$1B Sarasota project delayed again
Herald Tribune
By KEVIN L. McQUAID
Published Friday, May 23, 2008
SARASOTA — The high-end condominium slide that has stalled projects throughout the state now appears to be biting Southwest Florida's most prominent project.
The owner of Sarasota Bayside said this week it will be at least 2012 before the first of four towers is completed at the $1 billion development.
Under its revised timetable, Irish American Management Services Ltd.'s first 18-story building at Bayside would not be finished until seven years after its originally scheduled date of completion.
Moreover, when tower one is eventually ready for people to move in, Irish American might have to charge hundreds of thousands of dollars more that it had planned for each condo. That extra cost could stem from large carrying costs for land and a redesign that may shave hundreds of residential units off the 700 that were approved in February 2007.
At the same time, Bayside could be facing stiff competition from new projects.
The Proscenium, a nearly $1 billion project planned for seven acres across U.S. 41 from Bayside, is slated to contain a 225-room Waldorf-Astoria Hotel, more than 200 luxury condos, 450,000 square feet of upscale office and retail space, and an 800-seat performing arts hall. If approved by the city later this year, it could open in 2011.
Last month, Longboat Key Club owner Loeb Partners Realty of New York unveiled plans to invest $500 million in its resort. Improvements there, beginning in 2009 and running through 2014, would include a new 222-room hotel; 261 new condominiums and nearly 32,000 square feet of meeting space; and a dramatically refurbished golf course.
Even without added competition, delays already have been costly to Bayside.
Patrick Kelly, Irish American's principal partner, said in a telephone interview this week that the region's real estate malaise has wiped out most of the millions of dollars of equity that the Dublin-based investment team injected into Bayside.
In all, Kelly and partners spent more than $100 million buying 15 waterfront acres along U.S. 41 that was home to the former Sarasota Quay, the El Vernona condos and the Belle Haven hotel.
"We plan to begin as soon as is practical," Kelly said. "That's our aim. But sales will have to precede any building."
Besides lost equity, the delay at Bayside is rippling throughout the project's development team.
HKR Architects Inc., the lead designer on Bayside, has shuttered its local office. The Dublin-based company had planned to use Bayside, and Sarasota, as a headquarters from which to build a U.S. design practice.
Instead, HKR now intends to design the 2.5 million-square-foot, mixed-use development from London, in conjunction with The ADP Group, a Sarasota architectural and land planning firm.
Before opening the Sarasota office in early 2007, HKR had done much of Bayside's design work from London.
Monday, May 26, 2008
Saturday, May 24, 2008
May 23, 2008
SAR monthly stats report for April 2008
*The following press release was sent to local media on May 23 at 11:30 a.m.
Sarasota market hits highest sales figure since June 2007
Home sales in the Sarasota MLS for April 2008 stood at 567 - the highest level in 10 months, and approximately 72 percent higher than the sales in January 2008. In 2008, sales have been progressively stronger month by month, possibly due to the influence of the new property tax portability law adopted in late January. Sales have climbed from 329 in January to 423 in February, then 514 in March.
Bucking the trend of dropping median sales prices for single family homes, April also saw the median sale price rise to $285,000 from $266,750 in March - about a 7 percent increase.
Condominium sales prices have shown a decline of about 8 percent since the first of the year, but they are also beginning to trend upward and have remained at relatively high levels for the Sarasota market. The median sale price for a condominium stood at $277,000 in April, about 18 percent higher than the $235,000 median sale price in March, but roughly 8 percent off the 2008 peak of $303,500 in January.
"We are very fortunate to live in a beautiful, vibrant community, with world-class culture and amenities," said Helen Sosso, 2008 SAR President. "These obvious factors continue to enhance the value of local properties, and we are seeing this reflected in our stronger sales figures. In addition, it appears we are beginning to see the effects of the recent state legislation which made it easier for families to upsize or downsize, without such a dramatic impact on their property taxes. Portability will likely continue to be a factor as we move forward in 2008."
The April 2008 report continued to reflect strength in pending sales, which stood at 765 - the highest level in the past year. In April 2007 pending sales were at only 609. Pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months.
Inventory levels were lower in April 2008 at 9,830 single family homes, compared to 10,443 in April 2007. Condominium levels also decreased from the April 2007 level of 6,344 to 5,608 in April 2008. Lower inventory normally means a tighter selling market, which tends to put upward pressure on prices over time.
Declining inventory is one of the indicators that a market is beginning to return to a more normal, balanced state. In fact, the Sarasota MLS statistics reveal a lower level of new listings on the market, combined with higher unit sales, which means the inventory is declining for two reasons and should more quickly reach a healthy equilibrium.
The days on market, which translates to the average time it took to sell a property, was at 166 days for single family homes in April 2008, slightly higher than the 158 days in March 2008. The figure has been steadily in the 158 to 160 range throughout the year. Average days on the market for condos was at 189 in April 2008, lower than the 192 figure in March 2008, and much lower than the 203 days reported in February 2008. The days on market reflects the pace of sales.
In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before.
In an article in the Wall Street Journal last month by Cyril Moulle-Berteaux, a managing partner of Traxis Partners LP, a hedge fund firm based in New York, the author puts together a thought provoking piece headlined "The Housing Crisis Is Over."
In the article, he defined the basic elements of the housing boom, and the historic trends that follow such a boom and return to normalcy. He concludes that the national housing market is bottoming out right now, and says the return of affordability to the market makes a recovery an almost certainty.
He predicts the nationwide home inventory will drop significantly by the end of 2008, and this shift will begin to be reflected in prices.
In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after a few months of declines. The April figures reflect this new reality.
Sarasota Association of REALTORS®
SAR monthly stats report for April 2008
*The following press release was sent to local media on May 23 at 11:30 a.m.
Sarasota market hits highest sales figure since June 2007
Home sales in the Sarasota MLS for April 2008 stood at 567 - the highest level in 10 months, and approximately 72 percent higher than the sales in January 2008. In 2008, sales have been progressively stronger month by month, possibly due to the influence of the new property tax portability law adopted in late January. Sales have climbed from 329 in January to 423 in February, then 514 in March.
Bucking the trend of dropping median sales prices for single family homes, April also saw the median sale price rise to $285,000 from $266,750 in March - about a 7 percent increase.
Condominium sales prices have shown a decline of about 8 percent since the first of the year, but they are also beginning to trend upward and have remained at relatively high levels for the Sarasota market. The median sale price for a condominium stood at $277,000 in April, about 18 percent higher than the $235,000 median sale price in March, but roughly 8 percent off the 2008 peak of $303,500 in January.
"We are very fortunate to live in a beautiful, vibrant community, with world-class culture and amenities," said Helen Sosso, 2008 SAR President. "These obvious factors continue to enhance the value of local properties, and we are seeing this reflected in our stronger sales figures. In addition, it appears we are beginning to see the effects of the recent state legislation which made it easier for families to upsize or downsize, without such a dramatic impact on their property taxes. Portability will likely continue to be a factor as we move forward in 2008."
The April 2008 report continued to reflect strength in pending sales, which stood at 765 - the highest level in the past year. In April 2007 pending sales were at only 609. Pending sales have been edging upward since December 2007, when there were only 374 pending sales reported. Pending sales reflect contracts executed by buyers and sellers, and indicate more closings in upcoming months and an improving market in the early summer months.
Inventory levels were lower in April 2008 at 9,830 single family homes, compared to 10,443 in April 2007. Condominium levels also decreased from the April 2007 level of 6,344 to 5,608 in April 2008. Lower inventory normally means a tighter selling market, which tends to put upward pressure on prices over time.
Declining inventory is one of the indicators that a market is beginning to return to a more normal, balanced state. In fact, the Sarasota MLS statistics reveal a lower level of new listings on the market, combined with higher unit sales, which means the inventory is declining for two reasons and should more quickly reach a healthy equilibrium.
The days on market, which translates to the average time it took to sell a property, was at 166 days for single family homes in April 2008, slightly higher than the 158 days in March 2008. The figure has been steadily in the 158 to 160 range throughout the year. Average days on the market for condos was at 189 in April 2008, lower than the 192 figure in March 2008, and much lower than the 203 days reported in February 2008. The days on market reflects the pace of sales.
In general, the Sarasota MLS statistics show a rebound throughout 2008 - every month seeing stronger numbers than the month before.
In an article in the Wall Street Journal last month by Cyril Moulle-Berteaux, a managing partner of Traxis Partners LP, a hedge fund firm based in New York, the author puts together a thought provoking piece headlined "The Housing Crisis Is Over."
In the article, he defined the basic elements of the housing boom, and the historic trends that follow such a boom and return to normalcy. He concludes that the national housing market is bottoming out right now, and says the return of affordability to the market makes a recovery an almost certainty.
He predicts the nationwide home inventory will drop significantly by the end of 2008, and this shift will begin to be reflected in prices.
In the local Sarasota market, we have seen the trend already beginning toward lower inventories, higher sales, and a leveling of prices after a few months of declines. The April figures reflect this new reality.
Sarasota Association of REALTORS®
Wednesday, May 21, 2008
2008 sales are stronger than last year
The darker green indicates the 2008 sales the lighter the 2007.
Michael Saunders & Co. remains the leader in sales followed by Coldwell Banker, Prudential, Sky and Keller Williams
Wednesday, May 14, 2008
Why pay rent when you can
buy a home with no out-of-pocket expenses?
FHA financing let’s you buy a home with as little as 3% down and that down
payment can come from a third party or family member in the form of a gift.
There are no income restrictions, and you don’t have to be a first time homebuyer to qualify for FHA financing.
You don’t need perfect credit to qualify for FHA financing.
30 year fixed FHA mortgage rates are at historic lows.
Home prices are lower than they’ve been in 4-5 years.
A parent, sibling or other family member may help you qualify for the mortgage as a non-occupant co-borrower.
In today’s market, sellers are eager to contribute up to, and in some cases, more than 6% of the purchase price to help cover the requisite 3% down payment and closing costs. Now is the time to take advantage of:
Low interest rates.
Seller’s willingness to negotiate.
The best housing prices and inventory in several years.
If you are spending $1,500/m in rent, you may be able to afford a condominium or home priced in the $165,000 to $175,000 range for about the same amount each month. According to the latest Realtor multiple listing service figures, there are 35+/- properties listed in the Lakewood Ranch area in this price range.
To learn more about this terrific homebuyer program and the flexibility and options available to you, feel free to call or e-mail for more information:
If you would like to have more information ...Harry is our in house mortgage broker.
Feel free to contact him directly.
Harry Fager
Private Mortgage Banker
MSC Mortgage Company
An affiliate of Wells Fargo Home Mortgage
(941) 951-6660
buy a home with no out-of-pocket expenses?
FHA financing let’s you buy a home with as little as 3% down and that down
payment can come from a third party or family member in the form of a gift.
There are no income restrictions, and you don’t have to be a first time homebuyer to qualify for FHA financing.
You don’t need perfect credit to qualify for FHA financing.
30 year fixed FHA mortgage rates are at historic lows.
Home prices are lower than they’ve been in 4-5 years.
A parent, sibling or other family member may help you qualify for the mortgage as a non-occupant co-borrower.
In today’s market, sellers are eager to contribute up to, and in some cases, more than 6% of the purchase price to help cover the requisite 3% down payment and closing costs. Now is the time to take advantage of:
Low interest rates.
Seller’s willingness to negotiate.
The best housing prices and inventory in several years.
If you are spending $1,500/m in rent, you may be able to afford a condominium or home priced in the $165,000 to $175,000 range for about the same amount each month. According to the latest Realtor multiple listing service figures, there are 35+/- properties listed in the Lakewood Ranch area in this price range.
To learn more about this terrific homebuyer program and the flexibility and options available to you, feel free to call or e-mail for more information:
If you would like to have more information ...Harry is our in house mortgage broker.
Feel free to contact him directly.
Harry Fager
Private Mortgage Banker
MSC Mortgage Company
An affiliate of Wells Fargo Home Mortgage
(941) 951-6660
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