I first wrote about 1316 and 1315 1/2 Whalton Street in May 2009 when it was offered for sale as a Short Sale property. I re-read that blog and decided I did a pretty good job in describing the property, the location, and the intrinsic value of this property. So I opted to re-post some of what I previously wrote to help potential buyers to see what this property offers for the asking price of just $575,000.
We are getting to a difficult point in real estate pricing in Key West. Many of the bargain properties are gone (not all). Many of the properties that remain are either located in bad locations (you decide what that means) or the properties seem over-priced (we all know what that means).
I am fortunate enough to have some active buyers that want nice houses priced just under one million. They want a good neighborhood, good neighbors, and a very nice house. You would think for a million bucks that would be easy. It isn't. Not in Key West. That's not to say we can't make it happen, but there are not a lot of properties priced to sell at that magic number.
In the 1980's and 1990's industrious buyers sometimes bought neglected properties and renovated them to get create the Key West treasure they wanted. As Key West became more popular and the price of real property increased, the cost of doing renovations or new construction has skyrocketed. This ocurred as a function of more city oversight of development plans and construction; higher priced development properties, increased construction costs from contractors and subcontractors, and higher materials cost as a result of inflation and or in the higher quality materials used, and delivery costs to Key West.
In 2009 I wrote "There are individual properties in Old Town and Casa Marina that I think a serious buyer should consider as an option to buying a house already completely 'done'." I need to update that observation by saying that today there just are not that many properties actively offered for sale in any price range. The stagnant market of 2008 - 2011 is long gone. The values from that era no longer exist. However, this new listing of 1316 Whalton Street is a genuine throwback buying opportunity with a price that relates back to what one could have paid six years ago for this highly sought after location.
GOOGLE MAP for an aerial perspective of the location which I mention because many locals don't even know where Whalton Street is located. Think of Whalton Street as an extension of Frances Street on the south side of Truman because that is what it is. It's a five minute walk to Higg's Beach, a three to five minute walk to most of the gyms and yoga studios, and even a short stroll to upper Duval Street.
CLICK HERE to view the Key West mls datasheet which let's us know there are two separate homes located on two adjacent lots which are offered for sale as one property which could be renovated into two separate homes or alternatively both houses could be razed, the lots combined into one new lot that measures 55' X 90' that is located in the X 500 flood zone. This property is a Short Sale meaning the asking price is less than the amount the seller owes to the lenders and that the sale is conditional on the lenders agreeing to accept the offer price. Since I wrote about this property six years ago, I have had numerous phone calls from prospective buyers who have seen the property pop up on non-Key West mls websites that gave the false impression the property was available for purchase. While it had been listed, it went under contract right away. I mention this because there will be a huge number of buyers who know this property and the value of this location. I would anticipate many offers being made on this property.
In my opinion the highest and best value of this property is to take down the old houses and build new. The photo immediately above was taken this morning on the front step of the existing house. You will note the breadth of the lot and the swaying palms in this neighborhood. The classic bungalow house next door to the north has a huge Royal Poinciana Tree with a canopy that drapes the north side of this lot. That tree will explode in May and June with millions of tiny red flowers that will make this lot pop with color. There are numerous houses within a one block radius of this home valued at over $1.5 and higher. The property behind this on Grinnell Street was featured in Architectural Digest a couple of years ago.
Preferred Properties Key West. Let me help you grab this real buying opportunity.