Fort Myers Foreclosures

Even the wealthy are not imune from the growing wave of foreclosure activity. Business Week touches on some high profile celebrity foreclosures including Evander Holyfield, Jose Canseco and Ed McMahon. I am sure everyone will sleep better tonight knowing that Michael Jackson was saved from foreclosure on the Neverland Ranch because distressed debt investor Tom Barrack bought the $24 million loan.


Locally, the pricest bank-owned property is a home in the upscale Shadow Wood Preserve community listed for $699,000. This home sold for $1.53M back in 2006. Shadow Wood Preserve is a 440-acre gated golfing community of 300 homes ranging in price from $206,900 to $1.59M. Shadow Wood Preserve is located in Fort Myers on US 41, 2 miles south of Alico Road.


At the other end of the spectrum is a bank-owned home in the School View Homes Subdivision off Martin Luther King Blvd listed for $15,000.


It's Not Just Ed McMahon [Business Week]

Ocean's Reach Sanibel

Congratulations Ocean's Reach, the first development on Sanibel Island to be designated a Florida Green Lodge by the Florida Department of Environmental Protection. Ocean’s Reach was awarded this designation by demonstrating best practices in communication, water conservation, energy efficiency, waste reduction and clean air.

Ocean's Reach is a beachfront development on the Gulf of Mexico with 64 condo units. This development was recently extensively rehabbed. Ocean's Reach is a poplar development and units are in demand with seasonal renters. Ocean's Reach amenities include tennis, shuffleboard and a gulf-side pool.

There are currently five units available for resale at Ocean's Reach ranging in price from $619k to $995k.

Sanibel’s first Green Lodge designation goes to Ocean’s Reach [The Island Reporter]

An Oasis in Fort Myers

The luxury urban lifestyle commonly associated with South Beach has come to the Fort Myers landscape courtesy of the Related Companies and their new project, the Oasis. This development features five 32-story high-rises sited along the Caloosahatchee River in the Downtown Fort Myers River District. With 1,079 units at full build-out, Oasis is the largest high-rise riverfront development in Fort Myers.

The common amenities including the riverfront pool are unparalleled in Fort Myers. Poolside, the white theme is prevalent with luxurious canopied white lounging beds, white tables and fountains.

The Oasis condo finishes also set a new bar here in Fort Myers. Tower II high-end finishes include floor-to-ceiling windows, glass railing balconies, granite counter tops, stainless steel appliances and imported Italian cabinetry.

Currently, five resale units are available at the Oasis starting at $579,000.

Gen Y Real Estate

Southwest Florida is attracting more Gen Y residents today than ever before. One of the key factors contributing to this growth in younger residents include the annual double-digit enrollment increases of Florida Gulf Coast University. Last year FGCU enrolled over 9,500 students, with an ever-increasing number electing to stay in the area after graduation.

Additionally, the price corrections that we have seen over the past 18 months have opened up home ownership opportunities in the Fort Myers area for this new breed of Gen Y residents.

Where are the Gen-Yers choosing to live in Southwest Florida? Certainly the Fort Myers River District is attracting young professionals. Projects like Alta Mar and Beau Rivage offer waterfront luxury on one side and an urban edge on the other.

Other neighborhoods attracting Gen-Yers include: Gateway; Colonnade at the Forum and Sail Harbour. San Carlos Park is very popular with Gen-Yers and offers really convenient access to FGCU and the Coconut Pointe Mall in Estero. Fort Myers Beach is also a popular spot for Gen-Yers.

Real estate agents court Gen Y [USA Today]

The Wrong Lot

Interesting story about a house that was incorrectly built on the adjacent Cape Coral vacant lot. It befuddles me that a house could be on wrong lot for 11 years and even through a sale without the error being discovered until the current homeowner decided to install a pool.

This story has attracted a large number of comments with the majority suggesting that the lot owner should swap properties and accept the adjacent vacant lot. The Maryland-based lot owner comes across as a tad bit petty suggesting that he would not be satisfied with a simple swap of properties.

Ultimately, It seems to me that Sunshine Title of SW Florida, the title company that handled the last transaction involving the sale of the house, would be responsible for making the homeowner whole.

I had a similar experience a couple of years ago in Cape Coral due to a surveyor mistake about a property line and a slab was built half-way on my lot. Fortunately, I was in the process of selling the lot and the error was discovered with just the slab in place. Once the error was identified, the builder expeditiously removed the slab and started over in the correct location. Although the vacant lot sale was delayed about a week, everything worked out just fine on that transaction.

House dreams turn to nightmare in Cape Coral [News-Press]

Urban Lifestyle at High Point Place

The urban lifestyle that is so treasured along 5th Avenue South in Naples is slowly taking shape here in Fort Myers. At the west end of the River District, the tallest building in Southwest Florida is a fantastic anchor for our urban revitalization. Steps away from historic McGregor Boulevard, the Publix Supermarket, Starbucks and the First Watch Restaurant, High Point Place delivers urbanism to Fort Myers in a meaningful way.

At 32 stories tall, the views from High Point Place are truly stunning. Late in the day with the sun setting over the Gulf, the vivid colors of the glistening Caloosahatchee are truly spectacular!

A first class list of amenities includes a riverfront pool and jacuzzi, fitness center, saunas, gathering room with a catering kitchen and bar, conference room, garage level storage lockers, and a resident car wash bay. The adjacent marina rounds out the amenities list or the boating crowd.

Currently, there are 28 units at High Point Place available for sale in the Fort Myers MLS. Prices range from $499.9K for a 2BR/2BA on the 4th floor to $1.185M for a 2BR/3.5BA on the 24th floor.

Iona Fort Myers

One of the highlights of my week is perusing the Sunday Real Estate section of the News-Press. While Denny Grimes' confession that he went to the "Sex in the City" movie this week brought a tear to my eye, the best article for me this week was the overview of the Iona-McGregor neighborhoods.

Iona has a convenient "near town" location and also offers privacy and close access to our wonderful barrier islands. Iona is home to several of our premier gated boating communities including Catalpa Cove, Intracoastal Harbour, Jonathan Harbour and St. Charles Harbour.

Prices in Iona range from a 5BR 6BA riverfront mansion for $7.4M to a 3BR 1BA home in Iona Gardens for $79.9K.

Community snapshot: Privacy the main theme in Iona-McGregor [News-Press]

Fort Myers Home Staging

If you think Feng Shui is a steamed dumpling then you better keep reading the rest of this post. Staging a home prior to putting it on the market is definitely the rage throughout the real estate community.

Locally, many sellers of luxury and high-end properties have dipped their toe into the home staging waters. In a recent tour of luxury homes for sale in Fort Myers waterfront communities, the lion's share of homes priced over $1m were staged to some degree. Staging isn't just for luxury homes, it can prove very beneficial in marketing homes across all price ranges.

Congratulations to our very own hometown stager, Kathleen Garvey of Enhanced Interiors & Home Staging. Kathleen won the first ever Stager Idol Competition, which was sponsored by the Real Estate Staging Association. Way to go Kathleen!

On Deck.......ARM Recasts

The buzz in the mortgage industry is that the other shoe is expected to drop starting in April 2009. Here in Southwest Florida, we are truly living and breathing the havoc created by the subprime mortgage crisis. Rarely a day goes by without at least a single discussion about short sales, foreclosures, lis pendans and all the other challenges that exist in our market today.

The mortgage industry experts are predicting additional challenges early next year when a large percentage of adjustable rate mortgages (ARMs) recast, or in layman's terms, adjust upward. It is expected that the upward adjusted monthly payments will be more than many of these owners can afford.

If you are a homeowner with an ARM that will recast in the near future, the Mortgage Bankers Association has a mortgage counseling hotline (888-995-HOPE) that can help. Hotline counselors help borrowers negotiate with banks and offer advice on refinancing options.

The Next Real Estate Crisis [Business Week]

Sanibel Condo Deals

Ever thought about getting a place on Sanibel?

I know, during your last visit you checked out a few units and cringed at the prices........Might it be time to rethink Sanibel as a viable 2nd home option?

Today there are four Sanibel condos available for under $300,000 and a total of 36 available for under $500,000.

One of the best Sanibel deals is a 2BR condo at Spanish Cay, on Middle Gulf Drive, across from the beach. This property is listed for $285,000.

Another interesting option is a 2BR condo at Seashells of Sanibel, located on West Gulf Drive. This property is listed for $345,900.

Drop us a note if you want to check out Sanibel options.

On Sale....SW Florida Waterfront

There are deals to be had on waterfront property throughout SW Florida. The May issue of BoatU.S. Magazine features the waterfront bargins available in Fort Myers and Cape Coral.

Overall, real estate prices in SW Florida have dropped to levels similar to where they were at prior to the 2004-2006 boom.

Now is the time to kick back, relax, maybe put on your favorite Jimmy Buffet song and find your Fort Myers or Cape Coral waterfront dream!


SW Florida On Sale [BoatU.S. Magazine]

Top 10 Benefits of SW Florida Real Estate Bust

10. Nobody complains anymore about Hurricane Wilma

9. I no longer spend countless hours driving around Lehigh looking at lots

8. When all these tire kickers decide to buy, I will be rich

7. The memories of camping out in line the night before a new project sales event are a very, very distant memory

6. Denny Grimes recently congratulated my partner on a full price offer

5. Haven't gotten a real estate tip from a waiter in over a year

4. I no longer get 7 letters a day from Realtors wanting to list my already listed properties

3. There is no longer a porta-potty on every block in Cape Coral

2. If the prices keep dropping, I might be able to afford to live in Naples

1. My minister didn't renew his real estate license

Not So Big Architectural Movement

Here is an interesting concept from a local firm, the Seacoast Cottage Company. This company is developing a niche focusing on high-end not-so-big construction. In this era of trophy homes and over-zealous mcmansions, a focus on quality over quantity is a fresh and welcomed approach.

The Not So Big movement was created by architect Sarah Susanka, who has since 1998 published six books on the topic.

Many of the buildable lots in treasured oceanside locations like Sanibel, Captiva, Boca Grande and Fort Myers Beach are smaller and unable to support a large trophy home. Seacoast Cottage truly offers a great solution this application.

Seacoast Cottage is planning on building a model home in The Dunes community on Sanibel. I look forward to viewing this property when complete.

Beach cottage industry not big on building large [News-Press]

Short Sales vs. Foreclosures

One of the big challenges in the SW Florida market right now are the ever increasing number of short sale listings hitting the market. Cape Coral short sales, account for over 1,800 listings on the market right now.

Many are very attractively priced and are also attracting offers. The issue is that the banks are not accepting many of these offers on short sale properties. There are a number of reasons why the offers are not being accepted including: bank workload; multiple mortgages on the property and the lack of true hardship situation for the owner.

Many buyers have submitted offers on these listings and wait and wait......and nothing happens. If you are looking to leverage the current market, a better option may be to target properties that have already been foreclosed. Transactions for foreclosed properties have been progressing at a much more normal pace.

TRIM Notice week

In this world nothing is certain but death and taxes.

--Benjamin Franklin

It is once again every Lee County investors least favorite time of the year, TRIM Notice week.

Mine came in an oversized manila envelope affixed with $0.87 worth of postage. With much trepidation, I sliced opened the heavy-duty envelope......slowly pulled the stack of papers out.....and voila.......most of my properties had doubled in value from last year with a corresponding tax increase. Some of the valuations are quite a bit higher than what I could sell the property for today.

The first thing that came to my mind was "maybe I should dress up in an Indian outfit like our founding fathers and dump some tea off the Sanibel Bridge." Probably not a good idea as the local authorities would most likely put me away for violating the Clean Waterways Act.

After cooling down, I read every last word of fine print on the back of the TRIM Notice and came away with the following tidbit, property value for the purpose of this TRIM Notice is the value on January 1, 2006. Unfortunately this is a challenging date for investors as values have dropped in many cases since that date.

Being an analytical sort, I ran some fair market value(FMV) analyses using direct sales comparisons on my properties and some of my customers properties. Unfortunately, it looks as though Ken Wilkinson and his team have in fact nailed the value as of January 1, 2006 on the properties that I looked at. Tragically, this is no longer a valid valuation, but according to the law, the taxes due are based on the older January 1, 2006 figure.

In looking for a bright spot, the only solace that we can take in this situation is that we will get the benefit of lower January 1 valuations once property values start to increase again.

The Cape has arrived

Starbucks is coming to town

The recent announcement that the first Starbucks will be opening in Cape Coral has left the accounting folks at LeeWay scrambling to make up the toll revenue that will be lost from caffeine-crazed Cape Coral citizenry no longer having to cross the bridge for a fix.

The Cape's first Starbucks will be located at the Coral Walk Shopping Center which is at the intersection of Pine Island and Pondella Roads.

At last: Starbucks coming to Cape [News-Press]

Reply.com

Site aids buyers in making unsolicited offers

Reply.com is a new real estate site that allows a buyer to make an unsolicited offer on a property. For $24.95, reply.com will create, prepare and priority mail an offer to a seller. The reply.com site provides estimated valuation information for properties in a manner similar to zillow.com. Reply.com offers are non-binding and serve as a means for connecting buyers and sellers without real estate agents.

This model works well for properties that are not currently on the market, as most listed properties would contractually require a broker commission payment regardless of who produces the buyer. Reply.com is an interesting concept and one that has the potential to catch on quickly once it gains critical mass and credibility in the marketplace.

Forged deeds

Growing problem for absentee owners

Forged deeds continue to plague absentee owners of Florida property. Although notorious deed scam artist Ben Ari is facing justice, the practice is still common in Florida. While other states have taken steps to tighten the notary public process including log books or even thumb prints, Florida has not taken any steps to tighten control.

Out-of-state property owners should make it a habit to check the local property appraiser site in the Florida county where they hold property to insure that the property remains in their name. Here locally, the site is the Lee County Property Line.

Criminals steal houses through deed forgery [Miami-Herald]

Demographic shift

Lee County is getting younger

The Fort Myers area is undergoing a significant demographic shift with the average age of our residents rapidly dropping.

Much of this growth has occurred in Cape Coral and Lehigh as families have been attracted to these communities in large numbers. Since 2000, Lee County has added over 100,000 residents. It is estimated that nearly half have settled in Cape Coral, whose population now exceeds 156,000 residents.

Between 2000-2005, the average age has dropped in Lee County from 45 to 43. The number of residents over the age of 65 has also dropped from 29 percent to 26 percent. These age shifts are quite significant in such a short period of time.

While relatively affordable housing has fueled much of this growth, the jury is still out on whether or not Lee County can attract companies to provide growth in quality jobs. Diversifying our economy beyond construction, real estate, and tourism will be key for maintaining a good quality of life in the area.

We're getting younger as population grows [News-Press]

Real estate vultures

Market ripe for picking?

A recent CNN/Money article suggested that in many markets across the country experiencing slowdowns, there are very few bargains for vulture investors to prey upon. The article cites the fact that too many bargain hunters in Manhattan are driving up the prices of potential deals.

These conditions are certainly not reflective of the current environment in Southwest Florida, where bargains are available across many sectors and price ranges. There do not appear to be many bargain hunters trolling in the residential waters right now and this is most likely due to the lackluster rental market for investor-owned property.

There has been an uptick in investor activity in the lower end of the vacant land market, particularly in Lehigh. Offers are being written on property at the lower end of the pricing scale. Many of the offers that I have seen lately are written to heavily favor the buyer and have included discounted prices, long closing intervals and multiple contingencies.

It will be interesting to watch the residential sector as summer fades to fall and many more visitors come to the area. Will the across the board price reductions that we have seen in 2006 be enough to spur on buying activity?

Slim pickings for real estate vultures [CNN/Money]

Marina South at Cape Harbour

Cape Coral project open to aclaim

The first tower at Cape Harbour's 15 story Marina South is completed and residents started moving in on Friday. This project, which features retail establishments on the ground floor, is another notch in Cape Coral's coming of age. A second matching tower will be opening in May 2007.

Back in March 2005 when the pre-sale was held via lottery, Marina South sold out in just hours. In city yearning for upscale ammenities, Marina South offers a new lifestyle choice for its residents.

Currently Marina South units are available from the the high $300,000s through $1M.

Unique condo community welcomes its first residents [News-Press]

Housing starts Naples + Fort Myers

Topping the housing starts in Southwest Florida

The top ten communities for housing starts in the Naples-Fort Myers market are: Gateway, 730; Village Walk of Bonita Springs, 562; Bella Terra, 375; Verona Walk, 359; Sandoval, 328; Olympia Pointe, 312; Verandah, 308; Coral Lakes, 245; Tuscany Cove, 223; and Palmira, 191.

Long-term market growth

Study bullish on Southwest Florida real estate

Housing industry market research firm Metrostudy recently released a study which recognizes long-term health of the Naples-Fort Myers market.

“Demographic and economic trends suggest continued growth in demand for new homes over the long term, driven by a current average annual growth rate of 18,600 new jobs. That is an impressive number, given the low unemployment rate — 2.3 percent — in this market.”

The study cites move-ins as a methodolgy for measuring housing demand rather than closings and deed recordings. This is a much better way of evaluating a market like ours that has such a heavy investor presence, particularly in new construction.

While the market is stalled right now across nearly all sectors, I too remain optimistic for the longterm in Southwest Florida. Nearly every day I hear from prospective clients living north of the Mason-Dixon Line that are looking to relocate to this area at some point in the future.

Study sees long-term demand in local market [Naples Daily News]

Pre-construction resource

New site for selling pre-construction

A day in the SW Florida real estate trenches rarely passes without speaking with someone that has made a deposit on a pre-construction condo. The conversation usually goes something like this:

client: Hey Mark, Whatdoya think about (fill in blank with project name), I bought a condo there?

me: what are your plans, are you going to live there? rent it out or flip it?

client: I am going to sell it or if it doesn't sell at a profit
rent it out.... (no one ever seems to live in these places)

Since the days of flipping these properties at a serious premium are over, what is the best course of action? While each scenario is different, a new site Sell Your Pre-construction.com provides an outlet for investors to market pre-construction investments directly to consumers. The site charges property sellers a flat $199.99 to advertise a property. What a great idea, I wish I had thought of this!