looked to be quite powerful. Alex had no idea how a creature like that was down there, but seeing how he did not have what it took to learn more about it, he tried to forget and move forward.
He flew toward the island in the middle of the lake, turning back into his humanoid form the moment he set foot ashore. It was slightly bigger than he had expected — the distance had fooled his vision — but it was still a small piece of land. The main building there looked like a decent house, not a mansion or anything like that, but at least it looked decent, different from the 'houses' the other Aqua Morphlings lived in.