This article discusses an important decision in the makin in Orange Beach, AL. Times are tough, but "the show must go on". In theory, money spent now will pay for itself down the road.
ORANGE BEACH - It might cost $20 million for Orange Beach to help preserve the city's past, but elected officials learned this month that they are right to believe they'll recoup that money.
A Tampa-based consultant has suggested that a municipal marina catering to Orange Beach's storied charter fishing fleet would likely lose money in its first year, profit by year two and eventually pay for itself in the end.
The City Council decided to purchase storm-battered Walker Marina on Terry Cove for about $9.6 million in early 2005 and has since then contemplated building a homeport for the charter fleet, which has steadily lost dock space in the last decade as marinas were converted to condominiums with private moorings.
On Wednesday evening, a capacity crowd attended the report's unveiling. Authored by Linwood Gilbert Jr., a Florida appraiser who specializes in marinas, it concluded that 66-slips, a restaurant, a few thousand square feet of retail space, a banquet hall, underground fuel tanks and a parking deck would be a prudent investment should the currently cash-strapped city wish to proceed.
In effect, boat captains, deck hands and others whose livelihoods revolve around the health of the for-hire fishing business asked the council to make haste. Construction could last two years and elected officials were urged to start now while the real estate market is slow and redevelopment pressures - not to mention building costs - are relatively low.
With 301 licensed charter boats on Alabama's Gulf Coast - many of which are without dock space or working out of inconspicuous spots, like their homes - the city shouldn't have trouble finding 66 occupants, said Bobbi Walker, president of the Orange Beach Fishing Association.
"It is a sanctuary, and that's what they need," Walker said. "I wouldn't be sitting here begging you for it, nor would these captains be standing here begging you for it if there was not a need."
All told, 17 people in the fishing business spoke in favor of the project Wednesday. The sentiment was split between those who were content with their current docking arrangements but saw the project as a boost to the entire fleet, and those who were eager to sign leases.
"I'm going to need a home to finish up my career here," said Joe Garris Jr., a 37-year captain who is also a councilman in neighboring Gulf Shores.
In short, representatives of two existing marinas, however, said that taxpayer-subsidized competition could squeeze their already hurting businesses. Patti Link, who is general manager at the 55-slip San Roc Cay and also oversees the 74-slip Bear Point Marina, said city officials are underestimating the expenses of running a marina and are foolhardy in their assumption that retail and dock space will always be full.
"Marinas around here are crying for boats, they're los ing money," Link said. "(The city) will not make money there, I can guarantee it."
The marina property is nestled between the 115-slip Sportsman's Marina and the private Mess-about-Marina on a sloping, oak-dotted seven acres. The boat basin aligns neatly with the opening of Perdido Pass offering a straight shot to the open Gulf.
Walker Marina was splintered in 2004's Hurricane Ivan, and the property was bought by former Health South CEO Richard Scrushy, who planned a condo project there. When those development plans fell through amid Scrushy's fall in the HealthSouth accounting scandal, the property became available through one of his relatives. Seeing a chance to lock up a slot of waterfront to ensure the charter fleet's future, Orange Beach bought the property using $7.6 million in cash and a lot on Wolf Bay that was valued at $2.1 million.
Since then, elected officials have vetted various designs, deciding on what was then a $17.4 million plan last June. Officials now expect the price to come closer to $20 million, and Gilbert's analysis accounts for the higher cost.
Mayor Pete Blalock said bids will be sought so that officials have precise numbers on which to base a decision, and warned against interpreting that as a sure sign the marina will be built.
The appraiser's 61-page report is detailed. It recommends a 4,000-pound capacity icemaker so that ice may be sold cheaply, but still at a profit, for instance. It also assumes some things: that City Hall would oversee the property, that captains would pump gas and tidy the fish-cleaning stations, that the slips and the shops stayed leased.
"The bottom line is that based on the cost and the bond issue amount that the marina, under normal circumstances, would break even to a small loss the first year," Gilbert said. "The second year, all things being equal, it should be marginally in the black and continue in the black thereafter."
Saturday, August 9, 2008
Friday, August 8, 2008
Gulf Shores foreclosures and short sales
The Gulf Shores real estate market is all a buzz; most agents are talking about great deals with foreclosures and short sales.
Companies are selling about 1-2 short sales per month in addition to the regular sales with “motivated” sellers. The lenders do not want to take the homes/properties back from the owners and would rather work something out but if a workout is not possible realtors are given 2 – 4 months to sell the property short before it is foreclosed.
As I look at the statistics of sales of improved properties sold since the beginning of this year, I find that properties are selling at about 90% of the asking price closing in 30 days or less. The only seller owned properties that are selling are those who have reduced their asking prices to a point that represents today’s values. If we look at how today’s value is determined; it is based on Comparable Properties SOLD with in the last 3 to 6 months.
The question of what type of transaction a buyer should concentrate their efforts on buying is simple once the buyer understands the realities of value and the position of the sellers/lenders.
The lenders in both Short Sale and Pre-Foreclosure transactions will generally base the eventual selling price of the subject property on Sold Comparables and will typically negotiate with the buyer somewhere between 8% – 12% off that new fair market value. This new fair market value will be determined by a BPO or by a qualified appraiser and in most cases the outstanding mortgage balances do not enter into this calculation.
When a property is Sold at the Courthouse steps the lender has a representative there protecting their asset, bidding on the subject property against the other bidders in an attempt to insure that the selling price will be at or above the mortgage amount.
Unlike traditional Courthouse step auctions that most people are familiar with the value of the property in today’s real estate climate is less than the outstanding balance of the mortgage. So the eventual selling price will be more representative of current market values and less like a bargain.
Motivated sellers, those who have been reducing their asking prices in an attempt to find today’s fair market value do so by having their REALTORs provide them with Sold Comparables, that is properties sold that most closely resemble their property and they typically increase that amount by about 10% in an effort to give a little back to the buyer during the negotiations. Most sellers believe that buyers feel as though they are getting a value if the seller comes off his price 5% - 15%.
I hear many times from unrealistic buyers that they will wait until they can get a real “Deal”. Here is the quick math. If an owner’s property (including REOs) costs them $50,000 per year on a property valued @ $500,000 (assuming the property is priced at current fair market value) why would they come off their number $100,000? It has become common knowledge that this real estate market is at or pretty close to the bottom of the cycle; if over the next 18 months inventory and values stabilize the only direction left to turn is upward. If an owner opts to keep their property for this period and then sell they lost $75,000 rather than the $100,000 they were going to lose. If they choose to hold it longer, based on appreciation their losses will begin to diminish; the longer they keep the property the more their position improves.
My recommendation: buyers should look for properties priced at fair market value and negotiate aggressively. The deals are found when price, terms and conditions of the sale are outlined in a contract. The sellers respond best when they can see the pain and suffering they are going through is about to end, this is the motivation. Expect that properties that were bought by the sellers prior to 2003 to have equity and more wiggle room compared to properties bought in 2004 and 2005 where the sellers in nearly all cases are upside down and have to come out of pocket at closing – that’s no wiggle room – if the sellers have the money or the assets to bring a check to closing you’ve got a deal. If they don’t then there is a Short Sale on the horizon and the eventual selling price of the property will have little or no change.
Call today for information on foreclosures or short sales
Companies are selling about 1-2 short sales per month in addition to the regular sales with “motivated” sellers. The lenders do not want to take the homes/properties back from the owners and would rather work something out but if a workout is not possible realtors are given 2 – 4 months to sell the property short before it is foreclosed.
As I look at the statistics of sales of improved properties sold since the beginning of this year, I find that properties are selling at about 90% of the asking price closing in 30 days or less. The only seller owned properties that are selling are those who have reduced their asking prices to a point that represents today’s values. If we look at how today’s value is determined; it is based on Comparable Properties SOLD with in the last 3 to 6 months.
The question of what type of transaction a buyer should concentrate their efforts on buying is simple once the buyer understands the realities of value and the position of the sellers/lenders.
The lenders in both Short Sale and Pre-Foreclosure transactions will generally base the eventual selling price of the subject property on Sold Comparables and will typically negotiate with the buyer somewhere between 8% – 12% off that new fair market value. This new fair market value will be determined by a BPO or by a qualified appraiser and in most cases the outstanding mortgage balances do not enter into this calculation.
When a property is Sold at the Courthouse steps the lender has a representative there protecting their asset, bidding on the subject property against the other bidders in an attempt to insure that the selling price will be at or above the mortgage amount.
Unlike traditional Courthouse step auctions that most people are familiar with the value of the property in today’s real estate climate is less than the outstanding balance of the mortgage. So the eventual selling price will be more representative of current market values and less like a bargain.
Motivated sellers, those who have been reducing their asking prices in an attempt to find today’s fair market value do so by having their REALTORs provide them with Sold Comparables, that is properties sold that most closely resemble their property and they typically increase that amount by about 10% in an effort to give a little back to the buyer during the negotiations. Most sellers believe that buyers feel as though they are getting a value if the seller comes off his price 5% - 15%.
I hear many times from unrealistic buyers that they will wait until they can get a real “Deal”. Here is the quick math. If an owner’s property (including REOs) costs them $50,000 per year on a property valued @ $500,000 (assuming the property is priced at current fair market value) why would they come off their number $100,000? It has become common knowledge that this real estate market is at or pretty close to the bottom of the cycle; if over the next 18 months inventory and values stabilize the only direction left to turn is upward. If an owner opts to keep their property for this period and then sell they lost $75,000 rather than the $100,000 they were going to lose. If they choose to hold it longer, based on appreciation their losses will begin to diminish; the longer they keep the property the more their position improves.
My recommendation: buyers should look for properties priced at fair market value and negotiate aggressively. The deals are found when price, terms and conditions of the sale are outlined in a contract. The sellers respond best when they can see the pain and suffering they are going through is about to end, this is the motivation. Expect that properties that were bought by the sellers prior to 2003 to have equity and more wiggle room compared to properties bought in 2004 and 2005 where the sellers in nearly all cases are upside down and have to come out of pocket at closing – that’s no wiggle room – if the sellers have the money or the assets to bring a check to closing you’ve got a deal. If they don’t then there is a Short Sale on the horizon and the eventual selling price of the property will have little or no change.
Call today for information on foreclosures or short sales
Thursday, August 7, 2008
Simply raising a hand could net a 142-acre horse farm or 35 Gulf-front condominium units — if you're the highest bidder.
It's summertime, and the auctions are hot in Baldwin County and becoming more and more common.
Homeowners, developers and, of course, banks are turning to auction companies to unload property. Some owners aren't desperate, but want to sell what they hold quickly and move to other investments. Others are feeling the economic pinch of paying interest on unsold lots or see foreclosure clouds looming over their excess inventory.
There have been successes: Last week, 50 condo units at Emerald Greens off Alabama 59 in Gulf Shores, adjacent to Craft Farms, sold at absolute auction for $6,393,750, according to National Auction Group. There were 86 registered bidders from nine states, plus Kuwait and Canada.
And some not-so-successful ventures: The owners of 2,000 acres along 7 miles of waterfront on Perdido Bay in Lillian canceled a planned auction when none of the 27 potential bidders were interested in buying big tracts, according to National Auction. Instead, the owners sold four tracts totaling 154 acres, netting $465,300.
Auctioneers say there is demand, giving the example of the 500 bidders who stood in the pouring rain in May to buy 44 condo units at Crystal Tower in Gulf Shores. The absolute auction brought in more than $13 million.
Many people wanted to buy condos when the market was bustling but couldn't afford the million-dollar price tag, according to William Bone, president of National Auction Group. "A lot more people can pay $300,000, though, in today's market," he said.
The auctions will slow down when the inventory gets cleaned up, he said.
In mid-July, there were 2,112 condo units listed for sale in Gulf Shores, Orange Beach and Fort Morgan and 1,105 of those were Gulf-front units, according to the Baldwin County Multiple Listing Service.
In August, the auction frenzy continues. Sheldon Good & Company, one of the largest real estate auction firms in the country, plans to sell 35 units at San Carlos in Gulf Shores, with 15 of those offered at absolute auction on Aug. 17.
Vision Bank has hired National Auction Group to sell a variety of its properties in Baldwin County on Aug. 9 at a mega event in the ballroom of Perdido Resort in Orange Beach.
Vision's auction includes, among other properties, beachfront and bayfront lots, five condo units at Sanibel in Gulf Shores, 42 acres in Fairhope, two homes in Craft Farms, a Grand Caribbean condo unit in Orange Beach, a horse farm in Magnolia Springs and 103 lots in Crimson Ridge subdivision on Baldwin County 8 in Gulf Shores.
"It's the sign of the times," said Joey Ginn, chief executive officer of Vision Bank, based in Panama City, Fla. "I don't think there is a bank out there today that's been in business for the past five years that does not have some foreclosure properties."
Not all of the properties are foreclosures, he said, adding that some customers who had properties for sale added there's to the mix.
"We're not unique to using an auction company," Ginn said. "Other banks have done it, maybe not in that market, but here in Florida."
In a normal market, Realtors don't like auctions, according to Larry Powell of Meyer Real Estate on Fort Morgan.
But, "in the market we have now, it creates and generates activity," he said.
"And a good auction sets some values that we as a market can put our teeth into" when the last couple of years have yielded few comparable sales to use in pricing.
A true, absolute auction will set the market prices, according to Chuck Norwood of REMAX of Gulf Shores.
But he said that while an auction is quick, and there have been some successes, sellers who price their properties correctly could just as well use a Realtor.
"I've said all along, people with realistic prices are moving property," Norwood said.
Paula Ingle of Coastal Auction Co. in Gulf Shores said that her company will tell a seller upfront if the asking price is unrealistic.
"You have to be truthful," she said. "Otherwise, everybody has wasted their time and money."
Sheldon Good rejects a lot of business because of the seller's pricing, according to Michael Fine, an executive vice president at the firm's Chicago office.
"We learn what they want and don't believe it's achievable," he said.
The San Carlos auction will be the first Alabama coast auction for Sheldon Good. It won't be at the beachfront site in Gulf Shores, but at the Renaissance Riverview Plaza Hotel in downtown Mobile.
"The idea is to make the location convenient to the bidders," Fine said. "We believe the bidders will come from not only Alabama, but a fairly strong number will come from the Georgia, Texas and the Atlanta area." Many could travel on commercial flights to Mobile, and during the summer, it can be difficult to find a place to stay the night at the beach, according to Fine.
Having absolute auctions with no minimum bid price is the key to drawing crowds, especially buyers from out-of-town, auctioneers say.
"People want to know that if they travel a great distance, they can be the highest bidder and get it," Bone said. "They don't want a pre-set price. But that doesn't mean properties sell cheap."
Please let me know if you are looking for info on upcoming auction. Gulf Shores Realtor
It's summertime, and the auctions are hot in Baldwin County and becoming more and more common.
Homeowners, developers and, of course, banks are turning to auction companies to unload property. Some owners aren't desperate, but want to sell what they hold quickly and move to other investments. Others are feeling the economic pinch of paying interest on unsold lots or see foreclosure clouds looming over their excess inventory.
There have been successes: Last week, 50 condo units at Emerald Greens off Alabama 59 in Gulf Shores, adjacent to Craft Farms, sold at absolute auction for $6,393,750, according to National Auction Group. There were 86 registered bidders from nine states, plus Kuwait and Canada.
And some not-so-successful ventures: The owners of 2,000 acres along 7 miles of waterfront on Perdido Bay in Lillian canceled a planned auction when none of the 27 potential bidders were interested in buying big tracts, according to National Auction. Instead, the owners sold four tracts totaling 154 acres, netting $465,300.
Auctioneers say there is demand, giving the example of the 500 bidders who stood in the pouring rain in May to buy 44 condo units at Crystal Tower in Gulf Shores. The absolute auction brought in more than $13 million.
Many people wanted to buy condos when the market was bustling but couldn't afford the million-dollar price tag, according to William Bone, president of National Auction Group. "A lot more people can pay $300,000, though, in today's market," he said.
The auctions will slow down when the inventory gets cleaned up, he said.
In mid-July, there were 2,112 condo units listed for sale in Gulf Shores, Orange Beach and Fort Morgan and 1,105 of those were Gulf-front units, according to the Baldwin County Multiple Listing Service.
In August, the auction frenzy continues. Sheldon Good & Company, one of the largest real estate auction firms in the country, plans to sell 35 units at San Carlos in Gulf Shores, with 15 of those offered at absolute auction on Aug. 17.
Vision Bank has hired National Auction Group to sell a variety of its properties in Baldwin County on Aug. 9 at a mega event in the ballroom of Perdido Resort in Orange Beach.
Vision's auction includes, among other properties, beachfront and bayfront lots, five condo units at Sanibel in Gulf Shores, 42 acres in Fairhope, two homes in Craft Farms, a Grand Caribbean condo unit in Orange Beach, a horse farm in Magnolia Springs and 103 lots in Crimson Ridge subdivision on Baldwin County 8 in Gulf Shores.
"It's the sign of the times," said Joey Ginn, chief executive officer of Vision Bank, based in Panama City, Fla. "I don't think there is a bank out there today that's been in business for the past five years that does not have some foreclosure properties."
Not all of the properties are foreclosures, he said, adding that some customers who had properties for sale added there's to the mix.
"We're not unique to using an auction company," Ginn said. "Other banks have done it, maybe not in that market, but here in Florida."
In a normal market, Realtors don't like auctions, according to Larry Powell of Meyer Real Estate on Fort Morgan.
But, "in the market we have now, it creates and generates activity," he said.
"And a good auction sets some values that we as a market can put our teeth into" when the last couple of years have yielded few comparable sales to use in pricing.
A true, absolute auction will set the market prices, according to Chuck Norwood of REMAX of Gulf Shores.
But he said that while an auction is quick, and there have been some successes, sellers who price their properties correctly could just as well use a Realtor.
"I've said all along, people with realistic prices are moving property," Norwood said.
Paula Ingle of Coastal Auction Co. in Gulf Shores said that her company will tell a seller upfront if the asking price is unrealistic.
"You have to be truthful," she said. "Otherwise, everybody has wasted their time and money."
Sheldon Good rejects a lot of business because of the seller's pricing, according to Michael Fine, an executive vice president at the firm's Chicago office.
"We learn what they want and don't believe it's achievable," he said.
The San Carlos auction will be the first Alabama coast auction for Sheldon Good. It won't be at the beachfront site in Gulf Shores, but at the Renaissance Riverview Plaza Hotel in downtown Mobile.
"The idea is to make the location convenient to the bidders," Fine said. "We believe the bidders will come from not only Alabama, but a fairly strong number will come from the Georgia, Texas and the Atlanta area." Many could travel on commercial flights to Mobile, and during the summer, it can be difficult to find a place to stay the night at the beach, according to Fine.
Having absolute auctions with no minimum bid price is the key to drawing crowds, especially buyers from out-of-town, auctioneers say.
"People want to know that if they travel a great distance, they can be the highest bidder and get it," Bone said. "They don't want a pre-set price. But that doesn't mean properties sell cheap."
Please let me know if you are looking for info on upcoming auction. Gulf Shores Realtor
Wednesday, August 6, 2008
ORANGE BEACH -- City officials are negotiating with Turquoise Place developer Larry Wireman to restructure the package of park land and capital improvements that will be given to the public when his pair of condo towers is complete.
Wireman received approval to build four Gulf-front towers, but amid the condo market downturn has decided to only construct two. As such, the public benefits package he offered as part of his full plans will be reduced.
At the time Wireman's designs were approved, municipal law required developers to provide public benefits -- things like sidewalks, beach access, parks, street lights -- to justify projects that strayed from city zoning ordinances. The towers of Turquoise Place far exceeded what was then Orange Beach's building height limit.
For the first two towers Wireman agreed to give the city a 90-foot-wide public beach access with rest rooms, dune walkovers and parking spaces along with about 6 acres on Cotton Bayou on which he would build bathrooms and a fishing pier. He also pledged up to $300,000 toward a fire station on the Cotton Bayou property, which sits across Alabama 182 from his high-rises.
With the second set of towers he agreed to give the city another 10 acres on Cotton Bayou. Because those condos won't be built, however, that deal is no longer valid, city officials said.
The tract the city is getting is irregularly shaped -- wide near the water with a narrow piece reaching up to Alabama 182 -- and dotted with wetlands. So city officials, now eyeing the property more for the fire station and less as a park, have asked Wireman if they could flip the parcel around so that there is more land on the street, City Administrator Jeff Moon said.
"From a practical standpoint I think the chief will tell you it makes more sense for it to be up by the road but we would like access to the water by means of an easement or a strip of land," Moon said Tuesday during a City Council work session.
Fire Chief Forney Howard said that Wireman's architect Forrest Daniell is drawing up plans for the fire station, aiming to make it match the glass-wrapped condo towers. The facility may wind up being two stories, with break-away walls on the ground level, so that in the event of a hurricane the station could quickly be put back into service, Howard said.
In addition to giving firefighters quick access to the Gulf-front, the station would be home to the department's fire boat, which could quickly get into the water via Cotton Bayou, Howard said.
The problem is that with construction costs rising rapidly over the past four years, $300,000 is no longer enough to build a fire station, city officials said. Construction of Fire Station No. 2, which was completed in May 2006, cost $672,000, with city employees doing most of the work, Howard said.
Simply by being nearer to the beach, the cost of the proposed station would be expected to exceed that, Moon said.
So city officials have suggested that Wireman drop his plans to build the fishing pier, parking spots and bathrooms on both sides of the road and instead put that money toward the fire house. Wireman said he is open to doing so.
"It only makes sense to do what's been suggested," Mayor Pete Blalock said.
For information on Turquoise Place contact your Gulf Shores Realtor
Wireman received approval to build four Gulf-front towers, but amid the condo market downturn has decided to only construct two. As such, the public benefits package he offered as part of his full plans will be reduced.
At the time Wireman's designs were approved, municipal law required developers to provide public benefits -- things like sidewalks, beach access, parks, street lights -- to justify projects that strayed from city zoning ordinances. The towers of Turquoise Place far exceeded what was then Orange Beach's building height limit.
For the first two towers Wireman agreed to give the city a 90-foot-wide public beach access with rest rooms, dune walkovers and parking spaces along with about 6 acres on Cotton Bayou on which he would build bathrooms and a fishing pier. He also pledged up to $300,000 toward a fire station on the Cotton Bayou property, which sits across Alabama 182 from his high-rises.
With the second set of towers he agreed to give the city another 10 acres on Cotton Bayou. Because those condos won't be built, however, that deal is no longer valid, city officials said.
The tract the city is getting is irregularly shaped -- wide near the water with a narrow piece reaching up to Alabama 182 -- and dotted with wetlands. So city officials, now eyeing the property more for the fire station and less as a park, have asked Wireman if they could flip the parcel around so that there is more land on the street, City Administrator Jeff Moon said.
"From a practical standpoint I think the chief will tell you it makes more sense for it to be up by the road but we would like access to the water by means of an easement or a strip of land," Moon said Tuesday during a City Council work session.
Fire Chief Forney Howard said that Wireman's architect Forrest Daniell is drawing up plans for the fire station, aiming to make it match the glass-wrapped condo towers. The facility may wind up being two stories, with break-away walls on the ground level, so that in the event of a hurricane the station could quickly be put back into service, Howard said.
In addition to giving firefighters quick access to the Gulf-front, the station would be home to the department's fire boat, which could quickly get into the water via Cotton Bayou, Howard said.
The problem is that with construction costs rising rapidly over the past four years, $300,000 is no longer enough to build a fire station, city officials said. Construction of Fire Station No. 2, which was completed in May 2006, cost $672,000, with city employees doing most of the work, Howard said.
Simply by being nearer to the beach, the cost of the proposed station would be expected to exceed that, Moon said.
So city officials have suggested that Wireman drop his plans to build the fishing pier, parking spots and bathrooms on both sides of the road and instead put that money toward the fire house. Wireman said he is open to doing so.
"It only makes sense to do what's been suggested," Mayor Pete Blalock said.
For information on Turquoise Place contact your Gulf Shores Realtor
Tuesday, August 5, 2008
Gulf Shores beaches
While some Gulf Shores visitors said rising gas prices hadn't affected their holiday plans, others said they had chosen a more local getaway to save money.
"We figured with rising gas prices, this weekend we'd stick closer to home and stay in a condo in Orange Beach," said Mason Austin of Fairhope. "What would you call this?" he asked his wife, Mary.
"A staycation," she answered.
Brent McSpadden said driving from Atlanta cost about $200, but the trip was still a practical outing. "If we flew, the airfare was going to be close to $1,000," he said. "I really didn't mind the gas prices. It kept some of the people off the road and the trip to Gulf Shores was not too bad."
He said the family was also able to economize by staying with relatives. "We've got people in Mobile, so we could stay there and come over here, so that worked out," he said.
McSpadden and his wife, Amy, watched as their daughter, Anna Kate, dug in the sand with a small plastic shovel.
"She's 18 months old," he said. "This is her first time at the beach. She loves it, so I'm sure we'll be back."
At The Hangout, business was good Sunday as lunch crowds wandered in from the nearby beach, said Summer Sanders, restaurant manager.
"Business has been great," she said. "Of course, we could have done without the rain Friday night, but so could everyone, but Saturday was good and today's been good. People are finding out that we're here."
She said the economy has had an effect on the weekend turnout.
"I think gas prices have made an impact this weekend," Sanders said. "I grew up here and for a Memorial Day weekend, it's not as big as some I remember, but the crowds are still good."
At the Alabama Gulf State Park, beaches and accommodations were filled, Hugh Branyon, park director, said Sunday.
"The crowds are good," he said. "The campgrounds all are full, all 496 sites and the beaches have been busy."
On Dauphin Island, crowds on the beaches had picked up Sunday, said William Harper, a volunteer with the Dauphin Island Chamber of Commerce.
"The crowds yesterday were a little lighter than would be expected, but there are more people today," he said Sunday. "I'd say it's moderate to heavy down at the beach and there are a lot of people on the island right now."
Harper said both motels and condos had good bookings for the weekend and upcoming week.
He said gas prices could help local tourism if people in Mobile and to the west looked for beach locations closer than Baldwin County or Florida.
"My gut feeling is we're going to be a little busier this year as people from Harrison County, Jackson County, Miss., look for somewhere closer than Gulf Shores or Pensacola Beach," he said. "People in Mobile, too, might not want to drive as far."
Dauphin Island's holiday weekend was marred by the death of Eric Stegall, 12 of New Orleans. He was seen swimming off Dauphin Island Saturday evening. His body was discovered in the water Sunday morning after an all-night search by Dauphin Island and Mobile County authorities.
BEACH REPORT
Water temperature: 75 degrees.
Wave conditions: Waves along the Gulf Coast were choppy Sunday. The National Weather Service predicts a moderate risk of rip currents along Alabama and the western Florida Panhandle beaches today.
Water conditions: There have been no reports of stinging jellyfish infestations or higher-than-normal shark counts, according to state officials.
UV report: Experts predict an extreme ultraviolet index, so wear a hat and don't skimp on the sunscreen. For any questions you may have concerning the Gulf Shores are, please contact Aaron Pugh
"We figured with rising gas prices, this weekend we'd stick closer to home and stay in a condo in Orange Beach," said Mason Austin of Fairhope. "What would you call this?" he asked his wife, Mary.
"A staycation," she answered.
Brent McSpadden said driving from Atlanta cost about $200, but the trip was still a practical outing. "If we flew, the airfare was going to be close to $1,000," he said. "I really didn't mind the gas prices. It kept some of the people off the road and the trip to Gulf Shores was not too bad."
He said the family was also able to economize by staying with relatives. "We've got people in Mobile, so we could stay there and come over here, so that worked out," he said.
McSpadden and his wife, Amy, watched as their daughter, Anna Kate, dug in the sand with a small plastic shovel.
"She's 18 months old," he said. "This is her first time at the beach. She loves it, so I'm sure we'll be back."
At The Hangout, business was good Sunday as lunch crowds wandered in from the nearby beach, said Summer Sanders, restaurant manager.
"Business has been great," she said. "Of course, we could have done without the rain Friday night, but so could everyone, but Saturday was good and today's been good. People are finding out that we're here."
She said the economy has had an effect on the weekend turnout.
"I think gas prices have made an impact this weekend," Sanders said. "I grew up here and for a Memorial Day weekend, it's not as big as some I remember, but the crowds are still good."
At the Alabama Gulf State Park, beaches and accommodations were filled, Hugh Branyon, park director, said Sunday.
"The crowds are good," he said. "The campgrounds all are full, all 496 sites and the beaches have been busy."
On Dauphin Island, crowds on the beaches had picked up Sunday, said William Harper, a volunteer with the Dauphin Island Chamber of Commerce.
"The crowds yesterday were a little lighter than would be expected, but there are more people today," he said Sunday. "I'd say it's moderate to heavy down at the beach and there are a lot of people on the island right now."
Harper said both motels and condos had good bookings for the weekend and upcoming week.
He said gas prices could help local tourism if people in Mobile and to the west looked for beach locations closer than Baldwin County or Florida.
"My gut feeling is we're going to be a little busier this year as people from Harrison County, Jackson County, Miss., look for somewhere closer than Gulf Shores or Pensacola Beach," he said. "People in Mobile, too, might not want to drive as far."
Dauphin Island's holiday weekend was marred by the death of Eric Stegall, 12 of New Orleans. He was seen swimming off Dauphin Island Saturday evening. His body was discovered in the water Sunday morning after an all-night search by Dauphin Island and Mobile County authorities.
BEACH REPORT
Water temperature: 75 degrees.
Wave conditions: Waves along the Gulf Coast were choppy Sunday. The National Weather Service predicts a moderate risk of rip currents along Alabama and the western Florida Panhandle beaches today.
Water conditions: There have been no reports of stinging jellyfish infestations or higher-than-normal shark counts, according to state officials.
UV report: Experts predict an extreme ultraviolet index, so wear a hat and don't skimp on the sunscreen. For any questions you may have concerning the Gulf Shores are, please contact Aaron Pugh
Thursday, July 24, 2008
The locals will compete with a national firm for vacation rentals after the arrival of ResortQuest on the Alabama Gulf Coast.
"We're in a growth mode and setting it up for a strong future here," said Lino Maldonado, vice president of Northwest Florida operations, which is based in Fort Walton Beach, Fla. "We knew we needed to be in Gulf Shores. The product mix, all the entertainment venues, and the family atmosphere, it's a perfect niche."
ResortQuest is one of the largest firms managing and marketing resort condominium and home rentals in the United States. Its local rental management office is in the former Ono Professional Partners real estate building at 3145 Gulf Shores Parkway in Gulf Shores. Ono Professionals is now called ResortQuest Real Estate, and its 30 sales agents occupy the second floor of the building, according to broker Jeff McLaurin.
Much of the rental invento ry at the Gulf has been managed by two large companies, Meyer Real Estate and Kaiser Realty, and a handful of mom-and-pop operations. But there's plenty of business to go around, according to the resort managers. There are 15,263 condo units and hotel rooms available for rentals, according to the Alabama Gulf Coast Convention & Visitors Bureau.
"Bring it on," said Sarah Kuzma, a spokesperson for Meyer in Gulf Shores. "We're ready and can compete with anyone. If they bring some national attention to our area, that's positive." Meyer manages more than 2,000 properties in Alabama and Florida.
"The inventory is growing and there's certainly room for good, quality companies to promote the area," said Leonard Kaiser, president of Kaiser Realty in Gulf Shores, which manages more than 700 waterfront houses and condo units. "We welcome them back to the area."
ResortQuest bought the management company at Gulf Shores Plantation Resort on Fort Morgan in 1998, and managed only units there, according to broker Pedro Mandoki, who sold them the management firm, but stayed on to run it. When ResortQuest's new owner decided to leave the Plantation in 2005, Mandoki said he bought back the management business.
"They see the opportunity here with the new inventory coming on line and they are trying to grow their company," Mandoki said. "They will bring more exposure to the area."
Since entering the market at the end of May, ResortQuest has signed up about 60 rental units and expects to manage several hundred by next summer, according to Ryan Christopher, senior operations manager.
"We quickly pulled in clients who knew about the company," he said.
"We're in a growth mode and setting it up for a strong future here," said Lino Maldonado, vice president of Northwest Florida operations, which is based in Fort Walton Beach, Fla. "We knew we needed to be in Gulf Shores. The product mix, all the entertainment venues, and the family atmosphere, it's a perfect niche."
ResortQuest is one of the largest firms managing and marketing resort condominium and home rentals in the United States. Its local rental management office is in the former Ono Professional Partners real estate building at 3145 Gulf Shores Parkway in Gulf Shores. Ono Professionals is now called ResortQuest Real Estate, and its 30 sales agents occupy the second floor of the building, according to broker Jeff McLaurin.
Much of the rental invento ry at the Gulf has been managed by two large companies, Meyer Real Estate and Kaiser Realty, and a handful of mom-and-pop operations. But there's plenty of business to go around, according to the resort managers. There are 15,263 condo units and hotel rooms available for rentals, according to the Alabama Gulf Coast Convention & Visitors Bureau.
"Bring it on," said Sarah Kuzma, a spokesperson for Meyer in Gulf Shores. "We're ready and can compete with anyone. If they bring some national attention to our area, that's positive." Meyer manages more than 2,000 properties in Alabama and Florida.
"The inventory is growing and there's certainly room for good, quality companies to promote the area," said Leonard Kaiser, president of Kaiser Realty in Gulf Shores, which manages more than 700 waterfront houses and condo units. "We welcome them back to the area."
ResortQuest bought the management company at Gulf Shores Plantation Resort on Fort Morgan in 1998, and managed only units there, according to broker Pedro Mandoki, who sold them the management firm, but stayed on to run it. When ResortQuest's new owner decided to leave the Plantation in 2005, Mandoki said he bought back the management business.
"They see the opportunity here with the new inventory coming on line and they are trying to grow their company," Mandoki said. "They will bring more exposure to the area."
Since entering the market at the end of May, ResortQuest has signed up about 60 rental units and expects to manage several hundred by next summer, according to Ryan Christopher, senior operations manager.
"We quickly pulled in clients who knew about the company," he said.
Five Rivers
Three of Bon Secour Village's five developers have filed for bankruptcy, putting the already imperiled Gulf Shores development at further risk and illustrating how south Baldwin County's burst real estate bubble has hit even the most wealthy investors.
Cullman brothers Eddie and Josh Canaday — along with their business partner Michael Knight and a pair of their companies, Midnight Properties and Midnight Management & Investments — have asked for Chapter 11 bankruptcy protection in northern Alabama's federal court. This kind of protection is generally used by debtors to stave off lawsuits from creditors while they reorganize their finances.
Messages left with the men's Cullman office and their Decatur bankruptcy lawyer, Garland Hall III, were not returned.
The men are saddled with debts, according to the bankruptcy filings, including some related to Bon Secour Village and many that are shared among the three investors. The total amounts to more than $121 million in Knight's case and in excess of $160 million for each of the Canadays.
Midnight Properties — through which the trio owns 31 condominiums in
Alabama and Florida, a farm in Blount County and a $2.8 million home at the AQUA development on Miami Beach's private Allison Island — listed about $30 million in debt. And Midnight Management & Investments, a separate arm of their real estate enterprise, claims more than $104 million in liabilities.
Others file, too
The three are not alone in south Baldwin in seeing their expansive holdings and multimillion-dollar investments turn to huge debt in the deflated market.
Prominent condominium developer and real estate company owner Rick Phillips, for example, filed for Chapter 7 bankruptcy protection last month in federal court in Mobile, claiming more than $124 million in debt. Last August, Joan Teeters, the owner of a Gulf Shores real estate company that ran television commercials touting the riches to be found in the coastal market, filed for Chapter 13 protection with about $3.6 million of debt.
"I've had more bankruptcy notices come across my desk in the last month than I had in the 12 years before," Gulf Shores lawyer Daniel Craven told attendees of a February symposium sponsored by Condo Owner magazine.
Please check out my website for current information
Cullman brothers Eddie and Josh Canaday — along with their business partner Michael Knight and a pair of their companies, Midnight Properties and Midnight Management & Investments — have asked for Chapter 11 bankruptcy protection in northern Alabama's federal court. This kind of protection is generally used by debtors to stave off lawsuits from creditors while they reorganize their finances.
Messages left with the men's Cullman office and their Decatur bankruptcy lawyer, Garland Hall III, were not returned.
The men are saddled with debts, according to the bankruptcy filings, including some related to Bon Secour Village and many that are shared among the three investors. The total amounts to more than $121 million in Knight's case and in excess of $160 million for each of the Canadays.
Midnight Properties — through which the trio owns 31 condominiums in
Alabama and Florida, a farm in Blount County and a $2.8 million home at the AQUA development on Miami Beach's private Allison Island — listed about $30 million in debt. And Midnight Management & Investments, a separate arm of their real estate enterprise, claims more than $104 million in liabilities.
Others file, too
The three are not alone in south Baldwin in seeing their expansive holdings and multimillion-dollar investments turn to huge debt in the deflated market.
Prominent condominium developer and real estate company owner Rick Phillips, for example, filed for Chapter 7 bankruptcy protection last month in federal court in Mobile, claiming more than $124 million in debt. Last August, Joan Teeters, the owner of a Gulf Shores real estate company that ran television commercials touting the riches to be found in the coastal market, filed for Chapter 13 protection with about $3.6 million of debt.
"I've had more bankruptcy notices come across my desk in the last month than I had in the 12 years before," Gulf Shores lawyer Daniel Craven told attendees of a February symposium sponsored by Condo Owner magazine.
Please check out my website for current information
Monday, July 14, 2008
Gulf Shores Real Estate Auctions
GULF SHORES, Ala. A driving rainstorm didn't hinder bidders from buying 44 condominium units for more than $13 million at an absolute auction that attracted more than 1,000 people to the Crystal Tower condo complex Saturday afternoon.
Amid wall-to-wall umbrellas, more than 500 registered bidders from 20 states came to look for a deal or at least catch a glimpse of the condo-buying fever evident on West Beach in Baldwin County.
The lowest unit sale prices were $275,000 and the highest purchase price was $350,000, which included a 10 percent buyer's premium added to the bid amount.
"My brothers and I had not intended to go that low," said Collier Merrill, the developer of the 170-unit Crystal Tower on West Beach Boulevard. "But we wanted to move some product and in an hour we sold 13 million dollars' worth."
The Merrill family planned to sell 30 units at absolute auction or with no minimum bid, and instead sold 44. They held about 20 for rentals, Merrill said.
"Considering the weather, we had a lot of people come out," Merrill said. "There was a lot of buzz about it and it's a nice product with good amenities."
The developer held back about 70 of the 170 units when presales were released in 2004. At that time, the units were selling in the high $400s to high $600s, according to agents and the developer.
The 20-story complex is not on the gulf or on Little Lagoon, but does have water views and an enclosed, air-conditioned skywalk across the road to a private beach club and swimming pool.
Vernon Jackson of Daphne had hoped to buy a unit for $225,000, but was happy to get one for $250,000. While he plans to live there full time, he admitted he didn't know how he was going to explain his sudden purchase to his girlfriend. It took him less than 10 minutes to walk away an owner.
The auction started about an hour late, thanks in part to the heavy winds, lightning and battering rain. But it was mostly due to the long line of folks waiting to register to bid. The bidders were required to bring $10,000 in certified funds for each condo they bid on, according to William Bone, president of the National Auction Group. The auction staff ran out of forms and auction paddles and scurried to make some temporary forms. Four condo units were sold before the auction started, Bone said. The bidders came from as far as Reno, Nevada; Texas, Chicago, New Orleans and even a buyer in Georgia who made his successful bid via the Internet.
About a dozen disgruntled, would-be bidders demanded and received their checks back after the auction start was delayed.
"They must not be serious bidders," Bone commented. Pointing to the crowd, he added, "This was a huge win for every developer on the Gulf Coast. It demonstrates a pent-up demand." While many Realtors and their clients waited on edge for the prices to drop to their satisfaction, there were lots of individual investors who took the leap and bid.
One such buyer was Jim Gauntt, who drove to Gulf Shores from Atlanta and went back home a first-time owner of a two-bedroom condo unit for $270,000. He didn't care that it wasn't on the beach. "It's got nice amenities," he said.
Tuscaloosa physician A.B. Reddy bought an interior unit for $250,000 and plans to rent it out, he said.
All of the units were brand-new, faced the gulf and had balconies, but the sought-after units were the corner units on floors seven and up, which sported the best views of the Gulf of Mexico.
Some units were furnished. The complex amenities include an indoor pool, two outdoor pools, two spas, a sauna, fitness center, game room and media room. The monthly condo association dues are about $500 a month, Realtors said.
You can find more info here
Amid wall-to-wall umbrellas, more than 500 registered bidders from 20 states came to look for a deal or at least catch a glimpse of the condo-buying fever evident on West Beach in Baldwin County.
The lowest unit sale prices were $275,000 and the highest purchase price was $350,000, which included a 10 percent buyer's premium added to the bid amount.
"My brothers and I had not intended to go that low," said Collier Merrill, the developer of the 170-unit Crystal Tower on West Beach Boulevard. "But we wanted to move some product and in an hour we sold 13 million dollars' worth."
The Merrill family planned to sell 30 units at absolute auction or with no minimum bid, and instead sold 44. They held about 20 for rentals, Merrill said.
"Considering the weather, we had a lot of people come out," Merrill said. "There was a lot of buzz about it and it's a nice product with good amenities."
The developer held back about 70 of the 170 units when presales were released in 2004. At that time, the units were selling in the high $400s to high $600s, according to agents and the developer.
The 20-story complex is not on the gulf or on Little Lagoon, but does have water views and an enclosed, air-conditioned skywalk across the road to a private beach club and swimming pool.
Vernon Jackson of Daphne had hoped to buy a unit for $225,000, but was happy to get one for $250,000. While he plans to live there full time, he admitted he didn't know how he was going to explain his sudden purchase to his girlfriend. It took him less than 10 minutes to walk away an owner.
The auction started about an hour late, thanks in part to the heavy winds, lightning and battering rain. But it was mostly due to the long line of folks waiting to register to bid. The bidders were required to bring $10,000 in certified funds for each condo they bid on, according to William Bone, president of the National Auction Group. The auction staff ran out of forms and auction paddles and scurried to make some temporary forms. Four condo units were sold before the auction started, Bone said. The bidders came from as far as Reno, Nevada; Texas, Chicago, New Orleans and even a buyer in Georgia who made his successful bid via the Internet.
About a dozen disgruntled, would-be bidders demanded and received their checks back after the auction start was delayed.
"They must not be serious bidders," Bone commented. Pointing to the crowd, he added, "This was a huge win for every developer on the Gulf Coast. It demonstrates a pent-up demand." While many Realtors and their clients waited on edge for the prices to drop to their satisfaction, there were lots of individual investors who took the leap and bid.
One such buyer was Jim Gauntt, who drove to Gulf Shores from Atlanta and went back home a first-time owner of a two-bedroom condo unit for $270,000. He didn't care that it wasn't on the beach. "It's got nice amenities," he said.
Tuscaloosa physician A.B. Reddy bought an interior unit for $250,000 and plans to rent it out, he said.
All of the units were brand-new, faced the gulf and had balconies, but the sought-after units were the corner units on floors seven and up, which sported the best views of the Gulf of Mexico.
Some units were furnished. The complex amenities include an indoor pool, two outdoor pools, two spas, a sauna, fitness center, game room and media room. The monthly condo association dues are about $500 a month, Realtors said.
You can find more info here
Gulf Shores Real Estate Auctions
GULF SHORES, Ala. A driving rainstorm didn't stop bidders from buying 44 condominium units for more than $13 million at an absolute auction that attracted more than 1,000 people to the Crystal Tower condo complex Saturday afternoon.
Amid wall-to-wall umbrellas, more than 500 registered bidders from 20 states came to look for a deal or at least catch a glimpse of the condo-buying fever evident on West Beach in Baldwin County.
The lowest unit sale prices were $275,000 and the highest purchase price was $350,000, which included the 10 percent buyer's premium added to the bid amount, according to the National Auction Co. based in Gadsden.
"My brothers and I had not intended to go that low," said Collier Merrill, the developer of the 170-unit Crystal Tower on West Beach Boulevard. "But we wanted to move some product and in an hour we sold 13 million dollars' worth."
The Merrill family had planned to sell 30 units at absolute auction or with no minimum bid, and instead sold 44. They kept about 20 for rentals, Merrill said.
"Considering the weather, we had a lot of people come out," Merrill said. "There was a lot of buzz about it and it's a nice product with good amenities."
The developer held back about 70 of the 170 units when presales were released in 2004. At that time, the units were selling in the high $400s to high $600s, according to agents and the developer.
The 20-story complex is not on the gulf-front or on Little Lagoon, but does have water views and an enclosed, air-conditioned skywalk across the road to a private beach club and swimming pool.
Vernon Jackson of Daphne had hoped to buy a unit for $225,000, but was happy to get one for $250,000. While he plans to live there full time, he admitted he didn't know how he was going to explain his sudden purchase to his girlfriend. It took him less than 10 minutes to walk away an owner.
The auction started an hour late, at about noon, thanks in part to the heavy winds, lightning and battering rain. But it was mostly due to the long line of folks waiting to register to bid. The bidders were required to bring $10,000 in certified funds for each condo they bid on, according to William Bone, president of the National Auction Group. The auction staff ran out of forms and auction paddles and scurried to make some temporary forms. Four condo units were sold before the auction started, Bone said. The bidders came from as far as Reno, Nevada; Texas, Chicago, New Orleans and even a buyer in Georgia who made his successful bid via the Internet.
About a dozen disgruntled, would-be bidders demanded and received their checks back after the auction start was delayed.
"They must not be serious bidders," Bone commented. Pointing to the crowd, he added, "This was a huge win for every developer on the Gulf Coast. It demonstrates a pent-up demand." While many Realtors and their clients waited on edge for the prices to drop to their satisfaction, there were lots of individual investors who took the leap and bid.
One such buyer was Jim Gauntt, who drove to Gulf Shores from Atlanta and went back home a first-time owner of a two-bedroom condo unit for $270,000. He didn't care that it wasn't on the beach. "It's got nice amenities," he said.
Tuscaloosa physician A.B. Reddy bought an interior unit for $250,000 and plans to rent it out, he said.
The sales prices helped to establish a bottom to the unit property values, according to Realtors.
All of the units were brand-new, faced the gulf and had balconies, but the sought-after units were the corner units on floors seven and up, which sported the best views of the Gulf of Mexico.
Some units were furnished. The complex amenities include an indoor pool, two outdoor pools, two spas, a sauna, fitness center, game room and media room. The monthly condo association dues are about $500 a month, Realtors said.
Friday, July 11, 2008
Beach House Bargains
Thanks to the real estate crash, these days you might just be able to afford that condo by the sea. Here's where to shop.
(Fortune Magazine) -- Three years ago, while writing for Fortune's sister publication Money, I embarked on what seemed like an oxymoronic (or maybe just moronic) quest: to find affordable beach houses at a time of real estate insanity. Beachfront prices were soaring, which made my mission - finding vacation getaways right on the ocean for less than $500,000 - seem like a long shot.
In the end, I did find a few beach locales where bargains still existed, such as North Padre Island in Texas and Prince Edward Island in Canada. For the most part, though, my travels confirmed what the experts had warned me going in: The beach-house retirement dream is out of reach for many upper-middle-class Americans. "We get calls all the time from people who say that all they want is a little house on the beach - nothing too fancy," one real estate agent told me. "It's heartbreaking, but the problem is that even those homes come with a fancy price tag."
Three years and one real estate crash later, the beach-house market has changed. Prices are coming down, especially in America's vacation-home capital of Florida. But so far the correction hasn't been nearly as dramatic as prospective buyers might hope.
So where are the beach bargains these days? I posed this question to two of the most active vacation-home buyers in North America - Cathy Ross, executive vice president for real estate with Exclusive Resorts, and Richard Keith, CEO of Private Escapes.
Exclusive Resorts and Private Escapes are leading "destination clubs," which are essentially luxury time-shares for the well-to-do. (Members pay a six-figure membership fee, plus annual dues, and are entitled to use the clubs' stable of luxury vacation homes for several weeks a year.) Ross says she sees "great value" right now in Hawaii, where prices have fallen some 10%. Keith is finding deals in the Caribbean archipelago of Turks and Caicos - particularly the Grace Beach section, where developers overbuilt during the boom.
Two markets where both Ross and Keith see buying opportunities galore are along the Florida/Alabama coast. The best bargains are in condominiums. Aaron Pugh, a real estate agent in the Panhandle resort town of Gulf Shores, says Panhandle prices have fallen 25% to 30% since 2005. A two-bedroom beachfront condo that might have sold for $600,000 in 2005 can now be had for $425,000, he says.
But before booking a flight to the Sunshine State, consider property tax is soaring. If you move to the Alabama side of the invisible line, they fall four-fold. Another peice of good news involves insurance premiums. Most all of the rates have declined after a couple of hurricane-safe years and should continue to do just that. You can find info on Gulf Shores real estate pre construction sales by clicking here
(Fortune Magazine) -- Three years ago, while writing for Fortune's sister publication Money, I embarked on what seemed like an oxymoronic (or maybe just moronic) quest: to find affordable beach houses at a time of real estate insanity. Beachfront prices were soaring, which made my mission - finding vacation getaways right on the ocean for less than $500,000 - seem like a long shot.
In the end, I did find a few beach locales where bargains still existed, such as North Padre Island in Texas and Prince Edward Island in Canada. For the most part, though, my travels confirmed what the experts had warned me going in: The beach-house retirement dream is out of reach for many upper-middle-class Americans. "We get calls all the time from people who say that all they want is a little house on the beach - nothing too fancy," one real estate agent told me. "It's heartbreaking, but the problem is that even those homes come with a fancy price tag."
Three years and one real estate crash later, the beach-house market has changed. Prices are coming down, especially in America's vacation-home capital of Florida. But so far the correction hasn't been nearly as dramatic as prospective buyers might hope.
So where are the beach bargains these days? I posed this question to two of the most active vacation-home buyers in North America - Cathy Ross, executive vice president for real estate with Exclusive Resorts, and Richard Keith, CEO of Private Escapes.
Exclusive Resorts and Private Escapes are leading "destination clubs," which are essentially luxury time-shares for the well-to-do. (Members pay a six-figure membership fee, plus annual dues, and are entitled to use the clubs' stable of luxury vacation homes for several weeks a year.) Ross says she sees "great value" right now in Hawaii, where prices have fallen some 10%. Keith is finding deals in the Caribbean archipelago of Turks and Caicos - particularly the Grace Beach section, where developers overbuilt during the boom.
Two markets where both Ross and Keith see buying opportunities galore are along the Florida/Alabama coast. The best bargains are in condominiums. Aaron Pugh, a real estate agent in the Panhandle resort town of Gulf Shores, says Panhandle prices have fallen 25% to 30% since 2005. A two-bedroom beachfront condo that might have sold for $600,000 in 2005 can now be had for $425,000, he says.
But before booking a flight to the Sunshine State, consider property tax is soaring. If you move to the Alabama side of the invisible line, they fall four-fold. Another peice of good news involves insurance premiums. Most all of the rates have declined after a couple of hurricane-safe years and should continue to do just that. You can find info on Gulf Shores real estate pre construction sales by clicking here
Wednesday, July 9, 2008
The Birmingham News
When it comes to beach property, “luxury” has taken on a whole new meaning. That's because a demanding public has come to expect a long list of amenities and upgrades in their vacation spots and in their investment properties.
That's just the American way, said Aaron Pugh, a Realtor with Ono Professional Partners in Gulf Shores. What were once luxury amenities are now standard. Gourmet kitchens, solid-surface countertops, fitness facilities – all these things add up to what Pugh calls an "overall appeal."
Along the Gulf Coast, the exponential growth of residential properties means more units – and more competition. According to Condo Owner Magazine, the Alabama Gulf Coast and Florida Panhandle have experienced a 595-percent growth over the past decade. That's more than double the increase in other coastal regions. With 10,000 units in Gulf Shores, Orange Beach and Fort Morgan, is there room for more? "There's always more room," Pugh said.
The need for new products has been in place for several years, and in a way, Hurricane Ivan helped spur the supply. Ivan, Pugh said, was "a necessary evil. It was like a cleansing process," ultimately replacing older and outdated buildings with larger complexes that provided more units and more of what buyers are demanding.
And where there are residences, commercial development follows. Once upon a time the Alabama Gulf Coast was more residential, less commercial. "That gap is slowly closing," Pugh said. "We've had a lot of commercial development come through here."
On the Fort Morgan peninsula, for example, the all-inclusive Beach Club Gulf Shores is a full-scale resort, with a spa, racquet club, fitness center, sauna and steam facilities, several restaurants on site and more. The Cottages at the beach Club are single-family residences that are mini-resorts in themselves, with outdoor kitchens, luxury baths and access to all spa services.
The Colonnades in Gulf Shores offers a library, movie theatre and a zero-depth pool. Coral Reef Resort, in preconstruction in Orange Beach, will feature an indoor heated pool, a theatre, a game-room, a 9,000-square-foot outdoor lagoon pool, an adult heated pool, a yoga room and an owners club, among other amenities.
Clearly, developers hear the demands, and they're answering with a diverse supply of housing opportunities with standard features. As Pugh put it, they have to. "Developers now have to consider there's more product than there was two or three years ago," Pugh said. "Buyers are demanding, and they have the right to be that way."
To reach prospective buyers, developers are not only staying competitive with the product and developing innovative properties, they're also creating financial incentives. For example, at Coral Reef in Orange Beach, where preconstruction is under way, the letter of credit has been reduced from 20 percent to 10 percent. "It's a numbers game," Pugh said, explaining that developers must have strong commitment from buyers before construction begins.
If you're looking for an investment property, Pugh said that now is the time to make the move. Whether the market favors the buyer or the seller changes continuously. With beefed up amenities and innovative blends of commercial and residential, the buyer may have leverage because inventory is strong and diverse. "Now is a good time for anyone looking for property," Pugh said. Visit his website here
That's just the American way, said Aaron Pugh, a Realtor with Ono Professional Partners in Gulf Shores. What were once luxury amenities are now standard. Gourmet kitchens, solid-surface countertops, fitness facilities – all these things add up to what Pugh calls an "overall appeal."
Along the Gulf Coast, the exponential growth of residential properties means more units – and more competition. According to Condo Owner Magazine, the Alabama Gulf Coast and Florida Panhandle have experienced a 595-percent growth over the past decade. That's more than double the increase in other coastal regions. With 10,000 units in Gulf Shores, Orange Beach and Fort Morgan, is there room for more? "There's always more room," Pugh said.
The need for new products has been in place for several years, and in a way, Hurricane Ivan helped spur the supply. Ivan, Pugh said, was "a necessary evil. It was like a cleansing process," ultimately replacing older and outdated buildings with larger complexes that provided more units and more of what buyers are demanding.
And where there are residences, commercial development follows. Once upon a time the Alabama Gulf Coast was more residential, less commercial. "That gap is slowly closing," Pugh said. "We've had a lot of commercial development come through here."
On the Fort Morgan peninsula, for example, the all-inclusive Beach Club Gulf Shores is a full-scale resort, with a spa, racquet club, fitness center, sauna and steam facilities, several restaurants on site and more. The Cottages at the beach Club are single-family residences that are mini-resorts in themselves, with outdoor kitchens, luxury baths and access to all spa services.
The Colonnades in Gulf Shores offers a library, movie theatre and a zero-depth pool. Coral Reef Resort, in preconstruction in Orange Beach, will feature an indoor heated pool, a theatre, a game-room, a 9,000-square-foot outdoor lagoon pool, an adult heated pool, a yoga room and an owners club, among other amenities.
Clearly, developers hear the demands, and they're answering with a diverse supply of housing opportunities with standard features. As Pugh put it, they have to. "Developers now have to consider there's more product than there was two or three years ago," Pugh said. "Buyers are demanding, and they have the right to be that way."
To reach prospective buyers, developers are not only staying competitive with the product and developing innovative properties, they're also creating financial incentives. For example, at Coral Reef in Orange Beach, where preconstruction is under way, the letter of credit has been reduced from 20 percent to 10 percent. "It's a numbers game," Pugh said, explaining that developers must have strong commitment from buyers before construction begins.
If you're looking for an investment property, Pugh said that now is the time to make the move. Whether the market favors the buyer or the seller changes continuously. With beefed up amenities and innovative blends of commercial and residential, the buyer may have leverage because inventory is strong and diverse. "Now is a good time for anyone looking for property," Pugh said. Visit his website here
Monday, July 7, 2008
Gulf Shores is found!
USA Today Names Gulf Shores, AL the #5 Best Hidden - Affordable Beach Destination
When most Americans think of Alabama, sugar-sand beaches and palm trees aren't the first things that come to mind. Many forget that Alabama's heel nudges onto the Gulf of Mexico, its coastline a natural extension of the Florida Panhandle. In fact, this region, Gulf Shores, has 32 miles of enviable waterfront real estate. Once again, the ignorance of others is a boon to the enlightened traveler."Gulf Shores is a bit of Florida mixed with southern charm and hospitality," says writer Andrew Der, who visited the area in 2005. "It rivals any Florida destination I've seen, but without the expense or the crowds."The area has tried to make itself into a laid-back beach destination for families and outdoor enthusiasts, without the flash of theme parks, swanky resorts, and college spring break action. Most visitors come to spend a week relaxing on the beach with occasional forays out to visit the attractions. Nature lovers can explore Gulf Shores' protected wilderness areas including the Bon Secour National Wildlife Refuge and Gulf State Park. Those interested in learning about Alabama history can check out Fort Morgan State Historic Site, a Civil War era fort. Playing golf at one of Gulf Shores' championship golf courses and fishing are also popular pursuits.
Going out to sample some of the local cuisine, fresh seafood with a southern flair, is a must. "Gulf Shores is known for some of the best seafood in the country—you should not eat anything else while there," says Der. Try the highly acclaimed Gulf Shores Steamer, where a steamed platter of shrimp, crab legs, oysters, and mussels costs $35 for two people. Or, try a shrimp, oyster, or soft-shelled crab po' boy from King Neptune's Seafood Restaurant for around $10.
For further info on Gulf Shores and it's attractions, check out www.condoinvestment.com
When most Americans think of Alabama, sugar-sand beaches and palm trees aren't the first things that come to mind. Many forget that Alabama's heel nudges onto the Gulf of Mexico, its coastline a natural extension of the Florida Panhandle. In fact, this region, Gulf Shores, has 32 miles of enviable waterfront real estate. Once again, the ignorance of others is a boon to the enlightened traveler."Gulf Shores is a bit of Florida mixed with southern charm and hospitality," says writer Andrew Der, who visited the area in 2005. "It rivals any Florida destination I've seen, but without the expense or the crowds."The area has tried to make itself into a laid-back beach destination for families and outdoor enthusiasts, without the flash of theme parks, swanky resorts, and college spring break action. Most visitors come to spend a week relaxing on the beach with occasional forays out to visit the attractions. Nature lovers can explore Gulf Shores' protected wilderness areas including the Bon Secour National Wildlife Refuge and Gulf State Park. Those interested in learning about Alabama history can check out Fort Morgan State Historic Site, a Civil War era fort. Playing golf at one of Gulf Shores' championship golf courses and fishing are also popular pursuits.
Going out to sample some of the local cuisine, fresh seafood with a southern flair, is a must. "Gulf Shores is known for some of the best seafood in the country—you should not eat anything else while there," says Der. Try the highly acclaimed Gulf Shores Steamer, where a steamed platter of shrimp, crab legs, oysters, and mussels costs $35 for two people. Or, try a shrimp, oyster, or soft-shelled crab po' boy from King Neptune's Seafood Restaurant for around $10.
For further info on Gulf Shores and it's attractions, check out www.condoinvestment.com
Sunday, July 6, 2008
Turquoise Place condos in Orange Beach
Turquoise Place condos in Orange Beach has the first of it's massive twin towers opening in Orange Beach
Sunday, June 29, 2008
By RYAN DEZEMBER
Staff Reporter
ORANGE BEACH -- Three years in the making, the first of the Turquoise Place's twin towers has opened, and buyers of the million-dollar-plus Gulf-front condominium units last week started moving in to what is now Alabama's tallest residential building.
"It's superior quality," said Rita Congemi of Covington, La., who bought a 13th-floor unit with her husband, Dominic. "I think it's probably the most beautiful building out here."
So far, about six condo sales have closed, with most units scheduled to be turned over to buyers next month, said Judy Ramey, broker for Caribe Realty, which sold the condo units.
Five buyers have sued to nullify contracts to buy eight units and recoup their six-figure deposits. They have claimed in court that developer Larry Wireman hasn't delivered all he promised when they agreed to buy into Turquoise Place and each of the cases has been ordered to arbitration.
Those who agreed to buy the tower's other 173 units, however, appear poised to close, Ramey said. In fact, Wireman, who previously developed Caribe Resort, said those who have closed thus far have primarily paid cash.
"I'm pretty happy with it. Over half of the people who come here tell me it's the finest building they've ever been in," Wireman said. "It's hard not to be happy when everyone is impressed with it."
Beyond its imposing scale, Turquoise Place seems to set a new standard for high-end high-rises on Baldwin County's beaches.
"I think what (Turquoise Place) shows is that Orange Beach is a market with very upscale accommodations," said Mayor Pete Blalock. "There's maybe one or two other projects on the scale of Turquoise.... Opal and Caribe ? and Turquoise may be above them."
To say that the condos in Turquoise Place come well appointed is an understatement. Many of the fixtures and appliances dwell in the "if you have to ask, you can't afford it" price range.
The slender, boxy toilets, of which some units have six, are part of designer Philippe Starck's Duravit line and run about $425 retail. The vanity basins and faucets Wireman chose by the same designer sell in the $800 range. Each unit has some combination of ultra-modern showers and wengi or teak-trimmed Jacuzzi tubs. Many units include bidets and some penthouse units have tubs that fill from a spout in the ceiling.
The kitchens are outfitted with cavernous stainless steel Sub-Zero refrigerators. Many units have multiple dishwashers, and Wolf 36-inch stainless steel gas cooktops that fetch more than $1,700 retail are standard.
Above each fireplace, a 46-inch Sony high-definition television.... figure $1,400-plus retail, is mounted. But the spaces for the other wall-hung televisions in the bathrooms, in the bedrooms are left for owners to fill. Some penthouse units include crescent-shaped projector-ready "media rooms," which some might describe as small movie theaters. And owners have the option of making it so that they can control the lights and climate in their unit from their laptops.
Each unit also comes with a porcelain-tiled balcony equipped with its own hot tub, natural gas grill and bar sink. A balcony attached to a sixth-floor, four-bedroom unit is about 1,100 square feet. One penthouse has an 8,000-square-foot balcony 24 stories up.
Architect Forrest Daniell said the tower was designed so that support columns on the balconies could be arranged to provide the widest views possible from each bedroom. In some cases. the project's structural engineers had to reinforce certain floors to move columns that might otherwise obstruct the views from where beds would likely be situated, Daniell said.
On the 24th floor the Gulf-side views afford a panorama that stretches from Pensacola Beach to The Beach Club resort on the Fort Morgan peninsula. The northern view is equally stunning. While waiting for one of the tower's six high-speed glass-and-tile elevators, the northern tips of Wolf Bay and just about every roof in Orange Beach can be seen.
Unit 2404, which Wireman said sold prior to construction for $4.3 million and is now on the market for $4.5 million, has five bedrooms and 5cm HALF bathrooms. It comes with a separate small unit across the hall that includes a bathroom, small dishwasher and refrigerator ? think a mother-in-law or nanny suite for the Burberry set.
Among the common amenities are an indoor pool equipped with underwater speakers, a lazy river on the fourth floor, a steam room, sauna and a 3,000-square-foot gym that includes some 40 pieces of equipment, from treadmills to free weights. Outside, a Gulf-side swimming pool is under construction, and a lawn ? with grasses derived from a species found growing on African beaches ? that can be watered with saltwater has been laid between the tower and the dunes.
Turquoise Place's palette and subtle motifs are carried throughout the project from designs in the tile floor, curves in the drywall, the un dulations of the balconies, the curve of the dune walkover and the orange and blue arched pattern that is painted on the interior hall walls of several floors, forming a design that is best viewed at night from across Cotton Bayou.
While most units will serve as second homes, some will be rented. The first buyer to close on his unit, for example, has already lined up renters for the July 4 weekend as well as several other summer slots and snowbird season, Ramey said.
Dennis and Nancy Daniels were among the first to get their keys ? cards that emit a door-unlocking radio signal, actually. The Decatur couple, who like the Congemis are repeat customers of Wireman's, said they planned to rent their four-bedroom condo on occasion. Dennis Daniels said they've already had lots of interest from prospective renters who seem to be willing to pay a premium to see what Turquoise Place is all about.
"This is a fantastic building that has all the amenities anyone could want," Daniels said. For info, call 251-978-3718 anytime.
Sunday, June 29, 2008
By RYAN DEZEMBER
Staff Reporter
ORANGE BEACH -- Three years in the making, the first of the Turquoise Place's twin towers has opened, and buyers of the million-dollar-plus Gulf-front condominium units last week started moving in to what is now Alabama's tallest residential building.
"It's superior quality," said Rita Congemi of Covington, La., who bought a 13th-floor unit with her husband, Dominic. "I think it's probably the most beautiful building out here."
So far, about six condo sales have closed, with most units scheduled to be turned over to buyers next month, said Judy Ramey, broker for Caribe Realty, which sold the condo units.
Five buyers have sued to nullify contracts to buy eight units and recoup their six-figure deposits. They have claimed in court that developer Larry Wireman hasn't delivered all he promised when they agreed to buy into Turquoise Place and each of the cases has been ordered to arbitration.
Those who agreed to buy the tower's other 173 units, however, appear poised to close, Ramey said. In fact, Wireman, who previously developed Caribe Resort, said those who have closed thus far have primarily paid cash.
"I'm pretty happy with it. Over half of the people who come here tell me it's the finest building they've ever been in," Wireman said. "It's hard not to be happy when everyone is impressed with it."
Beyond its imposing scale, Turquoise Place seems to set a new standard for high-end high-rises on Baldwin County's beaches.
"I think what (Turquoise Place) shows is that Orange Beach is a market with very upscale accommodations," said Mayor Pete Blalock. "There's maybe one or two other projects on the scale of Turquoise.... Opal and Caribe ? and Turquoise may be above them."
To say that the condos in Turquoise Place come well appointed is an understatement. Many of the fixtures and appliances dwell in the "if you have to ask, you can't afford it" price range.
The slender, boxy toilets, of which some units have six, are part of designer Philippe Starck's Duravit line and run about $425 retail. The vanity basins and faucets Wireman chose by the same designer sell in the $800 range. Each unit has some combination of ultra-modern showers and wengi or teak-trimmed Jacuzzi tubs. Many units include bidets and some penthouse units have tubs that fill from a spout in the ceiling.
The kitchens are outfitted with cavernous stainless steel Sub-Zero refrigerators. Many units have multiple dishwashers, and Wolf 36-inch stainless steel gas cooktops that fetch more than $1,700 retail are standard.
Above each fireplace, a 46-inch Sony high-definition television.... figure $1,400-plus retail, is mounted. But the spaces for the other wall-hung televisions in the bathrooms, in the bedrooms are left for owners to fill. Some penthouse units include crescent-shaped projector-ready "media rooms," which some might describe as small movie theaters. And owners have the option of making it so that they can control the lights and climate in their unit from their laptops.
Each unit also comes with a porcelain-tiled balcony equipped with its own hot tub, natural gas grill and bar sink. A balcony attached to a sixth-floor, four-bedroom unit is about 1,100 square feet. One penthouse has an 8,000-square-foot balcony 24 stories up.
Architect Forrest Daniell said the tower was designed so that support columns on the balconies could be arranged to provide the widest views possible from each bedroom. In some cases. the project's structural engineers had to reinforce certain floors to move columns that might otherwise obstruct the views from where beds would likely be situated, Daniell said.
On the 24th floor the Gulf-side views afford a panorama that stretches from Pensacola Beach to The Beach Club resort on the Fort Morgan peninsula. The northern view is equally stunning. While waiting for one of the tower's six high-speed glass-and-tile elevators, the northern tips of Wolf Bay and just about every roof in Orange Beach can be seen.
Unit 2404, which Wireman said sold prior to construction for $4.3 million and is now on the market for $4.5 million, has five bedrooms and 5cm HALF bathrooms. It comes with a separate small unit across the hall that includes a bathroom, small dishwasher and refrigerator ? think a mother-in-law or nanny suite for the Burberry set.
Among the common amenities are an indoor pool equipped with underwater speakers, a lazy river on the fourth floor, a steam room, sauna and a 3,000-square-foot gym that includes some 40 pieces of equipment, from treadmills to free weights. Outside, a Gulf-side swimming pool is under construction, and a lawn ? with grasses derived from a species found growing on African beaches ? that can be watered with saltwater has been laid between the tower and the dunes.
Turquoise Place's palette and subtle motifs are carried throughout the project from designs in the tile floor, curves in the drywall, the un dulations of the balconies, the curve of the dune walkover and the orange and blue arched pattern that is painted on the interior hall walls of several floors, forming a design that is best viewed at night from across Cotton Bayou.
While most units will serve as second homes, some will be rented. The first buyer to close on his unit, for example, has already lined up renters for the July 4 weekend as well as several other summer slots and snowbird season, Ramey said.
Dennis and Nancy Daniels were among the first to get their keys ? cards that emit a door-unlocking radio signal, actually. The Decatur couple, who like the Congemis are repeat customers of Wireman's, said they planned to rent their four-bedroom condo on occasion. Dennis Daniels said they've already had lots of interest from prospective renters who seem to be willing to pay a premium to see what Turquoise Place is all about.
"This is a fantastic building that has all the amenities anyone could want," Daniels said. For info, call 251-978-3718 anytime.
Gulf Opportunity Zone "Go Zone"
The go zone tax break has been under constant scrutiny since being its inception. There are obviously many ways to interpret the law. I have dealt with numerous people who have tried to qualify for the benefits of a 50% tax write-off of purchased property. In my experience, the accountants seem to view the law differently in each case. I also believe that an aggresive accountant is best suited to handle go zone deductions. There is also criteria to be met when applying for these incentives. The most noteable are percentage of time in real estate and prior use of the condo. Prior use means that the unit must not have been placed in to service and rented. This does not mean the unit can not have been used personally, just not rented. The second major concern requires that the buyer spend a percentage of his/her time in the real estate filed. There is a way around this that requires the formation of an l.l.c., a nominal fee. Please let me know if you have any further questions. You can email me at aarono@gulftel.com or contact me at 800-530-4681.
Thanks,
Aaron Pugh
www.condoinvestment.com
Thanks,
Aaron Pugh
www.condoinvestment.com
Friday, June 27, 2008
Gulf Shores real estate sales
This is the first blog started from my website, www.condoinvestment.com The purpose of this blog is to have periodic investment discussions on the market in our area. I will provide information on sales, volume and pricing for many types of local real estate. Please submit any questions you may have and I will answer them in the order received. Hopefully I will have a very informative blog full of insight.
Thanks,
Aaron
Thanks,
Aaron
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