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.)

Affordable Key West Townhome - Short Sale

14 Merganser Lane - Key West Golf Club Community

A couple of years ago there were lots of townhomes for sale at the Key West Golf Club Community. Times have changed. New properties tend to go under contract quite soon after getting listed.

14 Merganser Lane is a two story two bedroom with one bath townhome that is now offered for sale at the asking price of $200,000. This property is a short sale. This unit has 780 sq ft of living space plus a screen enclosed rear porch.

The listing Realtor describes this property thus:

"Great Price, Great Location. This 2 bedroom, 1 bath cottage is located directly across the street from the smaller community pool. The larger backyard is at the end of the signature, 3 par tee box with a fabulous view of pure nature off the covered/screened back porch and the master bedroom. Short Sale subject to third party approval."

CLICK HERE to view the mls listing info. I have shown this property a couple of times. You can CLICK HERE to view photos I took of this unit. I have a friend that calls things that are alike "standard units". This is a standard unit. It is pretty much like all of the other townhomes at the golf course. The photos I took show a little wear and tear on the windows which will need to be replaced sometime in the future. Otherwise, a fresh coat of paint and some new carpeting will make this place look pretty spiffy.

The Key West Golf Club is really pretty. As soon as you enter the property all you see are hundreds of trees and shrubs that frame the streets and lanes. If you go far enough you get to see the small lakes. The townhomes almost look like a Disney movie set of small town America. Every time I drive there I am amazed at how inviting the place is.


If you are looking for an affordable place to call home in a really attractive and quiet setting and would like to see 14 Merganser Lane, or any other property in Key West, please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.

---

August 2010 Real Estate Sales Report - Key West

I did a quick search of real estate solds in Key West for the month of August 2010. There were 14 single family homes that sold during that time period. Three of those sales (21.4%) were bank owned homes; six (42.8%) were short sales. Five of the fourteen sales were priced over $500,000 which means that 64% of the sales were for homes priced under the $500,000 price point. Only one house sold in August above one million dollars. It sold for quite a bit more: $2,100,000. The average per sq ft sales price for a single family home in Key West in August 2010 was $319.

There were 26 single family home sales in 2009 compared to the 14 this year. Four of the 2009 sales (15%) were bank owned properties. Six (23%) were short sales. Interestingly, 9 (34.6%) of the single family sales in 2009 were for homes priced above $500,000 and two of those sales were for homes priced above $1,000,000. The average per sq ft sales price for a single family home in Key West in August 2009 was $315.

I then checked out the condo and townhome sales for August 2010. There were a total of 12 sales with an average sales price of $256 per sq ft. Seven (7) were bank owned units (58.3%) and 4 were short sales (33%). Only one low priced unit was neither a short sale nor bank owned. Just one property in Truman Annex sold over the $500,000 price point. The other 11 were below that mark.

During the same period in 2009 there were 13 sales (one more than in 2010). The average price per sq ft in 2009 was $264 or $8 per sq ft higher than this year. Eight (8) bank owned condos (61.5%) and only 1 unit identified as a short sale (7.6%) were sold in August 2009.

It is obvious that the 2010 sales compared to 2009 are fewer in number. Prices are up on a per sq ft basis for single family homes, but prices are down for condos compared to 2009. We are not seeing actual closed sales for higher end properties. There are still buyers for the nicer and more expensive homes. They are using restraint and not rushing to buy. Some higher priced properties have recently gone under contract and are awaiting closing. This is a Buyers’ Market and sellers better understand that they need to meet the market or their properties will not sell.

The photo at the top of today's blog shows a over-turned building in Key West after a hurricane in October 1910. The world must have seemed pretty upside down at that moment. I'll bet that the building got up-righted and that the perplexed fellow in the photograph got to live a decent life after that sad event. We've got a lot of unpleasantness in our economy right how. Things will work out and the things that are upside down will improve.

Quit Your Job. Move to Key West. Open a Hamburger Joint

I went to Hawaii in 1977 and got a brainstorm of buying a McDonald's franchise in Honolulu. I was absolutely amazed at how much business the McDonald's near Waikiki Beach did. I immediately understood the value of a good location, an inexpensive product, and a potentially huge number of buyers. I got over Hawaii idea real quick. Nothing like feeling like a second class citizen in the United States.

Jimmy Buffet wrong a song about cheese burgers in paradise, except his homage referred to the now defunct lunch counter at Dennis Pharmacy on United and Simonton Streets. I loved that place just like Jimmy. It was caught in a time warp with the curved counters and its pedestrian menu. Lots of locals and cheap tourists went there for lunch. Prices were cheap and the food was pretty good. You can't make money in Key West by selling cheap food at cheap prices, however. The pharmacy closed a about five years ago. The building was remodeled and is now a granite clad bank. The place lost all of its character. And there is one less place to find a cheap hamburger in Paradise.

One place I would have loved to go to no longer exists. It was the Charcoal Hut that was located next door to the STRAND Theatre on Duval Street. The photos below show the Charcoal Hut as it appeared in the 1960s.

Can you imagine a real hamburger for $.35 in Key West - today ?

The cute hamburger joints of 50 years ago are gone. But you can still buy a
Cheese Burger in Paradise. Read on.

217 Duval Street - Old Town - Key West

Just listed, but not by me, the Business Opportunity to run a restaurant / bar on the hottest block of Duval Street in Old Town Key West. The listing Realtor describes this business opportunity this way:

"Great opportunity in the 200 block of world famous Duval Street to take advantage of 157 seat Restaurant/ Bar with attractive long term lease in place, and extensive build-out of historic two story building with phenomenal built in foot traffic. (SRX Liquor License in place.) Highly successful high volume operation, ready to take to the next level. Trade name does not convey."

The Key West Chamber of Commerce reports that Key West had 3,322,555 visitors in 2009 CLICK HERE. You can bet your bottom dollar that nearly every one of those visitors walked by the Cheese Burger joint at 217 Duval Street at least once during their visit. I write this confidently as 217 Duval Street is located just a couple of doors south of the World Famous Sloppy Joes and across the street from Ricks. The 100 to 600 blocks of Duval Street are the money blocks. Day trippers (boat people for the most part but there are some people who drive down from Miami for a few hours in Key West) do most of their walking and shopping in those six blocks. Visitors who stay several days can be seen repeatedly doing the Duval Crawl because they don't know any better. (Seriously.) Rents are high but so are the revenues that this dynamic location provides.

The 35 cent charcoal burgers of 50 years ago have been replaced by $10.95 cheese burgers. The locations are only a few blocks apart but the world is much different now than then. The weather and relaxed lifestyle are a constant, and you can 't put a price tag on that.

If you are looking to buy a place in Key West, please consider calling me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. Unlike Hawaii, Key West does not have any volcanoes. Our beaches are not as sandy, sad to say. But everybody is made to feel welcome in Key West. You do not have to be born here to belong. Quit your job and move to Key West.

A Modest Proposal - An Eyebrow "Lift" in Key West

405 Frances Street as it appeared in 1965

It was built in 1889 and look like this when it sold in 2009 for $216,500

405 Frances Street looked undressed in June 2010

New "skin" is being added to the old but improved frame

There are many reasons people fall in love with Key West. One of those is the distinctive architecture. I have watched the renovation of numerous homes since I first came to Key West 26 years ago. Some are done by weekend warriors; some by fast-buck artists; and some are done by craftsmen. A little while back I posted a photo of the previously forlorn eyebrow house (above) at 405 Frances Street. I have been going by the place over the past few months and photographing the progress. I am inspired by the transformation. I can't wait to see the finished product.

I got to show the Frances Street house a few times before it was sold. The listing agent would not go inside. The place was filled with years of accumulated crap piled high. The smell was over-powering. People were living inside this hell hole. It was so sad. And scary. Buyers were so turned off that they would not give the place a second thought. Except one buyer finally did. He paid $216,500. The place looked small and unfixable. Now it is beginning to look quite large and impressive.

I mention 405 Frances Street because it is illustrative of many unappreciated houses in Old Town that have been neglected for far too many years. In many cases the owners moved out long ago and left the old house to renters. And in many of those instances no improvements have been made for a long time. When owners don't care, tenants don't care either. It becomes a vicious cycle. Bad houses often depress other houses in the neighborhood.

I found two Key West eyebrow houses that need "eyebrow" lifts to bring them into the 21st Century.

1016 James Street is located near the Historic Key West Seaport. I've shown this place a few times. It's a mess. CLICK HERE to checkout the mls listing info. The listing Realtor calls the place a diamond in the rough. We are both right in our descriptions. If you gut this place and jack up the building to pour new piers and replace joists and other structural members that need fixing, you will have a sturdy new foundation upon which to reinvigorate a classic Key West eyebrow house. Forget about all that is wrong with the current place, because all of that will be gone. It will get transported to the dump. The location will remain. What happens after that is between the owner, the architect, the contractor, and HARC. The asking price is $325,000.

What you cannot see from the mls listing photos is the backyard and the potential to change this house for the better. The yard is 3404 sq ft (40' x 80'). The rear of the property is on Thompson Lane-a small lane with only a few houses that get access from either Frances Street or Grinnell Street. The back of the house has an addition that could be removed and replaced with a new two story addition that could make the entire house move functional. There are two "out" buildings on the lot as well. Key West regulations may permit the renovation of one into a guest cottage or maybe a pool house. There is no pool now, but there is room for one. Or maybe room for covered off street parking.

1016 James Street photographed by the WPA in the 1930s (above)

1016 James Street as it appears in August 2o1o

The "addition" should be removed and rebuilt. Still room for a pool and guest cottage.

House behind on Thompson Lane added covered parking, bricked pavers, and a white fence

The house at 716 Thomas Street (below) was recently listed. CLICK HERE to checkout the listing information on this two story eyebrow house. This house has 1896 sq ft of living space an sits on a 3136 sq ft lot ( 32' x 98'). That means this house has room for a pool as well. 716 Thomas Street is offered at $399,000.

716 Thomas Street as it appeared in 1965

716 Thomas Street in Old Town Key West August 2010

A few years ago you would hear the din of power saws and nail guns all over Old Town. It's much quieter these days. There are not as many construction jobs going on. Builders are still building, but the number of jobs has lessened. I think now is a good time to do a project house because there is competition for the work. And whether you want to do an eyebrow house, a cigar maker's cottage, or a grand conch home, there are many good properties to chose from.

If you would like to see 1016 James Street, 716 Thomas Street, or any other house in Key West, please consider calling me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida.

523 Elizabeth Street - Old Town - Key West

523 Elizabeth Street (ca 1874) as it appeared in 1965

523 Elizabeth Street as it appears in 2010

Just listed, but not by me, 523 Elizabeth Street in Old Town Key West. This place was on the market before. Same house; same price; a new Realtor; a tightening market. It did not sell last time at the asking price. Will it sell now?

This is how the listing Realtor describes this property:

" When location matters look no further. Situated on Elizabeth between Southard and Fleming, the perfect Old Town Key West address! History abounds in this historic home with great detail taken to restore period details. Currently configured as a duplex, but with little effort could be turned into a spacious 4 or 5 bedroom single family residence. 11 foot ceilings, beautiful restored crown moldings and perfect Dade County Pine walls are just a few of the details that grace this Historic gem. Final touches could be made to the back yard and pool area to create a tropical oasis. One of the best priced homes in this area of old town for its size! Two balconies with beautiful foliage to relax and off street parking complete this package."

Off street parking

523 Elizabeth Street was built circa 1874. (See the black and white above photo taken in 1965 before the white paint was stripped). The house is a 2125 sq ft and sits on 4950 sq ft lot (45' x 110') just two blocks from Duval Street and three blocks from the Historic Key West Seaport. This block of Elizabeth is one of the more eclectic blocks in Key West-and we have man of them. The third oldest home on the island is across the street and down a couple of houses. The former Mayor of Key West lives a couple of doors away. A large house across the street is owned by a local architect and contractor. I say this kindly: that house is leftover hippie and I love it. There are fancy redos as well. They all blend together in the end. Two giant Royal Poinciana Trees frame 523 Elizabeth. A giant orchid tree is located across the street. The whole block is green and evokes a feeling of laid back comfort.

The Groovy Pad across the street

This is a large house. Maybe that's why it got cut up and made into a duplex. The pool in the rear was allowed to disintegrate and the yard went to hell. The exterior was all spiffed up and the interiors were very recently remodeled. There is one very large tree that appears to be growing into the right rear side of this house CLICK HERE. It needs an exorcism.

The listing Realtor got it right in suggesting that this "duplex" could be reconfigured back into a single family. I don't know why that didn't happen when the recent renovations were being done. The good thing is that this house is solid and symmetrical. A recent addition or renovation at the downstairs rear needs to be undone in my opining. That space needs reconfigured and opened out to the pool. The current usage just misses the mark. The lot is enormous by Old Town standards. I believe building code would permit renovation of the current pool. (It is built inside the current building code setbacks. Keeping the same location expands the other usage on the lot.) It needs it as it is falling apart. A huge tree has creepy vines growing down into the pool. Conditions like this scare many buyers. They shouldn't. We have lots of very capable architects, contractors, and pool installation companies that can "fix" bad planning concepts, repair or replace rooms from hell, and turn an eyesore into a thing of beauty.

The pool needs a little work!

CLICK HERE to checkout the mls listing data sheet and to view listing photos. I took some photos as well. CLICK HERE to see my pics-interior shots were taken last year.

There are fewer and fewer big houses offered for sale in Key West that are priced under a million dollars. 523 Elizabeth is being offered at $875,000. True, if you bought this house and did some of the things the listing Realtor and I suggest, your cost basis in this property would be higher. But you would end up with one very large house on a very large lot on a great (and eclectic) block in Old Town. This place is worth a look if you are seeking a big house. If you want income property, look as well. Keep the current configuration and use one unit for yourself and rent out the other.

If you would like to see 523 Elizabeth Street please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. Our office is Exclusive Lower Florida Keys affiliate of Christie's Great Estates.

707 Washington - Short Sale - Casa Marina Area - Key West

I have written about the house at 707 Washington Street for over two years. The places just won't sell. It is a short sale and has been under contract several times. It went back on the market yesterday. It is beginning to play like a broken record. Last time I saw it pop up in the mls I thought of Mr. Bill saying "OHH NOOO !!! And so it is again. Read on.

707 Washington Street - Casa Marina Area - Back on Market as Short Sale

707 Washington Street - Offered at $1,049,000 as a Short Sale

701 Washington Street - neighbor immediately to the west

709 Washington Street - neighbor immediately to the east

And then I decided I must remind my Readers know about this buying opportunity.

This property is technically a "remodel" since the original duplex located on the huge lot was never officially demolished. CLICK HERE to see 707 Washington as it appeared in 1965. But in reality the two buildings that occupy the space are new from foundation up to the tippy-top of the roofs. The buildings were designed by local noted architect Tom Pope. He, however, did not design the interiors. The interiors were, in my opinion, ill conceived. The rooms as presently built just don't work. There are big spaces and also small bedrooms. The kitchen is very large but one owner removed all the appliances. So a new buyer is going to have to spend thousands of extra dollars replacing appliances which should never have been removed. The pool is quite nice but there is little outdoor space to lounge and recreate.

My suggestion: gut the interior and rebuild. This time use a good space designer and decorator. Redo the pool area as well. This house is huge. The pool area was poorly designed. The thing that works best in Key West is to have living areas that open out to the pool and garden so that the transition from inside to outside living is almost seamless. The current configuration is more that of a box with a pool located down a clumsy set of stairs.

The house at 707 Washington is a legal duplex. But for all intents and purposes it is really a single family house with an attached two-story guesthouse or caretakers house. I would propose that the new owner reconfigure the guest quarters into a second master suite that would occupy both first and second floors of this wing. All of the ground floor in the main house needs reconfigured as well. The rear wall at the back of the house should be removed and the space re-invented into an open air garden room overlooking the pool.

The houses on either side are just beautiful. So is the mega-house across the street. Louie's Backyard Restaurant and the nearby Doggie Beach is a block to the south. The Casa Marina Resort and Higgs Beach are a five minute walk to the south. And Duval Street is only a five minute walk top the west.

I am not panning this house. I think this place is great. The interiors suck. Sorry to Sluggo or to whoever designed the inside and pool area. The houses as currently configured have 3257 sq ft of living space and sit on a 5300 sq ft lot on one hell of a Casa Marina location. The asking price is just $995,000. This is a Short Sale. There are very few houses in Key West that have this kind of space with the quality of exterior design and construction. This could be a great deal for a buyer that wants a project house. CLICK HERE to see the mls listing and view photos.

If you would like to schedule a showing please contact me, Gary Thomas, 305-766-2642 or send me an e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West Florida. Our office is the exclusive Lower Florida Keys affiliate of Christie's Great Estates.