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Sunday, August 30, 2009

50 Seaside South Court -Key West - Bank Owned - Luxury Water View

50 Seaside South Court is something a little different for a Bank Owned home. The four story luxury townhome is located at the eastern end of the Island of Key West and has direct water views. And here is the feature that sets it apart from most other properties in Key West: it has never been lived in.

The listing Realtor describes 50 Seaside Court South this way:
"This 4 level luxury townhome has never been lived in. Features include; 2 car garage, 6 balconies, sun roof, elevator, laundry room and ocean views. Kitchen has granite countertops and brand new stainless steel appliances. Key West Seaside Residence offers plenty parking, 2 large swimming pools, a fitness center and clubhouse."

CLICK HERE to read details posted by the listing Realtor and view photos in the mls. But let me add a few thoughts of my own regarding Seaside as a place to live and offer some suggestions about this unit in particular.

This property has 2736 sq ft of living space on four levels. You will find the garage, laundry,and storage on the ground floor plus about 500 sq ft of courtyard space which you might use as a private garden. This space faces South Roosevelt so you will get some noise from passing traffic. There are east facing balconies on each floor. And then there is that private rooftop sundeck where only God and people in low flying airplanes can see you. I was there on Sunday around 6:00 PM to take some photos. There just was not a lot of traffic at that time at that location. I was expecting more. I was surprised.

There are ocean views from the master bedroom and livingroom. The kitchen is on the top level on the west side, and it has a vaulted ceiling and sunset views. The building is poured concrete construction and has Category 5 hurricane rated windows and doors.

I sometimes ride my bike out to this end of the island in the mornings--before it gets hot. The ocean is calm. The runners, roller bladers, bicyclists, speed walkers, dog walkers, and just people who enjoy a casual walk populate the esplanade from 1800 Atlantic east past Smathers Beach all the way down to the point where Flagler intersects South Roosevelt. I drove out there late Sunday to take some photos and was suddenly reminded of how sweet this end of the island is. I could hear the birds yelling at each other about a food find. The temperature had cooled and the sun was preparing to put on a show its night show at Mallory Square. And I thought to myself that I could live there. I took in that view and envied those that get to see it everyday come rain or come shine.

One of the reasons people move to Key West is to experience living life on this island. It sometimes amazes me that some people end up living in places without any outside space. Being cheap can really be foolish. I mean why live in Paradise if you have to live in a room with no view or a place with no space?

I looked at the buildings and decided they are appropriately designed and built. They don't look like the charming little cottages and big Conch houses that populate Old Town Key West. But they do mimic the essence of Old Town architecture without copying it. Ships chandlers built many of the grand old Conch houses in Old Town in the 19th Century. These grand new structures were built by 21st Century architects, engineers, and contractors whose job it was to design and build housing that can withstand our sometimes intense weather and the demands of modern day living.

Snowbirds may really find a place like this enticing. There are two swimming pools, a little corner grocery, and even a day spa withing walking distance. This unit has a two car garage so you won't need to worry about your car getting rained on. It has a private elevator to travel from floor to floor. That makes carrying groceries a snap. The area is totally secured and the grounds professionally maintained. So all you need to do is unpack your bags--that is, if and when they show.

50 Seaside South Court is priced at $1,100,000 or $402 per sq ft. That's for all new, never been lived in space with quality finishes and an ocean view.

But Wait! The place next door at 51 Seaside South is also available. Same size as 50 Seaside South. But it is priced at only $950,000 or $347 per sq.ft. for the same sized space and same view, but it has been lived in a bit. (The seller on 51 Seaside South will contribute $10,000 towards closing costs. 51 Seaside South Court is NOT bank owned!) CLICK HERE to read the mls listing info and view photos of this unit. I am sure that you can get a similar place in Miami for less. But then you'd be in Miami!

If you would like to see 50 Seaside South or 51 Seaside South, or any other of the units in this complex, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties in Key West Florida.


Anonymous said...

The Captain says:

Anyone even remotely considering buying a condo in this development should read Rock Trueblood's July 06, 09 post. Rock (who coincidently rents in this development) discusses the practice of "shadow" inventory as it relates to this project. This, coupled with the listing last week of 5 Seaside North units, the fact that banks are not lending on condos in general and rumors of a "special assessment" being imposed due to this project's insolvency should concern even the most jaded buyer. Sorry Gary but I thought your readers should know this.

Captain out.....

Gary Thomas said...

Captain, Banks are lending on condominiums and town homes in Key West. They require that the condo or town home association are financially viable. Each time I get someone who talks about buying a condo or town home, I call a local lender (a real home town bank, if you will) and ask "Will you loan on this property?".

If the answer is "No" that is the end of it. If the answer is a qualified "Yes" I try to meet the requirements of the "Stress Test" that the bank has set up to determine whether it will loan on a property in a particular development.

Categorically refusing to loan in a condo or town home association is tantamount to Red Lining. That is illegal. But there is nothing illegal or illogical about making sure that a homeowner association is financially viable.

As for Seaside, there were five new short sale properties listed last Friday.All are owned by the same seller. I am showing one of those units on Tuesday. Those units are not as large, nor are they priced as high as, either 50 or 51 Seaside South.

Maybe someone in Washington should address the collapse of homeowner associations across the country. I wrote about this issue a year ago and I really got yelled at (not in my blog, however). The Florida legislature enacted a new law that requires foreclosing lenders to pay a portion of homeowner association arrearages on foreclosed units. But this legislation only affects foreclosed properties.

There are still many home owner associations that are facing insolvency. Many are cutting back on services just to make ends meet. Some property owners continue to collect rental income but refuse to pay their mortgages or home owner association assessments. Their individual greed is screwing other honest homeowners.

Rumors are not necessarily true and/or factual. So I'd suggest potential buyers really do their due diligence on any property where the home owners association may be facing financial difficulty. Have an account review the association minutes, budget, and reserves. Determine how much deferred maintenance there is. Look at fees paid to outside management companies. Determine whether as a buyer you think there is a potential risk. If you think there is a risk, don't buy into the property.


Anonymous said...

Rock does NOT rent in Seaside - he used to rent in Las Salinas, the dump behind Seaside before Ocean Walk. Now Rock lives in Cudjoe Key - he left Key West and why I don't know so please get your facts straight before posting.

Anonymous said...

Gary- I became a reader of your blog after your post on the condo associations. Keep it up.

Anonymous said...

Isn't it true that if a certain percentage of units in a condo association are rentals it is next to impossible to get a mortgage? I know it's different with HOA but lets say a condo association has several in foreclosure or bank owned and also has rentals equal to 30 per cent or more, what is the motivation for any lender? Also, if Seaside has a percentage of affordable units, would those owners have an equal share in any assessment or would their status as affordable prohibit them from being forced to contribute at the same amount as those market rate homes?

Gary Thomas said...

I am writing "off the top of my head" and without any factual or legal knowledge but...

1-- I bet more than 30% of the condos of the really nice condos in Aspen and Vail are rented either as long term or vacation rental.

I know that more than 30% of the units at 1800 Atlantic in Key West are rented that way. I think the last writer's supposition is incorrect.

The next line in that writer's question is the heart of the problem. It is not an issue of motivation, but an issue of business sense. Nobody wants to lend into a business venture that is headed down unless the risk-reward is very profitable. This ain't one of those. Banks will not do it. But I said refusing to not lend their would be illegal in my opinion. So they set rules, such as the "stress test" to determine the viability of the association.

The practical answer is if the association fails the stress test, no loan is possible. From any lender. And the result could be for more units to fall into the foreclosure mess.

Some associations are imposing special assessments. Some are imposing "buy in" fees on new sales. It is a genuine problem. No doubt about it.

Affordable units should have to pay a proportionate amount of any fee that affects the entire property or a building in which their particular unit is located. The units are "affordable" not to keep their payments cheap, but to restrict the re-sale for a profit during a term of years. So it stands to reason that those units need to pay their pro-rata share of all expenses.


Anonymous said...

Interestingly enough, it appears that something like 8 (did I count correctly) units here went on sale today, all at 525? or was it 575? Shadow inventory would give me serious second thoughts, plus the thought of condo fees effectively tripling over the next years... We have effectively removed any condos from our consideration because of these thoughts.

Thanks, Gary, and all the posters, for a generally well-reasoned discussion!


Gary Thomas said...

Just because I wrote about these properties does not mean I believe either is a "bargain". I am also not advising any potential buyer not to purchase any property at Seaside.

The information on this site is for discussion purposes only. Under no circumstances does this information constitute a recommendation to buy or sell securities, assets, real estate, or otherwise. Information has not been verified, is not guaranteed, and is subject to change.


Anonymous said...

I didn't intend to imply that you are driving traffic or making recommendations. You are one of many sources we follow, including our own trips down to see places. But your blog sure does create some lively discussions!


Gary Thomas said...

After showing one of the recent short sale and less expensive units at Seaside, I did develop an uneasiness about that property.

Seven of the less expensive units are for sale-all below the price for which they were purchased. If they sell somewhere in the $400s, which I assume they will, I am concerned that other owners may decide to walk away as did a lot of the owners at the Golf Club and at 1800 Atlantic and The Shipyard. That "walk away" could trigger a further downward spiral on the development as a whole.

I misjudged the number of units that would be affected at 1800 Atlantic. I got it wrong.

I hope my assumption about potential price spiral downward for Seaside is incorrect. I don't want the owners out there to go through the financial and psychological trauma that has beset the owners at the Gold Club and other Key West condo and town home developments.

That is the reason that I added the reminder that my writing about any property, but especially Seaside, is not a recommendation to buy or not to buy. Readers must use their own judgment and rely on advice from professionals regarding their particular circumstances as they relate to a potential purchase of real estate.


neonguy528 said...

Very nice condo's. You can't beat living in Key West. All the best.


The information on this site is for discussion purposes only. Under no circumstances does this information constitute a recommendation to buy or sell securities, assets, real estate, or otherwise. Information has not been verified, is not guaranteed, and is subject to change.


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Key West, Florida, United States
I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.