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Friday, October 23, 2009

Bank Owned - 1318 Duncan Street - Key West

A few years back when the cost of single family residential housing in Old Town Key West got to be nearly prohibitive for all but the super rich, several larger old properties and some former apartments were converted into condominiums. As the market heated up even those units started to get quite expensive. Such was the case of the four unit complex at 1318 Duncan Street. The main house was quite large and got divided quite naturally. The larger downstairs unit (1188 sq ft) became Unit # 1. The upstairs unit is 750 sq ft. It became Unit # 2. Two other cottages in the rear that are located on the south side of the large and sunny pool became Units 3 and 4. (Both units are owned by another person who rents each as long term rentals.)

The real estate market turned south. And the two units in the main house turned Deep South. They are now bank owned and they are unwanted. They have been on the market since July 2009. I have shown them a couple of times. The downstairs is large and inviting. It was offered for sale in 2007 by the former owner for $849,000. That owner used it as a legal long term vacation rental and was quite successful with it. The same former owner tried to sell the upstairs unit in 2007 for $475,000. That owner rented it as a long term rental. The market took a downturn and the bank foreclosed.

CLICK HERE to see the current mls listing info provided by listing Realtor along with current photos of the downstairs unit which is now listed for $260,000. CLICK HERE and CLICK HERE to see what the pool and kitchen looked like when it was marketed for $849,000 IN 2007. (Remember, those two photos are two years old.) It is the same place. It's just another typical bank owned foreclosure-almost.

CLICK HERE to see the listing info on the upstairs unit which is now priced at $195,000.

This is the issue as I understand it: The condo association became defunct after the former owner stopped making condo association payments. The association did not have sufficient funds to pay building insurance and make other necessary payments. The bank owner is left with an asset that cannot be financed by another bank because of the defunct condo association.

I discussed this matter with the listing real estate broker about a month ago. I was told the bank owner would prefer a cash buyer that would take both units and let that buyer deal with the condo association difficulties. I believe the bank owner would sell both assets at a discount to a cash buyer.

The downstairs unit has a large private deck off the dining room and the use of a garage CLICK HERE. The interior needs painted and cleaned. The pool and deck area is quite large and very attractive. In better days this place was a showplace. It can be again.

If you are a cash buyer please call me, Gary Thomas, 305-766-2642, to arrange a showing on these two units. I would recommend that a serious buyer engage a local real estate lawyer to prepare any offer to purchase this particular property.


Anonymous said...

I've got to be honest, Gary, these places look like they have 'nightmare' written all over them.

Gary Thomas said...

Dear Anon: Like I said. I recommend a buyer hire a local real estate lawyer to review the matter and write the offer.

The bank is stuck with two units that it cannot sell because the condo association isn't viable. But it is "fixable". A buyer with some cash and a good lawyer can turn this problem into a positive asset in my opinion.

But this is not a project for an ordinary investor.



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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.