Island Fever

I received an email this morning from Guillermo Orozco my friend and Key West residential designer that referred me to an article in Coastal Living Magazine. CLICK HERE to read the article. The article is only a couple of paragraphs long. Read it.

The house is located on a quiet little lane off Fleming Street. You'd miss it if you were not looking for it. In another blog CLICK HERE I wrote about the joys of living on one of Key West's lanes. And even though I did not talk to Guillermo about the owners (and I do not know them) I have a pretty good idea why they chose this particular house and location. I think it was the seclusion and quietness of the location.

The owners hired Guillermo to re-design the home and gardens and enlisted New York interior designer Zina Glazebrook to help. Guillermo added special touches such as the outdoor shower and poolside bath and laundry that are unique to Key West. And he designed the custom made kitchen cabinets and created the inviting master bath shown in the article.

The above pics show two shots of the home and pool areas. More photos are found in the article.

If you are looking for a place to get away from the noise of New York (or anywhere else), CLICK HERE to checkout all of the residential properties currently for sale in the Key West area. And please give me a call if you see something that interests you. 1-305-766-2642.

Dog Day Afternoon

No I didn't rob a bank. And that is not a picture of me.

It is a beautiful Saturday afternoon in Key West. I just came inside from the pool and decided I wanted to share a couple more thoughts about the joy of living in Key West.

First, we have the best dogs anywhere. They can belly up to the bar in almost any drinking establishment in town. And many of them can even ride a bike or scooter. When I first came to visit Key West back in 1984 dogs could even take a nap in the streets. Those days are gone, I'm afraid. But the afternoons still belong to the dogs.

Second, we have cats. We have more cats per capita than anywhere in the United States--I'm sure of that. People that don't own cats have cats. There are everywhere. The Hemingway House is famous for its cats. My street is famous for its number of cats. And I don't live anywhere near the Hemingway House.

Third, we have chickens. CBS News and other media have reported on our chickens. They are famous by now. We even have a chicken store on upper Duval Street. Yesterday around 10 AM I saw a tourist heading out of town. I'll put this mildly, he had chicken**** all over his rental car. He must have parked his car under a tree. (Chickens spend the nights in trees to avoid the cats.)

Fourth, I have never seen a dead chicken. But I have seen many fat cats.

Speaking of fat cats, if you are one and want to buy a vacation home in Key West, you can CLICK HERE to search all of the homes available in Key West. And then call me at 1-305-766-2642 to get more information or to set up a showing.

Windstorm Insurance Rate Reduction?

According to the Key West Citizen article on March 21st the Citizens Property Insurance Corp. will cut wind premiums for Monroe County customers, even beyond what the state had mandated, according to the Office of Insurance Regulation. CLICK HERE to read the article.

One of the factors that has been depressing the real estate market in the Keys has been the unprecedented explosion in windstorm insurance rates. People in the Keys felt that they were being unfairly targeted by the windstorm insurance provider because the rates here were disproportionately higher. Various groups throughout the state petitioned the Florida legislature and politicians from both sides of the aisle listened. Windstorm insurance reform was the hottest topic in the 2006 Florida elections.

So it looks like there is some progress. At a recent Key West Association of Realtors luncheon there was discussion regarding rate decrease, but the lobbyist for FIRM pledged not to stop with this slight victory. The fight is not over. More reform is being called for.

Some local banks have taken action to help provide some relief from the high price of wind insurance. You may be able to negotiate the amount of insurance required which in turn could reduce the rate charged. So it is a good idea to meet with several local lenders if you are in the market to purchase real property in the Keys in the near future. The interest rate a lender charges is not the only factor you should consider when purchasing financing a piece of real estate.

If you do buy a home from me, you could have a cute little mailbox like the one pictured above to signal your arrival in Paradise. Not even the mail is dull in Key West.

Casa Marina Redux

I wrote a blog in February comparing prices on some large homes in the Casa Marina Area . CLICK HERE My faith in my perception amazes even me sometimes.

Yesterday one of the houses I mentioned in that blog, the one previously owned by author Philip Caputo, was just listed for sale at the offering price of $5.75 million--CLICK HERE for more details. You will recall that the present owner purchased this home in July 2006 for the price of $3.4 miilion. The new price is $5.75 million. The house has been undergoing a major renovation of the buildings and grounds including cosmetic, structural and landscaping. The home has 5748 square feet of living space according to the official tax records. So the house is priced at $1,000.35 per square foot. The house occupies one-half of a large city block just a short distance from the Atlantic Ocean. I went by the property again this morning. It looks just beautiful. And for that price it should.

The listing broker made this comment about the house in the mls "This magnificent property brings Palm Beach to Key West." It does. This house is not a typical Key West "conch house". It is anything but. It is grand and magnificent. And I think the price is a steel.

But if you are looking for a home that is a tad bit more affordable, please CLICK HERE to use our mls search feature to see all current homes and condos for sale in the Key West area. And if you find something that really interests you, please give me a call for more information. 1-305-766-2642.














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Harpoon Harry's--On the Waterfront

Harpoon Harry's is to be Auctioned on March 31st.

One way to sell real estate is to auction it. In some auctions, the seller places a "reserved price" or a price below which he will not sell. Other auctions are absolute, meaning the seller will sell to the highest bidder without reservation.

There are two things that make this particular auction interesting to me. First, the property has an excellent location and an excellent reputation. All kidding aside about the flood pic above showing the property right after Hurricane Wilma, the property is located right at the foot of the historic Key West Seaport. Turtle Krals and The Half-Shell Raw Bar are located just across the street and really on the waterfront. The entire waterfront area is undergoing a massive renovation. CLICK HERE to see my post regarding the Harbor House Condominiums just one block to the west. So I view this property as a Prime Real Estate Investment. CLICK HERE for full auction details.

Second, the seller is not only attempting to sell the restaurant, but also 4 beautiful new single family homes located in the Bahama Village area of Key West. The houses are on Terry Lane and have views of the Key West Lighthouse. I think they were priced too high per square foot and that the price has deterred price conscious buyers.

So it will be interesting to see how the auction goes.

Is the glass half full or half empty?

I had two conversations last Friday regarding Key West's current real estate market. One was positive and the other negative. I thought I would share those perspectives with you.

Bob Cardenas is a realtor with a company that sells many of the homes on Sunset Key including this one CLICK HERE. That is the island just west of Mallory Square where the nightly sunset celebration occurs in Key West. Most of the homes there are priced in excess of $2 million. And Bob usually represents the buy or seller of every property out there. He was the realtor who sold the $5.8 million home referenced above.

He said his buyers held back a bit last year thinking that the market would take a dip and that they would then buy at a lower price. They got it wrong, he said. Bob said his niche market has actually increased since last year. Bob mentioned that he had just put another doozy under contract that day. CLICK HERE to see the house that is under contract for very close to the asking price. Bob wasn't boasting about the sale and said his activity has been very brisk all season. I pointed out that his niche market is different from the rest of Key West. He agreed to some extent, but he said he felt too many Realtors are bemoaning the current market and that the negative comments abut the market are helping to keep it down.

Bob said if Key West gets through the summer hurricane season without any serious storms that he thinks the market will vigorously rebound this coming fall. Let's hope he is right.

That same day I talked with a local real estate investor who owns about 20 properties (mostly single family homes) in Key West--most of which are listed for sale at ridiculously high prices. He owns most of the properties in partnership with other investors. And he acquired most of the properties over the past four years or so--at the height of the Key West real estate boom.

Surprisingly none of his properties has sold during the past 18 months. One of his houses is a single family that he has not made a mortgage payment on since Hurricane Wilma (October 2005). The house is rented so he is getting income from the property, but he is not servicing the debt. He said he called the out of state lender and asked to speak to someone about a workout. He said the lender told him not to worry, that the lender was not going to foreclose. The lender offered to restructure the loan and add all arrearages to the loan which could be paid in a lump sum when the house sells.

That reminded me of two similar situations that I had heard of. Another investor bought two different properties. One was a single family home in Old Town and financed it through one of the national lenders that does lots of television advertising. When his world turned upside down, he tried to do a workout with the lender. Impossible. The company is so big, they lost him in the mix. He hasn't made a payment in over a year. And the lender still has not started to foreclose.

He also bought a commercial development project which he proceeded to royally mess up. (I could use more colorful language on this deal!) He had a first mortgage on part of the property from a national bank and a first mortgage on another part of the property from the prior owner (purchase money mortgage on a part of the project, but not all). He had some retained un-mortgaged interest in an additional parcel that was integral to the entire development. The banker responsible for the project has continued to fund interest payments out of the loan reserve established to pay construction costs. So the lender has avoided declaring the loan in default. Then the purchase money lender foreclosed it's mortgage on its collateral. The borrower walked away, but the property is a mess.

Getting money to buy property is Key West has never been difficult. Maybe it was too easy. And I think maybe too many lenders have yet to recognize the extent of the mess that is out there. I used to do commercial loan workouts and I know how bankers operate. They are great at making loans and terrible at collecting them.

I guess the answer to the question posed in the title to today's blog depends on who you talk to. If you are an optimist like Bob the realtor, you see good things heading your way. And if you are like the real estate investor who can't sell his over-priced homes or if you are like the banker who refuses to acknowledge an impending loss, the end is near.

As for me, I think this is a buying opportunity. CLICK HERE to preview all current MLS Listings in the Lower Florida Keys.

Casa Marina Residences

I have mentioned the Casa Marina area several times in my blog. It is the neighborhood near the historic Casa Marina Hotel. Many of the homes in the area were built post World War II, but there are several large old homes that are over a hundred years old as well. The streets are wider and less busy than Old Town. Some of the streets have paved sidewalks and others do not. The building lots are generally much larger than most of the lots in Old Town. There seems to be a greater variety and more trees than Old Town as well. And there certainly are not as many businesses or tourists.

Casa Marina Residences is a new and ultra-exclusive intimate enclave of only 12 new luxury villas nestled between the Atlantic Ocean and Casa Marina Resort & Beach Club. Each of the 3 bedroom 3 bath home will enjoy luxury amenities including individual elevators, private plunge pools, garden patio, spacious balconies, covered parking & wired for state of the art technology. Owners will enjoy a state of the art fitness club, tranquil destination spa, tennis, private beach access, tropical pools, onsite water sports & multiple dining opportunities. Water front units available ranging from $2.5 million - $3.5 million. (Pre-Construction Prices.) CLICK HERE for information and photos of the new ocean front development.

I think this development will be just right for a second home owner who wants all the comfort of living in an exclusive resort type atmosphere with amenities galore but also with the privacy of individual home ownership. Only four units have been released for pre-sales. Look for the prices to escalate as construction continues. This will be a winner. Mark my words. Call me at 1-305-766-2642 for more information.

HARBOR HOUSE -- KEY WEST

There was a coming out party last night at the San Carlos Theatre. The elite of Key West turned out for the event which featured a private concert by Cuban jazz legend Arturo Sandoval. But the real star of the evening was the unveiling of the plans for the much awaited Harbor House--the newest incarnation of the previously troubled Watermark Project.

Harbor House is a new development of 32 three story private residences located at the historic Key West Seaport. Each unit is over 2000 square feet and has every amenity you would expect. The exteriors are graced by two-story porches both in front and back, with features characteristic of past historic homes of Old Key West. The interiors are classic spaces with period-inspired design elements such as viewing towers and Queen Anne turrets that add authentic flavor. There are 12 floor plans to choose from along with premium options. The units are priced between $1,965,000 to $3,120,000 depending upon size and location. CLICK HERE for a down loadable/printable brochure.

Harbor House is to be located on the site of the old Jabour Trailer Park. It is about a three block walk to the STEAM PLANT CONDOS currently being constructed at the foot of Caroline and Grinnell Streets--also at the easternmost edge of the historic seaport.

Apples and Oranges

I just received my April 2007 issue of Architectural Digest. On Page 140 of my issue (South Florida) there is a picture of a current listing of a Key West water view home priced at $5.995 million. The house was featured in AD in October 2001.

I mention this property because it is referenced in a paid advertising section disguised as an "Editorial Feature" of fine estates around the world. Realtors pay a fee to show their listings in this section. Nothing wrong with it. But the way it is presented is misleading in my opinion.

Other fine homes and estates are similarly featured each month. So the reader can do some comparison shopping in various price ranges around the globe. Other magazines have similar features and I think it is very interesting to compare what you can buck can buy in Key West as opposed to some other destination.

I will bet you dollars to donuts that you could almost buy an entire town in some area of Alabama for $5.995 million. But then who would want that? You may be able to buy tony townhouse in Manhattan for the price, but the price you pay to live in Manhattan is more dear considering all the people and all the pressure.

CLICK HERE to see a similarly priced home in Palm Springs, California. And CLICH HERE to see the Key West home in the current issue of Architectural Digest. Or CLICK HERE to do your own search of all Key West homes.

For the life of me I can't imagine why anyone would want to live in Manhattan, Alabama, of the desert. But I can give you tons of reasons why you should consider living in Key West.

One final point of note: something is going on in town. All of a sudden there is a flourish of real estate activity in Key West. There are 24 days left of prime selling time before the serious buyers go away until next season. The number of price reductions on existing listings has picked up. Sellers are getting serious about setting rational asking prices. And some buyers are responding by writing contracts. Properties in all price ranges are going under contract each day. The number of of listings still exceeds the demand, but the good news is that some properties are starting to sell.

Gorilla My Dream

Remember the Connie Frances movie Where the Boys Are? They are in Key West this month for Spring Break. Town is divided into four distinct categories: typical tourists that take up lots of space on sidewalks, people with money who tend to hang together, the breakers, and the locals --we tend to avoid Duval and all other tourist places like the plague (there so many people here right now!!!).

Our weather is so fair that the breakers have to dress for the beach all the time: meaning they hardly dress at all. If you are a father or mother with a son or daughter in Key West rest assured that your kid will return home with an all over tan. Without exception!

Tyler who works the morning shift at my gym arrived at work this morning at 6:00 AM. He just got off his other real job at one of the Duval Street bars. He said the breakers were fairly nice last night. He didn't have to 86 anybody. But, he said, they didn't leave until closing time which is 4:00 AM.

So you can see why I included the pics above. The breakers memories of Key West may be somewhat flawed. But they will surely recall that they had a great time.