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.

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

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

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.

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

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

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

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.

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