Tag Archives: nai

Is Real Estate Headed For Another Plunge?

Is Real Estate Headed For Another Plunge?

Tampa & Sarasota, FL

Tampa & Sarasota, FL

By Matthew Frankel via Motley Fool

Traditionally, the summer months are the peak time of year for home sales. With children off from school, it’s easier for families to house hunt, pack up, and move, without disrupting their lives too much. In fact, about 50% of all home sales occur during the summer months, according to Realtor.com.

If this is the case, than why are sales of new homes plummeting? Inventories of new houses are up, but sales are dropping at double-digit percentages from the same time last year. Maybe the real estate market recovered too far, too fast, and now it’s due for a pullback.

The data doesn’t look good

Home sales are down pretty much across the board. New home sales suffered the worst, with sales down 8.1% from May’s numbers, and far off from what economists had expected. In June, new homes sold at an annual pace of about 406,000, or more than 15% less than the 480,000 pace that was expected.

While new home sales are a relatively small part of the market, the bad news doesn’t stop there. Pending home sales, which are an excellent short-term forward indicator, fell 1.1% in June and are 7.3% less than they were a year ago. In other words, just as the summer heats up, sales are actually falling. This should be very disturbing news for real estate professionals as we head in to the “peak” selling season.

And finally, mortgage applications dropped 2.2% in last week alone. While a lot of this is due to a drop in refinancing activity, mortgage applications to purchase homes barely moved, rising just 0.2%. This is simply an anemic pace for this time of year, especially considering the damper put on sales activity by the harsher-than-normal winter.

A combination of factors

So, where have the buyers gone? Why is this summer not seeing the selling activity you might expect?

Well, for starters, houses are a lot more expensive this year. Since hitting bottom in early 2012, the average home value in the U.S. has increased by 27%. And just since last year at this time, home values have risen by nearly 9%.

While homes have gotten much more expensive since the financial crisis, people aren’t making a whole lot more money. The latest data shows just 2% wage growth over the past year, virtually identical with the rate of inflation. And the rate has been stuck between 1.5% and 2.25% since the end of the crisis.

The combination of higher prices and slow wage growth has simply made homes much less affordable to millions of people.

For complete article, CLICK HERE <——======</strong>

Second house razed for Tampa Bay Lightning & Channelside owner, Jeff Vinik’s new estate

Second house razed for Tampa Bay Lightning & Channelside owner, Jeff Vinik’s new estate

Ringling Bridge Sunset in Sarasota, FL - Heading out towards St. Armands

Ringling Bridge Sunset in Sarasota, FL – Heading out towards St. Armands

by Harold Bubil , Herald-Tribune

Tampa Bay Lightning owner Jeff Vinik and his wife — fresh off a victory in acquiring the Channelside property in Tampa — have taken the first significant steps to develop a grand residence on St. Armands Key that could have dramatic views of downtown Sarasota.

To that end, demolition has begun on a 64-year-old house at 132 N. Washington Drive that the Viniks bought in May for $3.5 million.

That deal followed the 2013 acquisition by Vinik and his wife, Penny, of a 12-year-old house next door, at 112 N. Washington Drive. The couple paid $4.25 million for it before tearing it down.

Taken together, the two houses measured 9,200 square feet.

The Viniks plan to replace those residences with one that will cost $3.6 million to build, according to a City of Sarasota building permit.

To view a unique property for sale on Golden Gate Point in sarasota, CLICK HERE <—-=====

For complete article and others by Mr. Bubil, CLICK HERE <—–======

Software entrepreneur Jesse Biter says his plans to build affordable apartments in downtown Sarasota, have been stymied

Software entrepreneur Jesse Biter says his plans to build affordable apartments downtown have been stymied and he intends to either take on a partner or sell the rental site altogether.

Biter’s decision comes months after he publicly touted a “new urbanist” vision involving apartments and retail space for the former United Way building on Second Street in downtown Sarasota, a plan he claimed was critical to improving downtown.

But Biter said Monday he couldn’t get the necessary bank financing because he lacks real estate development experience.

The inability to obtain financing could either delay or cripple the widely anticipated, $46 million project and prompt Biter to ultimately relinquish control.

“Banks love the project, but because I have never built anything before, they want me to have an experienced partner,” said Biter, who maintains that higher density and more affordable housing are essential to a healthy downtown.

“It hasn’t been for a lack of effort, that’s for sure.”

Biter earned an estimated $40 million creating and subsequently selling an auto software business, and he now operates a dealership supply company from the HuB Building on Second Street, which he also owns.

In addition to owning several other downtown storefronts, he also is active in politics on a local and national level.

But his most ambitious — and widely talked about — endeavor to date involved building apartments downtown to rent to young professionals, teachers, receptionists, police officers or alike.

By contrast, the vast majority of residential buildings in the city’s urban core are luxury condominiums that are financially out of the reach for most middle-class workers.

For complete article, CLICK HERE <—–======

Decision on a homeless shelter in Sarasota, FL, is … no decision

Decision on a homeless shelter in Sarasota, FL, is … no decision

By Jessie Van Berkel

After two hours of impassioned speeches, frustration and accusations from the community over the location of a proposed homeless shelter, city and county commissioners decided Monday on perhaps the least controversial option for the project: more time.

At the end of their joint meeting, the Sarasota county and city commissioners decided that the three homeless shelter sites they were slated to choose from would not work.

But they refused to give up on the idea of an adult homeless shelter that would accept people regardless of whether they were drunk or had taken drugs. Instead, they opted to go back to the drawing board on the shelter’s location, the most controversial piece of the homeless service puzzle.

It has been nearly a year since the community pushed for change on how to address the homeless population, and local governments hired expert Robert Marbut, who came up with a list of recommendations on how to get people off the streets. While many of Marbut’s recommended changes are progressing, the adult shelter proposal has slowed as commissioners cannot find a broadly acceptable site.

On Monday, they asked their staff to keep searching in the county and city. Ideally, they want a location with a building that is less expensive than previous proposals, and is in an industrial area close to the jail and social services.

The two boards agreed to reconvene in September for a status update.

For complete article, CLICK HERE <——=======

Condominium Ownership Is Becoming the American Nightmare

Condominium Ownership Is Becoming the American Nightmare

Another storm brewing in the Condo market?

Another storm brewing in the Condo market?

By Amanda Alix

Many homeowners who have bought into the American dream by purchasing a condominium are now regretting that decision, as some find themselves unable to sell or rent their units, while others face court battles with investors trying to force them out of their homes.

Condo boom gone bust
Like other types of housing, condos experienced buyer popularity during the housing boom. But the housing crash put an end to that party, too, and numerous condominium owners are still being negatively affected by the housing crisis. Many are finding themselves stuck as stringent lending regulations make selling nearly impossible – even as condo rules stop them from renting their homes as a stopgap measure.

Part of the problem concerns changes made by the Federal Housing Administration over the past few years. In an effort to protect taxpayers from risk, the FHA has tightened condo lending rules to the point where obtaining a mortgage for such a purchase is almost impossible.

Because the FHA rules apply to the entire development, even buyers who would qualify for such a loan won’t be able to get one. FHA loans are often used by first-time homebuyers, a group particularly apt to buy less-expensive condo units as a starter home. Though other types of credit are available, these potential buyers may not qualify.

Some owners try to salvage their soured investment by renting their home, but often run afoul of condo board rules on the subject. Many developments only allow a certain percentage of units to be non-owner occupied, often because financing options will be much more restrictive for buyers if too many apartments are rented. But, that rule can backfire, essentially dampening prices in the entire complex when prospective buyers realize that they won’t be able to rent their unit if the need arises. In addition, condo prices can be depressed if desperate owners need to sell the unit at fire-sale prices, just to be free of the problem.

Investors give owners the boot
In Florida, some condominium owners are suing a large group of investors who bought their condo building, and now want the individual unit owners out.

Madison Oaks was originally an apartment complex, but was turned into condos in the mid-2000s by developers looking to cash in on the southern Florida condo craze. Fewer than 20% of the units sold before the crash, while the rest became rentals. Now, an investor group has purchased the complex, and wants to turn it back into leased apartments.

To read complete article, CLICK HERE <—–=========

Rosemary project near downtown Sarasota continues advancement

Rosemary project near downtown Sarasota continues advancement

by: Alex Mahadevan | Digital Content Producer

A $20 million mixed-use project planned for the Rosemary District continues to navigate the development process, while a new overlay district promoting redevelopment becomes a reality.

Sarasota city commissioners unanimously approved a purchase and sale agreement for Rosemary Square Monday, which includes the sale of city-owned land on the 1400 block of Boulevard of the Arts and Fifth Street for $1.05 million to the developer. The contract mandates a redevelopment agreement between the city and Rosemary Square LLC within 120 days, and for construction to start 30 days after closing.

“In that redevelopment agreement we get into details and milestones of the project,” said Sarasota Chief Planner Ryan Chapdelain.
Those include the type of permitted uses for the property, if and how many phases in which construction will be conducted and other development constraints.

The development team, led by Mark Kauffman, plans to build 40 urban apartments “affordable as rental units for young professionals,” 34,000 square feet of a mixture of retail, office and arts space and a 7,000-square-foot town square. Rosemary Square will also include 40 parking spaces, according to the firm’s invitation to negotiate documents.

Rosemary Square stakeholders have stressed an emphasis on arts in the development, and have initial plans for a boutique cinema or live theater company.

For complete article, CLICK HERE <——=======

Battle over Siesta Key beachside lot continues

Battle over Siesta Key beachside lot continues

by: Alex Mahadevan | Digital Content Producer

The owners of the Siesta Key property at 162 Beach Road are not giving up the fight to build on the never-been-developed lot — just as their legal counsel promised before Sarasota County commissioners denied a variance to do so in April.

Ronald and Sania Allen, owners of the beachside property, have filed a request for relief from the County Commission’s decision to deny a coastal setback variance for the lot under the Florida Land Use Environmental Dispute Resolution Act, according to a June 4 memo from County Attorney Stephen DeMarsh.
A Special Magistrate, chosen by both parties, will weigh evidence during a hearing within 45 days of the filing of the request for relief. After the hearing, the mediator may issue recommendations for the county to buy the land, grant the variance, adjust variance standards or tweak the proposed development.

This was the third time since the early 1990s that the County Commission has weighed plans to develop the lot, and each time the petition has been for a smaller structure.
Opponents cited the nearby nesting sites of snowy plovers, the history of flooding on the site and its environment as reasons to deny the request.

“(The Allens) purchased the property assuming the risk of not being able to develop it,” said Shumaker, Loop & Kendrick attorney Cathleen O’Dowd, who represented the residents of the Terrace East condominium complex.
But, Icard Merrill attorney William Merrill, who represented the Allens, said denial of the request would constitute a regulatory taking.
“The case law from the United States Supreme Court on down is crystal clear on this,” Merrill said. “A regulation which denies all economically beneficial or productive use of land will require compensation under the taking clause.”

To see complete article, CLICK HERE <—–=======

Sarasota approves Villages project – 5,500 acres south of University Parkway and east of Interstate 75, will include 5,100 residential units, 300,000 square feet of commercial space

Sarasota approves Villages project – 5,500 acres south of University Parkway and east of Interstate 75, will include 5,100 residential units, 300,000 square feet of commercial space.

by: Pam Eubanks | Managing Editor

Sarasota Sunset

Sarasota Sunset

The Sarasota County Commission unanimously approved changes Wednesday that will allow Lakewood Ranch developer Schroeder-Manatee Ranch to move forward with its Villages of Lakewood Ranch South project.
The project, slated for 5,500 acres south of University Parkway and east of Interstate 75, will include 5,100 residential units, 300,000 square feet of commercial space and a new elementary school, among other features, once completed.

SMR has pledged $7.5 million toward roadway improvements — either the extension of Iona Road from Palmer Boulevard to Fruitville Road or an overpass across I-75 from Lakewood Ranch Boulevard to Cattlemen Road – as part of the approval process.

For a complete story, see the May 30 issue of the East County Observer by clicking HERE <—-======

USF Alumni Association Names Nutter to 2014 Fast 56 Rankings

USF Alumni Association Names Nutter to 2014 Fast 56 Rankings.

My Poken digital business data center

My Poken digital business data center

A new technology replacing antiquated business cards. It’s very cool! Experienced it here at the NAI Global conference in Las Vegas at Planet Hollywood.