Search This Blog

Sunday, September 5, 2010

Beachside Key West Resort Condominium - Short Sale - Live in Style in your "Reclining Years"



Six or seven years ago the old Key West Holiday Inn was demolished and replaced by the newly constructed Beachside Key West Resort Condominium. A lot of locals and many frequent visitors bought into the "concept" and purchased units during pre-construction.

During that same time period construction started on several other large condominium and townhome projects in the Old Town and the Casa Marina areas. Included in this group was the beleaguered Watermark Project at the Historic Key West Seaport, the also beleaguered Atlantic Shores condominium development (which got shelved and replaced by the Southernmost on the Beach Hotel), The Meadows Townhomes, Seas Isle Townhomes, Paradise Harbour Condominiums, The Steamplant Condominiums, Santa Maria Condominiums, and Casa Marina Estates - not to be confused with the Casa Marina Residences (planned to sell between $2.5 to $3.5 million each but which got shelved as well). There were two big developments south of Beachside including Seaside which had individual three and four story condominiums with private interior elevators and open water views.

All of the aforementioned projects were supposed to feature first rate construction and superior amenities to attract high-end buyers. There was too much of a good thing and too few buyers willing to pay the high asking prices. Many of the buyers that purchased during the pre-construction phase closed on their purchases. However, some "buyers" forfeited deposits and walked away from their contracts. Most of these high priced developments have had price adjustments downward in the past couple of years.

Buyers did close on many of the properties that were built. However, none of the six Sea Isle Townhomes sold. Several of the units at Casa Marina Estates have evolved into short sales. Santa Maria Condominiums has had its share of foreclosures and short sales. All of The Meadows Townhomes were foreclosed. The Watermark project floundered and the entire project went back to the bank. Seaside has had its share of short sales and foreclosures as well. None of these chic developments became the sales success the developers envisioned. But that does not mean that the condos and townhomes that were built did not deliver on the quality of development.

A lot of people in my generation (the baby boomers) are already making plans as to where they will spend their reclining years. Many will keep a place up north for the summer and want a place in Florida for the winter. There's nothing new about that. Except there are going be so many of us soon-to-be-retirees that there may be a run on retirement places in Florida. I don't think our generation will be ready for the nursing home type facility. Instead I think a lot of us may want a place that has all of the convenience of a home with lots of amenities but no yard work and limited housekeeping required. That's why I think the Key West Beachside Resort might make an excellent place to live.

The Beachside Resort is located at the east end of the island of Key West. It's close enough to drive to Old Town to see a play, to dine at a great eatery, or to party with friends. It is conveniently located near our three shopping centers. The airport and several marinas are all within a mile or so. And the Key West Golf Course is only five minutes away.

The Beachside Resort has all of the amenities you would expect including a private beach, huge pool with poolside bar and grill, gym, lush tropical gardens, private parking, plus the hotel amenities including concierge service and restaurants. Imagine the convenience of having all of that available every day.

There are currently 14 units for sale at Beachside. I am writing today about only one: Unit # 415 which is a fully furnished unit with two transient rental licenses and that is offered as a short sale at $575,000. This is how the listing Realtor describes this unit:
"This gorgeous two bedroom, two and one half bath courtyard condominium has two transient licenses; both of the bedrooms are lockouts that can be rented separately. The unit has top quality fixtures and fittings throughout. Beachside is arguably the finest resort condominium in Key West, the pool and garden area is large and beautiful with an unobstructed waterfront view of the Gulf of Mexico. Owners can live in this magnificent condo year round or just part of the year and rent it when they are not in town. The structure is rated for 175 MPH winds."
The units are designed such that the formal entry provides access to the "guest" bedroom (or second transient rental) which abuts but is not inside the main residence. I can imagine that an older couple might live in the main residence and possibly use the second bedroom by a live-in when and if that might become necessary.

Think about the luxury of calling downstairs and having the restaurant deliver your dinner to your residence on a night you don't feel like cooking or going down to dine. If you are reading this and think my logic is a little strange, consider the cost of living in a typical assisted living facility. The Beachside Resort would not substitute for a person who needs a nursing home type facility, but it would be a great alternative for someone who is healthy that wants a no maintenance environment with lots of amenities and convenient location to Key West attractions.


CLICK HERE to checkout the mls listing data sheet and photos for Unit # 415. Be sure to notice the monthly association fees of $1609 which includes "Exterminating, Trash Removal, Building Exterior Maintenance, Building Insurance, Common Area Maintenance, Pool Maintenance, and Security". CLICK HERE to compare Unit # 415 with the other units currently listed for sale. Remember to compare not only price, but also square feet and whether the other units have two transient licenses and are fully furnished. While you are doing comparison shopping, you might want to compare Unit # 415 with similarly priced units in other condominium and townhome developments in Key West. (CLICK HERE to search the Key West MLS.)

I am really serious about looking at this property for a purpose other than the original intended user. I think this would be a great place to retire to. A cash buyer could live in luxury for about $2000 per month (plus utilities). And if you are not approaching retirement but want a place you could legally rent from time to time, this property might make a great rental property as well.






(The photos shown are representative of units.)

18 comments:

Anonymous said...

A shame that these developments all went belly-up. However, the Baby Boomers may be ready for retirement soon but their wallets are not. So many have to keep working till 70 or more just to keep their head above water due to the market crash of their 401K and retirement plans. Many already bought homes during the housing bubble and have walked away from their vacation homes. Too many properties with too few buyers. Stay at home vacations are the norm. And most people are so mad between government bailouts and economic woes they are not buying. Not yet. Housing prices will continue to drop and second home vacation buyers are not dipping into the pool at these prices no matter what the amenities. As for this unit - too far from Old Town for most who are able to buy. Cookie cutter at best and not enough Key West character for anyone really wanting the charm of the island.

Gary Thomas said...

Dear Anon, This is not cookie cutter. Far from it. The photos speak as to the quality of the interiors and the exterior.

Boomers that got screwed got screwed. I do not disagree with that. But I have been fortunate enough to work with a lot of regular people who did not get screwed and who have the cash to buy a place like this. Not everybody in life is a success. Those that are get nice things.

Gary

Anonymous said...

It does not look cookie cutter from the photos. Also looks like some very nice finishes.

Not everyone wants to live in the heart of the action.

Anonymous said...

It looks cookie cutter like it was photograhed in Boca Raton or Naples not Key West or like a typical photo spread in a CB or Pottery Barn catalog. It is in New Town next to the triangle across from the Quality Inn. If I wanted the lone five star in the midst of traffic and lower class motels and scooter rentals and Dennys that would be fine but most want some of KW local charm and quirkiness found in Old Town and not this.

Gary Thomas said...

Ah, the quirkiness of Old Town. Just about everybody wants it.

But not everybody with only $575,000 to spend can afford Old Town. If you did the search I suggested, you would have mls comparison I suggested you would have found only
19 properties in Key West priced between $400,000 - $575,000 with comparable square footage. Six of those are at 1800 Atlantic and two are at Duval Square. There are also a few houses I have written about in my blog.

I think people who read my blog are sophisticated shoppers and are perfectly capable of deciding what works for them or doesn't.

It is amazing how many buyers who look at houses in the $500,000 price range quickly change their minds when they see how little that price offers anywhere in Key West, but especially in quirky Old Town.

I'm not saying Beachside will work for everyone. It won't. There is only one unit that is priced this low.

Gary

Anonymous said...

Sorry Gary - $575,000 for a former hotel room is ridiculous to start with and overpriced at best. Key West seriously needs to get into the real world with their housing prices. Then again there are lots of stupid people in the world (and quite a few who visit Key West) who are willing to be suckered into this fancy former hotel suite.

Gary Thomas said...

Sir, You are entitled to your opinion. But don't misstate the facts. This is not a hotel room. It is a luxury condominium that has two licenses which permit the owner to rent the units if one wishes.

Not all of the condos at Beachside have transient licenses and not all owners with transient licenses rent their units. A retiree who plans to live in Key West a few months a year may or may not choose to rent. Having the opportunity to make a decision like that is something a lot of potential buyers do like.

Gary

Anonymous said...

GMan- the haters are out in force on this one!

Why should anyone get so riled up about what someone else is willing to pay?

Anonymous said...

Answer: Because they probably paid too much a couple of years go. A market like this makes some people understandably bitter.

Anonymous said...

I'm lost - if they don't all have transient licenses, how could this have been a hotel? Don't all hotels, vacation rentals, guest houses have transient licenses to rent short term? How can you not have enough to cover all the rooms if it was a hotel before? I mean, you can't have say 80 transient licenses for 100 rooms now can you?

Gary Thomas said...

The resort is known as the Beachside Resort. Marriott Hotels is the operator of the property. Not all owners have transient licenses and do not rent their units. Others with licenses do.

Gary

Anonymous said...

So what happened to the hotel transient licenses that were there when it was a hotel? They could not have disappeared now - where did they go for each unit? When a new owner buys into this condo hotel, isn't the former transient license for the unit there for the purchase or part of the agreement? Just because you don't want to rent now does not mean you won't in the future. It seems to me that these units should all have transient licenses otherwise they could not have been rented out as a hotel unit before conversion. Or is this a policy in Key West - just enough transient licenses for most of the rooms and hope you don't get caught.

Anonymous said...

The property has a huge sign out front that says Marriott. I drive pass and think its a hotel. I don't see Beachside Resort on the sign unless I missed the small print somewhere. You can still stay as a hotel guest there and many do. Nice restaurant too.

Anonymous said...

I would love to buy this condo, but I can't afford it. I wouldn't be interested in buying in old town.

Gary Thomas said...

To the reader just above who "would love to buy this condo", please go back and CLICK the comparables at Beachside. The very first unit is lower priced, $440,000, but it is only a one bedroom. However, it is located directly on the water and has superb water views and a spiral stairway that leads from the unit to the beach. This unit is still larger than similarly priced but smaller two bedrooms with one bath in Shipyard in Truman Annex. Do your own personal comparison shopping and make up your own mind on this but I think you will agree that the construction and amenities at Beachside are far superior to Shipyard-especially at this price.

Gary

Anonymous said...

Yes but Shipyard condos are Old Town, closer to the beach, have a history of rentals both vacation and long term, are in a planned gated community and have the one thing you can not compare - location! In real estate this is a must. Overall, Shipyard condos are a much better bang for the buck than Beachside.

Gary Thomas said...

I just sold a really nice two bedroom at Shipyard. It has a great rental history and you can't beat the location.

But I think the $440,000 larger unit at Beachside would appeal more to the retiree I was courting in my blog.

By the way, rentals at Shipyard are limited. The Beachside units have full transient licenses which means they can be rented daily, every day of the year. I don't think a full time owner would care about that but someone who wants to buy now and plan for later use may care.

As for location being "closer to the beach" is great. Having access by stepping down the spiral stairway to your own private beach is kinda "better" - don't you think? And although private beaches are snooty, you don't have to share beach tables with the homeless.

Gary

Anonymous said...

Game,set,match. I have been beaten. I agree - closer to the beach does not have the appeal as stepping down to your private beach with full transient license to rent at will not to mention the new-ness factor of Beachside.

Disclaimer

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.

Counter



Free Counter

Key West

Key West
You could be here!

Blog Archive

Gary Thomas in a Nutshell

My photo
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.