The minnpost.com has a story about a recent speech given by housing researcher John Mcllwain titled, “The Suburban Century is Over.”  Mcllwain predicts a shift in American housing and lifestyle preference away from the white picket fence suburbia towards a more urban lifestyle.

In TV terms the wonderful suburban neighborhoods of Leave It To Beaver, The Brady Bunch and Bewitched are fading and the urban lifestyles of the Odd Couple, Mary Tyler Moore and Frazier are coming of age.

What does this mean for the Southwest Florida and the greater Fort Myers area?  While no one is ever going to confuse Southwest Florida with the Upper West Side, we do have some really dynamic urban areas like 5th Avenue in Naples.  In recent years, a handful of urban-oriented projects have been developed or renovated that address this shifting lifestyle demographic.

Developments in the Fort Myers area offering an urban lifestyle experience include:

High Point Place – Riverfront high-rise in downtown Fort Myers walk to restaurants, Publix, Starbucks, offices, parks, theatres and museums.

Residences at Coconut Point – Condos located on the upper-levels of the Coconut Point Mall which has emerged as the destination in South Lee County.

Rapallo – Gated condos and villas adjacent and very walkable to the dynamic Coconut Point Mall

Cape Harbour – Waterfront boating community with vibrant boardwalk featuring restaurants, retail and community events.

Patio De Leon – Downtown Fort Myers renovated historic condos located above commercial space.

Earnhardt Condominiums – Downtown Fort Myers renovated historic condos located above commercial space

When the market turns and development starts up again, it would sure be wonderful to see more project like these completed rather than starter homes on random 1/4 acre plated lots in the hinterlands.

Southwest Florida condo buyers are taking notice of the significant price reductions at Fort Myers River District high-rise developments.

Over the last 12 months, 63 condos worth a total of $11.4M worth have sold in the six new Fort Myers riverfront condo developments.  On a dollars per square foot basis, recent sales have been at about 50% of the price that these condos originally sold for as new construction.

Here is a breakdown by building of these transactions:

Fort Myers High-rise 12 month snapshot

The Oasis has been a complete bust with no sales in the last year and High Point Place continues its leadership position as the premier Fort Myers luxury high-rise building.  Buyers are attracted to the high-end finishes in High Point Place units and also welcome the urban amenities including Starbucks and Publix that are available right outside the front door.

View active Fort Myers high-rise listings

Distressed High-rise Asset Available

Oasis Condominium in Fort Myers

Bank of America has foreclosed on the Related Group’s Oasis Condominium development in the Fort Myers River District.  The $157M filing ranks as the second largest ever in Lee County.  Jorge Perez and the team at Related Group had ambitious plans to bring a slice of South Beach to Fort Myers, but missed badly on the Oasis project.

What went wrong at Oasis? A number of factors have contributed to the failure at Oasis.  The biggest single contributor to the failure at Oasis is one of timing. This project was the last Fort Myers Riverfront high-rise development to be delivered with completion after the market had busted.  Also, Related was very slow to react to the changing market conditions and didn’t adjust pricing as quickly as competing developers.  Another strategy mistake by Related was trying to go it alone on the marketing and not listing Oasis units in the Fort Myers MLS system.  In summary, poor timing coupled with a failure to react to the changing market and not initially marketing via the local MLS were key drivers in the projects failure.

What is the current opportunity for a distressed asset buyer? At present a total of 425 units in the 440 unit project remain unsold and are currently being offered in a bulk sale by Bank of America.  The offering is being managed by Colliers Realty and does not have an official asking price.

What is the value of this asset? The 425 units at Oasis are a total of 576,640 SF distributed across two high-rise towers.  The 2009 Lee County assessed value of the project is $182,402,960, which looks to be a completely unrealistic valuation.  One defendable methodology to arrive at a fair value for this asset is to look at sales over the last year at the other River District high-rise projects.  For this evaluation, competing projects include: Alta Mar; Beau Rivage; High Point Place; Riviera and St Tropez.  Collectively, these five projects had 62 sales in the last year.  The average sale was for $177,543 with an average unit size of 1,523 SF for an average price of $116.57 SF.  This methodology would peg the retail value of the 425 Oasis units at (576,640 SF x $116.57 SF) $67,218,924.  As this is a distressed bulk deal, a buyer would probably look to acquire the asset in the $30M – $40M range.

Our analytically-orientated team is available to lend due diligence assistance to any potential buyers of this asset.

The News-Press provides an update on the high-rise scene in the Fort Myers River District.

• Leasing activity is increasing – drawing in younger tenants
• High Point Place sales are brisk – at slightly moderated prices
• First Street Village – will move forward in future
• Riviera – 75 units to be auctioned on 05/14/09

We have seen significant price reductions throughout the high-rise community in River District and a significant uptick in interest from potential buyers. Traffic on our Fort Myers high-rise web page has been particularly strong in recent weeks. The units at Alta Mar, Beau Rivage and the Riviera priced under $150K have been drawing significant interest.

The eclectic neighborhoods making up historic Old Fort Myers offer an introspective view into the early days of our city. It is not hard to envision early settlers flocking to the neighborhoods surrounding the winter estates of great men like Thomas Edison, Henry Ford and Harvey Firestone.

It is most exciting to drive around Old Fort Myers and see the early architecturally important homes undergoing restorations. This renewal is happening in many of the venerable Old Fort Myers neighborhoods including Allen Park, Dean Park, Edison Park and Seminole Park. This renewal is most pleasing as so often in Florida, old neighborhoods fall into disrepair and are lost forever.

Another exciting Old Fort Myers development is the reinvigorated Edison Restaurant that has opened at the “Fort, ” the oldest country club in Southwest Florida. The new team at the Edison Restaurant has created a fun place to grab a meal or catch up with old friends or make a new one.

Exploring Historic Homes [News-Press]
Desirability of neighborhood withstands test of time in Fort Myers [News-Press]

Living in an urban setting where life goes on without jumping in the car several times a day can be very rewarding. I had this experience in my late twenties living in Downtown Boston. Walking to work, jogging along the river and trying new ethnic restaurants…..what could be better!

Unlike some of our older livable cities like New York, Chicago, Washington DC and Boston, much of Florida was developed around the automobile. For many years, we have specialized in suburban-orientated, amenity-rich, gated communities, not urban focused settings.

The News-Press ran an uplifting story today about the growing urban scene in Downtown Fort Myers. I truly enjoyed reading about some of our residents who are enjoying an urban lifestyle. Many housing options are available in the downtown River District including high-rise condos and single-family homes in Historic Dean Park.

Downtown Fort Myers offers convenience with a historic vibe [News-Press]

As the Red Sox continue their spring training relocation dance with Sarasota, it appears that the most viable spots in Lee County for a new Red Sox complex are in Estero. A new spring training complex in Estero makes all the sense in the world.

First and foremost, Estero is close to the Coconut Point Hyatt where the Sox brass including Larry Lucchino stay during spring training. No more schlepping up US 41 through all those lights for the Red Sox bigwigs.

With one of the proposed Estero sites, it may be possible to share some parking with Germain Arena during spring training. This is a major plus for those concerned about the paving over of our paradise for a facility used only a few times a year. The access to I-75 from the proposed Estero locations is also outstanding, easing one of the major flaws associated with City of Palms Park.

Estero is home to the wonderfully upscale Coconut Point Mall, itself becoming a destination location for Southwest Florida. There is some really cool synergy in that Bob Kraft built a BassPro Shop next to Gillette Stadium in Foxboro…..it certainly makes sense to me that John Henry should build the Sox spring training home next to the BassPro Shop in Estero!

There are also linkage opportunities between the Red Sox and Florida Gulf Coast University. Having the Red Sox next door would certainly help put FGCU on the map up north in Red Sox Nation. An Estero location also expands the Red Sox drawing card to all of Collier County including Naples and Marco Island where many Beantown snowbirds like to hang.

A couple of neighborhoods in close proximity to a proposed spring training site that would prove very appealing to upscale Red Sox fans are Miromar Lakes and the Residences at Coconut Point. Miromar Lakes is recognized as one of the finest developments in Southwest Florida, with both a country club and magnificent freshwater lakes. The Residences at Coconut Point offer an interesting and unique urban living experience.

Let’s hope that Ray Judah and the rest of the Lee County leadership have the skills and resources to pull off a deal with the Red Sox in Estero.

Estero sites key to Lee County’s Red Sox designs [News-Press]

The News-Press has an article about Fort Myers high-rises and some of the challenges developers are facing in today’s market. This market sector was impacted by to heavy investor involvement in the first couple of projects including Beau Rivage and Alta Mar. The market swooned as these projects were coming to completion and those with a short-term investment strategy were unable to find end-users to facilitate an exit.

The misfortune of these high-rise quick-flippers creates an opportunity for today’s end-users looking for a Fort Myers high-rise deal. Currently, price start at $235,000 for a 3/2 at Beau Rivage and 149,900 for a 1/2 at Alta Mar. These prices are well below replacement cost for this type of waterfront construction. This is truly an end-user buying opportunity.

Economy Low Blow for High-rises

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 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.

Downtown area renamed

The Downtown area of Fort Myers along the Caloosahatchee River has been formally named the “River District.” The goal of the new name is to accentuate the positive riverfront location and bring more people and businesses to the area.

The new River District logo released by the Fort Myers Redevelopment Agency is both catchy and visually attractive. I applaud Don Paight and his team at the Redevelopment Agency for recognizing the importance of segmenting the area around the river from the greater downtown.

If you are interested in living in the River District, your condo options include: Alta Mar; Beau Rivage; High Point Place; Palm Beach Landings; Point Royale and St Tropez.

For a single-family home in the River District, consider the lovely Dean Park Historic District.

Downtown Fort Myers no longer exists [NBC-2]
Downtown FM now ‘River District’ [News-Press]

Fort Myers high-rise deposits returned

Investors in the proposed riverfront 28-story high-rise the Vue, to be located at at 13oo Hendry Street in downtown Fort Myers, were offered their deposits back. The project has run into difficulties gaining approval from the National Park Service due to its towering presence over Centennial Park.

With lackluster resale results at Fort Myers first downtown tower, Beau Rivage, the Vue investors are breathing a sigh of relief at the return of their deposit. Ultimately, a scaling back of the number of riverfront tower projects will help make the existing ones stronger.

High-rise investors offered refund [News-Press]

Would 24 hour real estate work in Fort Myers?

Have you heard about the Manhattan broker whose real estate office is open all night. His name is Michael Shvo and his outrageous antics, including this late-night twist, are often the talk of Gotham City’s real estate trenches.

This story led me to ponder whether an all night real estate brokerage would work in Fort Myers. Judging by the lack of evening crowds at most downtown establishments, we are probably not ready for something like this.

Fast forward about five years to a time when the high-rises like Beau Rivage and High Point Place are fully inhabited, First Street Village is teaming with residents and the Starbucks at First Street and Broadway has late night lines, this is the kind of environment for a late night real estate office. The time is now to invest in Downtown Fort Myers before the revitalization is complete.

It’s 4 A.M. Do You Know Where Your Realtor Is? [NY Times]

Keystone project for downtown renewal

First Street Village brings a fresh exciting approach to development in Downtown Fort Myers. The mixed-use project will include 356 luxury residential units, 38,000 square feet of office space, and 98,000 square feet of retail space to be anchored by a Publix supermarket.

Located on 12.5 acres between McGregor Blvd. and West First Street, I expect this project to have a similar impact on Downtown Fort Myers that notable projects like The Inner Harbor in Baltimore, Faneuil Hall in Boston and South Street Seaport in Manhattan have played in revitalizing downtown neighborhoods.

The developer of First Street Village is Ohio-based Cameratta Properties, who is also developing the Highpoint Place riverfront tower.

Please drop me a note if you would like to be added to the First Street Village registration list to receive ongoing updates about this exciting project.

Downtown makeover underway

Downtown Fort Myers Historic District is home to many of the oldest buildings in Lee County. This is an area that I remain bullish on for real estate investments. Just like waterfront property, they are not making any more historic downtown buildings.

With several renovations complete it is exciting to see national companies announce plans to open franchises in this area. The Starbucks opening later this year in the Kress Building will serve as a natural drawing card for other establishments. Quiznos is also opening a restaurant in the Kress Building.

Old city, new face [News-Press]

Riverfront 32-story highrises taking shape

High Point Place, the “Uptown Waterfront Tower” is rising in Ft. Myers on the banks of the Caloosahatchee River. The project developer is Cameratta Properties of Broadview Heights, Ohio. The Carlyle Group, a highly respected private equity firm with more than $17.5 billion under management, has provided funding for the project. I have had previous experience with the Carlyle Group and their involvement in this project is a big plus for me.

At 32 stories, High Point Place will be the tallest residential building in Ft. Myers and will contain a total of 273 units. Condo units are two and three bedrooms ranging from 1760 sq. ft. to 2230 sq. ft. The project is 100% pre-sold and pricing is estimated in the $850,000 to $1.5 million range.

High Point moving quickly [News-Press]

Boutique hotel planned for Downtown Ft. Myers

Holiday Inn Corporation is building a boutique-style hotel in Downtown Ft. Myers. The boutique chain, known as Hotel Indigo will be built on Main Street between Monroe and Broadway. The Hotel Indigo chain offers personalized serviced in a smaller upscale setting.

This project is great news for the continued revitalization of Downtown Ft. Myers. While our regions sprawl typically defined by new gated communities can stretch to places like Babcock Ranch and Alva, there is only one downtown Ft. Myers. I remain bullish on real estate investments in the Downtown area, particularly in architecturally interesting historic buildings.

Hotel to rise in historic section [News-Press]

Live, work, shop and play

Gated communities have served as the development staple for at least two decades in South Lee County. But as a man once wrote, “The present now will later be past … For the times, they are a-changing.”

Representatives from the Lee County government put down notions Monday evening that the county’s land development and zoning regulations prohibit building communities where residents can live, work, shop and play. The communities, called mixed-use by builders and planners, represent a return to the town or urban center where residents wake up, step outside a short distance to buy a coffee and newspaper, get to work on foot or via public transportation, and pick up their children from a school that is within walking distance from the home.

Resurgence of mixed-use developments likely [Bonita News]

Starbucks investing in downtown Ft. Myers

Any long time Gulf Returns reader has endured my whining about the lack of Starbucks in SW Florida. It seemed to me that this area was one of the last populated places left on earth without an invasion from our friends in Seattle.
Well that has changed in a big way this year with the opening on College Parkway, an event that I memorialized by saying “We have arrived.” Starbucks hasn’t stood still, soon there will be three Starbucks in the Market Square Area at the intersection of US 41 & Daniels Parkway.

From a real estate perspective, the Starbucks announcement that perks me up the most is the plan to open a store at the intersection of First Street and Broadway in downtown Ft. Myers. During each visit to downtown Ft. Myers, I think about unrealized potential and about the opportunity to invest.

Heading out to party in Ft. Myers doesn’t exactly elicit the same level of enthusiasm as say South Beach, Rush Street, Georgetown or the Village. A downtown needs more than a few restaurants and a club or two and a really cool cigar bar to matter. I think that Starbucks will pull along other establishments that could very well make Ft. Myers relevant. The smart money is already has a stake in this hidden gem that is about to explode.

Starbucks plans store downtown for 2006 [News-Press]