Work Begins on Sarasota Quay – Downtown Sarasota Real Estate

June 2, 2018 by

A new Sarasota Quay is underway. Finally.

Long-awaited bayfront development of residential, hotel and business units breaks ground.

Sarasota Quay

The developer’s goal is creating a place that will please the public and engage the waterfront. Those are some of the intangible goals of GreenPointe Communities LLC.

On Wednesday afternoon under mostly blue skies, the Jacksonville-based company staged an infrastructure groundbreaking ceremony at the 15-acre Quay Sarasota Waterfront District site with city commissioners and the mayor, Planning Board members, Booker High School students and others.

Before GreenPointe president Grady Miars addressed the gathering, he described the project in a Herald-Tribune interview.

The renovation and repurposing of the historic 1925 Belle Haven Apartment building on the site is a pivotal piece of the project, which is entitled to 695 residential units, 175 hotel rooms, 38,972 square feet of office space and 189,050 square feet of commercial space. The overall project represents a $1 billion investment from GreenPointe and other investors.

The Belle Haven, Miars said, is “considered to be the crown jewel of the development.”

“Right now, we’ve been actively working on the interior components, making sure that it’s suitable and stable, and then we’re going to refurbish it,” he said.

Sarasota City Manager Tom Barwin called the Belle Haven “one of the greatest buildings that has ever graced the bayfront.”

Initially, GreenPointe offices will be in the refurbished Belle Haven. Ultimately, though, the idea is to turn the structure into the central piece of the Quay, Miars said, “so it will be part of our placemaking effort.”

The project also calls for a public park leading to the waterfront, where docks will be available.

“What you’ll see in our development and in our infrastructure is it’s going to invite the public in to be able to utilize not only our central Quay and the facilities there, the retail, and also engage to the waterfront,” Miars said. “We feel that is very important.”

Rick Harcrow, GreenPointe’s regional president, said, “We dedicated ourselves to creating a special place.”

The company is coordinating plans with The Bay project directly to the north, the Sasaki design team and city officials. “We’re very much in support of what’s happening to our north,” he said of the bayfront redevelopment effort. “What’s happening around us has really evolved and has come a long way.”

Barwin appreciates the fact that the two major projects are coming to life together. “We’re especially excited it’s (the Quay) moving in tandem with the Bay,” he said.

Vertical construction is scheduled to begin this fall on a 73-unit, 18-story condominium tower called The Grande — complete with a restaurant. That work is expected to last two years.

If the national economy continues to perform well, Miars anticipates a five- to seven-year construction schedule for the entire project.

“Our expectations for the project is really what we set out for when we started in 2014,” Miars said, “to acquire a piece of land in the city of Sarasota in an area ripe for redevelopment and be able to intertwine ourselves into the fabric of Sarasota. Sarasota has so many great things that are going on, from the arts, the culture and the waterfront.

“This is one of those opportunities where we can seamlessly bridge in between those — and ultimately into downtown.”

City Commissioner Shelli Freeland Eddie applauded GreenPointe for seeking “community input at all stages of the project.”

She proposed that the company incorporate nearby Booker High School engineering and art students into the project in a shadowing program. Executives agreed immediately, she said in another interview. The collaboration will lead to job opportunities, she said. “We want to keep our best and brightest in our community.”

Pride plays a role, too. When those participating students drive by the Quay Sarasota in the future, they can say, “I had a part in that,” Freeland Eddie said.

Redevelopment plans for the 15-acre bayfront property began some 15 years ago. A few years after acquiring the land, the Irish investors leveled the old Sarasota Quay condo building in 2007. Bankruptcy and legal wrangling ended that effort and the site sat empty for years.

GreenPointe purchased the property in 2014 and now the first groundbreaking has occurred. Another will be held just ahead of vertical construction.

Sarasota Herald Tribune, May 23, 2018

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota New Construction Tagged With: , , , ,

Bayfront Group Refines Concept Plans

May 24, 2018 by

bayfront projectA singular vision for redeveloping the bayfront near downtown is coming into focus

Just three days after The Bay Sarasota stopped collecting surveys on a series of concepts for redeveloping more than 50 acres of city-owned waterfront land, the planning group was busy dissecting the information the public had submitted.

Based on more than 1,000 surveys — about two-thirds of the total results — some community priorities had already become clear. So, too, had some areas of public concern.

The feedback, both positive and negative, will inform the final master plan. As The Bay tries to build support among residents and city officials in pursuit of an ambitious bayfront vision, the group continues to express confidence that an actionable plan is coming together.

That’s not to say there are no questions regarding the path The Bay is taking. More than four years after Sarasota Bayfront 20:20 formed as a grassroots coalition to redevelop the property, residents have spoken out against plans to replace the Van Wezel Performing Arts Hall and reconfigure the 10th Street Boat Ramp. Not everyone is behind the group’s broader approach to putting together a plan.

At this point, The Bay isn’t looking for unanimous support. Bill Waddill, The Bay’s managing director, said the positive responses have largely outweighed the criticisms — but the group will address all the input it receives as it refines its plans.

“We’re going to have debate and disagreement,” Waddill said. “People raise issues and concerns. That’s fine. That’s healthy. That’s what happens in these processes — it’s now getting more and more real.”

On Tuesday, The Bay held a board meeting to discuss the latest stage of the process. After presenting three concept plans in April, the group is working with the planning firm Sasaki to consolidate the survey results into a single plan.

The surveys provided insight into some community preferences. Some examples: About 90% of respondents said they liked the waterfront walking paths included in each plan. Between 70% and 75% of the public endorsed the outdoor performance spaces in each concept. Nearly 80% liked the pedestrian bridges included in one plan.

The bayfront planners will use the Bride the Divide concept as a starting point, but forthcoming changes will reflect public input.

Overall, the public ranked the three plans relatively closely. The leading concept was “Bridge the Divide,” which featured the pedestrian bridges, a performing arts center spanning the canal near 10th Street and an emphasis on green space. As a result, Sasaki plans to use that concept as a starting point for developing a final plan.

Already, the group has identified some changes it wants to make based on public input. They include reconfiguring the proposed performance arts center to preserve views of the bay, creating more opportunities to activate the waterfront and exploring options for honoring the Van Wezel building.

Before the end of the month, Sasaki planners intend to return to the city with more revisions — including more information about expenses and a possible governance setup for the land.

“What you’ll see next won’t necessarily look like the ‘Bridge the Divide’ scheme,” said Gina Ford, Sasaki’s lead designer for the project. “We’re trying to morph it and integrate other things the community said it liked.”

Constructive criticism

As the plans for the bayfront become more detailed, so do the criticisms. One of the challenges The Bay faces is deciding how to respond to individual concerns.

In some cases, the group is willing to admit it’s missing the mark. Some of the strongest negative responses to the concept plans were tied to how they would affect boat access to the water. A.G. Lafley, chairman of the Sarasota Bayfront Planning Organization, encouraged the group to make a better effort to reach out to local boaters and to research what’s made other boat ramps successful.

“We have a community that’s fairly large that we have to get connected to and understand,” Lafley said.

The Bay is handling a push to preserve the Van Wezel slightly differently. About 17% of the survey responses reviewed so far offered comments about the Van Wezel. A majority expressed a desire to keep the building.

The planning group has repeatedly said its proposal for a new performing arts hall reflects the Van Wezel’s belief the existing venue is operationally limiting. At Tuesday’s meeting, The Bay members pointed out those pushing hard for the preservation of the Van Wezel were a vocal minority of respondents.

Still, the group has always expressed an intent to honor the Van Wezel in some form, no matter what happens to the current structure. Based on the results, the group committed to seriously explore the opportunities to repurpose the Van Wezel building. Waddill also stressed that, no matter what decision the city came to, it would be a long time before a new performing arts hall could even be built,  which means there’s plenty of time to carefully consider the Van Wezel’s future.

“It’s a series of decisions that will happen over years,” Waddill said.

In some cases, the planning group is standing behind its expertise despite some negative feedback. Surveys showed 36% of the public disliked the proposal to include a waterfront drive cutting through the green space in the Bridge the Divide scheme. Sasaki planners said this was an important feature for circulation during major events, for access for older residents and to connect the park to the fabric of the city.

The planners said they wanted to communicate to the public that the park driveway would be a small road that would not disrupt the green space with an overwhelming urban feeling.

“We can design it to be a low-speed, beautiful park experience,” Ford said.

There are some critics of the overall scope of The Bay’s work thus far. At Tuesday’s Downtown Improvement District meeting, board member and developer Mark Kauffman said he was upset about the inclusion of restaurants and parkland in the concept plans. He thought the bayfront redevelopment should be focused on cultural institutions, and he feared too many different ideas were being incorporated.

“These people tried to do everything for everybody,” Kauffman said.

Waddill said it’s easy to lose sight of just how much land is available. By way of comparison, he points to the area around the Straz Center for the Performing Arts in Tampa. That hub, which includes multiple theaters, the Tampa Museum of Art, Glazer Children’s Museum, Curtis Hixon Waterfront Park and a 932-space parking garage, is 23 acres.

He understands why Kauffman and others have the instinct to advocate for a more focused vision, whether it’s for a district celebrating the arts or for public parkland. He wants to assure the public that there’s plenty of land to do both, with room to spare.

“I’ve had some questions about why it seems like we’re trying to do a lot in this space,” Waddill said. “The answer is: We have 53 acres.”

 

Sarasota Observer, May 3, 2018

Filed Under: Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota New Construction Tagged With: , ,

Florida Real Estate Market Healthy but Challenged

May 19, 2018 by

Florida Real EstateFlorida Home Prices Up, Inventory Down and Interest Rates are Iffy.

The Florida real estate industry is healthy, though several thorny challenges confront residential sales, one of the nation’s leading economists told a gathering of about 80 agents and brokers Wednesday morning.

Lawrence Yun, chief economist and senior vice president of the National Association of Realtors, covered the proverbial waterfront during his presentation at the 12th annual Global Conference, a production of the Realtor Association of Sarasota and Manatee and the Global Business Council held at RASM’s Sarasota headquarters.

The daylong conference focused on the international real estate market, though Yun incorporated many domestic points in his presentation, “Economic and Real Estate Market Outlook.”

Foreign Buyers and Florida

On the tax reform law, “We’ll have to wait and see whether this impacts home buying in the future or not,” Yun said. But he echoed a sentiment expressed by many: The Florida market will be a “big beneficiary of net migration” from Americans fleeing such high-tax states as New York and New Jersey as the tax law chews into their income-tax deductions. “We’re already seeing that.”

Last year, foreign buyers bought $23.8 billion in Florida real estate, more than double the figure from a decade ago. Seventy-three percent of those 2017 purchases were all-cash, Yun said, because wealthy international buyers don’t need mortgages. The foreign property purchases account for 11 percent of the value but only 6 percent of the sales volume, indicating those purchases were primarily high-end homes.

The top international buyers of U.S. real estate last year came, in order, from China, Canada, Mexico, India and the United Kingdom.

Although most of the Chinese purchases were in California, “the Florida market certainly has a larger share of foreign investors,” Yun said. “We have greater contact with people of other nationalities.”

The state, he said, is also “raising the confidence of foreign buyers” with safe property investments that are bound to appreciate.

National Economic Picture

During the first quarter of 2018, a rising number of households expressed more confidence in the economy and their financial position, but only 68 percent of consumers felt now is a good time to buy a house, the lowest percentage in two years. That’s according to NAR’s first-quarter Housing Opportunities and Market Experience survey.

Income, debt and anxiety are stopping some from buying.

“They need to believe things will turn out well after buying,” Yun said. The “very, very competitive” nature of the current residential market — with inventory down 13 percent, prices up 9 percent and mortgage rates expected to rise again — is being met with caution. “They’re feeling rushed to buy.”

From 2011 to 2017, income grew by 15 percent but housing prices surged by 48 percent, Yun said. “This is a big concern for renters,” he said, and an obstacle to converting to home ownership.

Consumers should not wait for mortgage rates, at 4.5 percent now, to fall, not with the Federal Reserve forecast to raise its benchmark interest rate two more times this year and three in 2019.

“Two years from now, mortgage rates could be 6 percent,” Yun said. “Don’t take the current rates for granted.”

While national existing home sales rose last year to their highest level in 11 years, the pending home sales index has stalled and inventory continues to fall, he said. “Builders have been under-producing,” Yun said, and the annual increases in construction since the subprime disaster have been “very minimal.”

Sarasota Herald-Tribune, May 9, 2018

Filed Under: Downtown Sarasota Real Estate, Florida Real Estate Market, Sarasota Buyers, Sarasota Real Estate Market News Tagged With: ,

EPOCH Luxury Condo – Overlooking the Sarasota Bayfront

April 28, 2018 by

EPOCH Luxury CondoAn ultra-luxury condominium tower with clear bay front views is coming to downtown Sarasota. Seaward Development’s lavish 18-story EPOCH project shows the market for multi-million-dollar condos has not passed the saturation point.

The condo community will rise from a 100-foot-wide site between South Palm and South Gulfstream. The only thing separating the building from Sarasota Bay is Bayfront Park.

While the Sarasota-based company announced EPOCH’s debut this week, condo reservations began earlier this month. Buyers have placed reservations on four of the seven full-floor condos, which range in price from $5.39 million to $6.29 million.

One penthouse has yet to be designed or priced. The other 16 units share a floor, with prices starting at $3.22 million.

“It’s amazing how many calls we are getting,” said Amy Drake, a broker with Ocean Real Estate and president of Property Perspectives who is handling marketing and sales for EPOCH. “It shows the demand is there.”

The condos range from 3,689 to 5,379 square feet under air, plus each has multiple bay- and city-view terraces.

Some prospective buyers are seeking these larger spaces, and some desire an urban, walkable lifestyle without giving up space. The demand for direct water views is always strong, Drake said.

Patrick DiPinto, president of Seaward Development, said: “There is strong demand from single-family homeowners who are ready for a change but don’t want to sacrifice the space, privacy and quality their large homes offer.”

The distinctive design of the tower was inspired by the Sarasota School of architecture, said Igor Reyes, lead architect for Nichols, Brosch, Wurst, Wolfe and Associates of Coral Gables. The blending of spaces, he said, “juxtaposed with the distinct outline of each level, provides each residence a sense of individuality that sometimes gets lost in high-rise living.”

EPOCH offers private elevator entries, ceiling heights of 11 to 13 feet, tall walls of glass, open great rooms and kitchens, and large owners’ suites — huge in the full-floor plan, with a living-room-size sitting area.

Community amenities include a porte’ cochere with guest parking; an attended welcome lobby; residents’ clubroom; wellness/fitness center; a tropically landscaped pool terrace with lap pool, spa, fire table and cabanas; roof-top terrace; garage parking and private garages for the full-floor residences.

Construction is scheduled to begin next year, with completion two years later.

Sarasota Herald-Tribune April 18, 2018

Filed Under: Downtown Sarasota Condos, Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota New Construction Tagged With: , , ,

Sales of $4 Million-Plus Homes Surging in Sarasota-Manatee

April 18, 2018 by

Sales of big homes for big bucks continue to be brisk in the Sarasota-Manatee real estate market. Latest sales trends show buyers’ search for value, waterfront and newer homes in current market.

Over the past six months, 28 homes and condominiums in the two counties sold for more than $4 million. Over the same six months in 2016-2017, only 10 properties were sold at that high price point.

 “These are impressive numbers,” Roger Pettingell of Coldwell Banker Real Estate said. He specializes in luxury waterfront properties in Sarasota and Longboat Key. Luxury homes are “moving really good,” he said. “It’s exciting, actually.”

 Others echo those views, citing the Sarasota-Manatee market’s value and attractiveness.

“It’s a really positive trend,” said Joel Schemmel of Premier Sotheby’s International Realty. “Hopefully, the market will continue to accelerate.”

 “These are starting to make us look like a real luxury market,” Pettingell said. And the market is still not overpriced, he said, unlike Naples and Palm Beach.

Brian Loebker, a Realtor with Michael Saunders & Co., called the high-end buyer interest “extremely strong right now.”

Amenities and Value

 “Our customers cite Sarasota as a location filled with amenities and value — you would pay double, or maybe triple, for the same home in other locations like Miami or Naples,” Loebker said. “The Sarasota luxury real estate market is commanding the highest level of interest and attraction in its history at this moment.”

Schemmel calls Sarasota a “destination market.”

Buyers continue to be discriminating in the properties they view, Loebker said. “There is zero tolerance for over-paying or even viewing properties which seem over-priced. The buyers are active, paying with cash, and willing to strike a deal immediately provided it is fair and just for both buyer and seller,” he said. “Any signs of greed or over-self-confidence, and the buyers will never view the property.”

The sheer number of $4 million-plus homes currently awaiting buyers may appear to be just as mind-boggling as the sales figures.

As of April 13, 103 homes were listed for $4 million or more in Sarasota and 19 in Manatee, including single-family homes, condos and townhomes, figures from My Florida Regional MLS indicate.

“The amount of inventory currently on the market over $4 million is not unusual,” Loebker said. “Actually, the overall inventory has been down from October through February, so to see about 100 luxury homes over $4 million on the market right now is on trend with previous years. The key is getting these homes priced right for the buyer pool.”

At the end of April 2017, big listings totaled 79 in Sarasota and nine in Manatee. Listings for April 2016 stood at 70 and 12 respectively, Trendgraphix shows.

Pending sales through the end of this April will likely drop the number of listings, said Jennifer Horvat, chief marketing officer at Michael Saunders & Co.

On water but not on grade

The Realtors pointed out two other trends in the luxury market. The cost of waterfront land “has risen substantially,” Pettingell said, but buyers are less interested in older homes at grade level on water. Properties listed for $1 million to $2 million that are not on the water are the slowest to move, Schemmel said.

A lot of the luxury buyers live in Sarasota but are upgrading their homes while older residents who want to live closer to relatives and community amenities are selling and moving off the islands, thus increasing the luxury-market inventory.

Schemmel added another element to the high-end sales surge: value as an investment. “For the first time in a long time, real estate in the portfolio is a good thing,” he said, and “a great hedge against inflation.”

That is somewhat apparent in one segment of the luxury market. “Sarasota has proven itself as an exceptional location to have a second, third or fourth home,” Loebker said.

Luxury homebuilder Ryan Perrone, president of Nautilus Homes, which specializes in projects that start at about $4 million, agreed that the local market is strong. “We have seen an uptick in interest in our product. It is hard for me to say whether that is just due to a gain in market share or whether it is a trend.”

A wider pool of buyers

The interest is coming from different parts of the country, too, broadening the pool of house shoppers.

“We have taken notice that while our city has been traditionally made up of Midwest transplants, there is a shift of people coming from California and the Northeast,” Perrone said. “I believe that this is because people from these markets are used to looking at those sorts of price points. In fact, those prices look like a deal when coming from L.A.”

Steve Murray, president of Murray Homes, is also seeing an increase in clients from California. Murray Homes is building six homes in the $4 million-plus price bracket, an increase over last year.

“We believe that this is in part due to the state income tax in those states, as well as the new tax regulations,” Murray said in an email. “In addition, our area is seeing an increase in nationwide appeal due to awards, marketing and high-end hotels bringing new visitors to our region.”

Murray echoed the view that Sarasota-Manatee homes represent value. “These clients are used to higher residential prices and so we are seen as a relative bargain when compared with Naples, Miami and their home towns.”

Sarasota Herald-Tribune, April 17, 2018

Filed Under: Downtown Sarasota Real Estate, Sarasota Buyers, Sarasota New Construction, Sarasota Real Estate Market News Tagged With: , , ,

Florida Report: 2017 Profile of Home Buyers and Sellers

January 22, 2018 by

Florida ProfileWhat does the typical Florida buyer or seller look like? Only 1 in 5 (22 percent) of buyers are first-timers compared to 34 percent in U.S., and they’re typically 45 years old.  On the other hand, the average seller is 60 years old, makes about $96,500 annually and owns a home that they think is too small.

The insights stem from the 2017 Profile of Home Buyers and Sellers Florida Report issued by Florida Realtors®with data compiled by the National Association of Realtors® (NAR) research department.

Report highlights

Florida Home Buyer Characteristics

  • In Florida, 22 percent of all buyers were first-timers. (Nationally, it was 34 percent.)
  • The typical Florida buyer was 54 years old and had a median income of $83,000.
  • 68 percent were married couples, 14 percent were single females, nine percent single males, and eight percent unmarried couples.
  • 15 percent of homebuyers purchased a multi-generational home.
  • 88 percent of recent Florida homebuyers identified as heterosexual, four percent as gay or lesbian and less than one percent as bisexual. The rest preferred not to answer.
  • 25 percent of buyers are veterans and three percent are active-duty service members in Florida. Nationally, only 18 percent of recent homebuyers were veterans.
  • At 26 percent, the primary reason for purchasing a home was the desire to own a home of their own.

Characteristics of Florida Homes Purchased

  • In Florida, 18 percent of first-time buyers purchased a new home and 82 percent bought a previously owned home.
  • Why wait for a new home to be built? In Florida, 34 percent wanted to avoid renovations and problems with plumbing or electricity.
  • Why buy a previously owned home? 34 percent were looking for a better overall value.
  • 79 percent of buyers opted for a detached single-family home.
  • 21 percent bought a senior-related home.
  • The median home price was $215,000 and 97 percent of the asking price.
  • The typical Florida home purchased was 1,800 square feet and built in 1996.
  • Overall, buyers expect to live in their homes for a median of 15 years.

The Home Search Process

  • In Florida, 42 percent of buyers looked online first and 22 percent contacted a real estate agent.
  • 81 percent found real estate agents very useful, and 83 percent said the same for websites.
  • Florida buyers typically searched for 10 weeks and looked at 10 homes. However, those who did not search the internet looked at six homes over three weeks.
  • Among buyers who used the internet, 86 percent found photos useful.
  • In Florida, 64 percent were satisfied with the buying process – a better report card for the state than the 61 percent satisfied nationally.

Home Buying and Florida’s Real Estate Professionals

  • 83 percent of Floridians (86 percent nationally) purchased their home through a real estate agent or broker.
  • Why work with a Realtor? In Florida, 56 percent said it was to find the right home.
  • 36 percent of Florida buyers (42 percent nationally) used an agent referred by a friend, neighbor or relative, and 12 percent used an agent that they had worked with in the past.
  • Seven in 10 buyers interviewed only one real estate agent during their home search.
  • Eighty-nine percent of buyers would use their agent again or recommend their agent to others.

Florida Sellers and the Selling Experience

  • The typical Florida home seller was 60 years old, with a median household income of $96,500.
  • In Florida, the top reasons for moving were retirement (15 percent), the desire to move closer to friends and family (12 percent) and a job relocation (11 percent).
  • Florida sellers typically lived in their home for 11 years before selling.
  • 90 percent of home sellers worked with a Florida real estate agent to sell their home.
  • For recently sold homes, the final sales price was a median 98 percent of the final listing price.
  • 33 percent of all sellers offered incentives to attract buyers.
  • 66 percent of Florida sellers were very satisfied with the selling process.

Sellers and Florida’s Real Estate Professionals

  • 63 percent of Florida home sellers found their agent through a referral from a friend, neighbor, or relative, or they used an agent they had worked with before.
  • 74 percent of recent Florida sellers contacted only one agent before finding the one they worked with to sell their home.
  • 93 percent of sellers listed their homes on the Multiple Listing Service (MLS).
  • 81 percent of sellers reported that they provided the agent’s compensation.
  • 34 percent of Florida’s sellers have recommended their agent to others at least three or more times since selling their home.
  • In Florida, 67 percent said they would definitely recommend their agent for future services, and 16 percent said probably.

Florida Association of Realtors January 2018

Filed Under: Florida Real Estate Market Tagged With: , , ,

Looking for a Strong 2018 Real Estate Market

January 19, 2018 by

2018 MarketSouthwest Florida’s residential real estate world is riding a winning streak, and current market conditions indicate continuing prosperity and growth. That’s the consensus evaluation of the robust home market in 2017 and the strong forecast for 2018 among industry insiders in Sarasota and Manatee counties.

Our informal survey panel represents the home-building and selling sides of the business. Their letter grades for this year’s residential market mostly fit into a tight and bright range — from B++ to A+.

“Residential real estate in Manatee, Sarasota and Charlotte counties, in all price points, all home types, continued its consistent momentum through 2017,” reports Michael Saunders, founder and CEO of Michael Saunders & Company, and Drayton Saunders, president. “Buyer demand has been consistently high and rising, inventory was strong and is expected to rise, and prices are seeing an appropriately steady increase.

“In general, it is a neutral market — neither favoring buyers or sellers in any significant capacity, therefore garnering an A-grade.”

Roger Pettingell, a perennial leader in luxury sales and listings and an associate with Coldwell Banker Residential Real Estate, agrees on a neutral market. “The stock market gains of 2017 are translating into strong cash buyers coming into the market. That said, sellers are also feeling quite confident, making for neither a seller nor buyer’s market (which makes a Realtor’s job more difficult!).”

Pettingell, based on Longboat Key, broke the $100 million sales mark for 2017 with a total of $104.6 million, leading the region.

“Using my business as a microcosm of the overall Sarasota market, I’d give this season an A+,” he said. “Not only was it a record breaking year for me, it was a record by 25 percent over last year. If that doesn’t deserve an A, I don’t know what does.”

Lynn Robbins, a Realtor with some four decades selling Sarasota homes and an associate with Coldwell Banker Residential Real Estate, views 2017 as “a strong sellers market.”

“My rating would be a B++ to A- … In my opinion, Sarasota has really been discovered, and the buyers are coming in larger numbers and we are seeing more of them in slower months,” she said.

Xena Vallone, broker/owner of Xena Vallone Realty Inc. and the outgoing president of the Realtors Association of Sarasota Manatee, broke the market in two. “I would rate 2017 residential as an A for sellers because of low inventory, which benefited them by higher prices, but most likely a C for buyers for the same reasons — low inventory and higher prices. I didn’t give it a D because I believe buyers are still getting some great interest rates.”

Lakewood Ranch-based homebuilder and developer Pat Neal of Neal Communities also enjoyed a stellar year. “Certainly 2017 would be an A or an A+. For our target customer (about 55 percent of whom do not have Florida as their address at the time of their first purchase), this has been a great year,” he said.

With 47 years in home construction and sales, Neal Communities has created some 70 successful communities throughout southwest Florida. To date, Neal has built more than 13,000 homes in the region. In 2017, the company built, sold and closed on about 1,168 new homes — topping the previous record year. Sales of new homes totaled $400 million, Neal noted.

Most of those homes — 80 percent — sold in the $250,000 to $500,000 range, the “Marvelous Middle,” as Neal describes the price spread, a range that Realtors find most appealing among buyers.

Across the Sarasota-Manatee-Charlotte market, moderately priced home sales — between $200,000 and $400,000 — “continue to be very strong,” Saunders said, with a 9 percent increase in pending and sold listings year-over-year and an 11 percent increase in the number of new listings over last year.

“Homes in this price range make up the largest segment of our market at 44 percent of total sales,” Saunders said. “With high demand and an average supply, this will force buyers to move quickly and possibly deal with multiple offer situations.”

In the midprice market — from $400,000 to $900,000, which comprises 15 percent of the market — new listings fell in 2017, sales dropped at the lower end and were flat at the higher prices. Sarasota proved to be the exception, Saunders said, with a 30 percent increase in pending sales in November.

Across the three counties, the residential luxury market — $1 million and higher, with sales representing 3 percent of the total market — went from fairly calm waters to a tsunami over the course of 2017. Closed sales were up only 4 percent in the first six months year-over-year, but surged a “staggering 61 percent from July to November,” Saunders said. Pending sales rose 18 percent in the first half of 2017, but soared a “staggering 59 percent” from July to November.

Despite the market hiccup brought about by Hurricane Irma in September, home sales rebounded quickly. Robbins certainly enjoyed autumn. “I was pleasantly surprised in October and November, which have been slower in the past, to find out that they were very busy months for me,” she said.

Multiple Listing Service data for the Sarasota-Manatee-Charlotte market confirm that point. In November, closed sales reached 546, an 8.8 percent increase from the same month a year ago. Plus, there were 677 new pending contracts, up year-over-year by 16.5 percent.

The Realtor Association of Sarasota and Manatee describes the current housing sector as a “healthy market” with combined numbers showing an increase in sales, new listings and prices.

The housing market across Florida also continued its positive streak in November, with more closed sales, more new listings, more pending sales and rising median prices, Florida Realtors data shows.

“In November, Florida’s housing market reflected the trends we’ve grown accustomed to seeing throughout this year,” said Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart.

The year ahead

The final months of 2017 created enthusiasm for 2018.

“I think the momentum which we are seeing, particularly in the last quarter of 2017, will move us forward with a strong 2018,” Pettingell said. “We do know that the real estate market has been in a recovery mode since 2011, and that no market goes up forever, but it looks like there is still plenty of room for further growth in 2018.”

Out-of-state buyers are key players in a strong market.

“Demand is rising, and we feel that it is going to be a busy season with more buyers here than ever before,” Robbins said. “We are seeing more buyers from California and New York than in past years.”

Neal concurs in regards to the market for new homes. He cites the Sunshine State’s broad appeal to out-of-state buyers as one reason the market is flourishing.

“People from Illinois, Michigan, Pennsylvania, New York and Connecticut are finding their way to Florida because of our good quality of life, beautiful environment, good economy and low taxes,” he said. “There has been much more awareness as to the economic advantages of living in Florida. That is, our good and growing economy and also the absence of a state income tax … or estate tax.”

Saunders, too, sees prospective buyers focusing on new construction. “Builders are still answering the pent-up buyer demand for ‘new.’ … Home buyers are electing to purchase a new home over an existing home because of upgrade options, new layout trends and hurricane-resistant materials and construction codes.”

Jon Mast, the chief executive officer of the Manatee-Sarasota Building Industry Association, spotted another current trend — “for new product in Lakewood Ranch becoming more desirable than resales of the same product, thereby lowering prices for same existing product in the Ranch. This will eventually level out over time.”

Saunders links the popularity of new neighborhoods to lifestyle options. “New construction will continue to push forward, especially in areas like West Villages in Venice and Waterside in Lakewood Ranch. The allure of new construction and communities with a plethora of amenities will be in high demand.”

The political climate could be a boon for Florida. With passage of the Tax Cuts and Jobs Act of 2017, the limit on deductible mortgage debt was dropped to $750,000 for loans taken out after Dec. 14. But the implication for Florida real estate lies elsewhere: The measure eliminates deductions of more than $10,000 in state and local taxes from federal tax returns. That could result in a major increase in the tax liabilities for people who itemize deductions and who reside in high-tax states — most probably upper-middle or upper class taxpayers. This, Saunders could bring “a surge of sales in Florida.”

Neal is more emphatic, anticipating a “positive impact” of the federal tax measure on Florida. A key reason is because Neal Communities’ “customers are typically not dependent on mortgage financing, they will not be affected by the mortgage limitations nor some of the limitations on deductibility,” he said.

“We seem to have a strength in the economy. The federal tax reform act will provide further stimulus.”

Neal cautioned against thinking another housing bubble is in the works. “We do not have the building we had in 2003-2006 … but only about one half of the housing production that we had in 2004 (in 2017).”

Another barrier to an overheated real estate market comes as a reaction to that financial crisis — stronger consumer protections. “As credit is so regulated,” Neal said, “I do not see a repeat of the 2003-2006 credit bubble.”

Hot spots

There is broad agreement that downtown Sarasota “is very hot,” as Robbins said, and “with all the charm of our downtown, great restaurants, things to do and close to the arts and Van Wezel, people want to live there and be able to walk to many of these attractions.”

Saunders echoes that sentiment: “Downtown’s residential construction explosion will be a great positive to the downtown commercial and retail sub-market. The growing live-work-play environment in downtown will remain a draw for people from all over the region.”

Besides Lakewood Ranch, the West Villages and the University Parkway corridor, other desirable neighborhoods “will be west of the Trail as buyers want to be close to the water,” Robbins said.

All the barrier islands will continue to be popular, especially Siesta Key with one of the best known beaches in the world. “There are numerous wonderful choices of condos in all price ranges there and one can walk to the beach,” Robbins said.

Herald Tribune December 2017

Filed Under: Downtown Sarasota Construction, Downtown Sarasota Real Estate, Florida Real Estate Market, Sarasota Real Estate Market News Tagged With: , , , ,

New Art Ovation Hotel Plays to Sarasota’s Cultural Heritage

December 15, 2017 by

Art Ovation

Art Ovation – a boutique downtown hotel, poised to open soon, intends to be the city’s “signature hotel of the arts” by embracing Sarasota’s colorful palette of visual and performing arts.

The 162-room Art Ovation Hotel will be well positioned, physically, to claim the title, being on the corner of North Palm and Cocoanut Avenues, a short walk to the Sarasota Opera House and across the street from Florida Studio Theatre. The interior will be well positioned, too, with displays of the work of Sarasota artists. Paintings by local artists — including children — will line the halls, and furniture by area craftspeople will be used in the rooms.

The hotel will feature an Artist in Residence Program, rotating art collections, art curators and VIP packages to area events and experiences. The walls in the massive lobby and nearby hallways will become galleries once the hotel is finished.

Guests can get into the artistic act by borrowing a musical instrument to “jam” with others or to enjoy an acoustic guitar, cello, steel guitar, banjo and other instruments in their own room. And they can contribute their own artwork during their stay. Each room has a leather-bound sketchbook with professional sketching pencils, sharpener and eraser.

Art Ovation will include a full-service restaurant, lobby bar, fitness center and a rooftop pool and bar.

The boutique hotel will be an Autograph Collection Hotel, one of the Marriott International brands with “upper upscale” and luxury independent hotels and resorts around the world. The Autograph Collection includes The Mark in London, the Atlantis on Paradise Island in the Bahamas and the Hotel Adagio in San Francisco. The company boasts that “this handpicked collection celebrates boutique hotels that deserve recognition as architectural gems” — each one “with its own distinct perspective.”

The cavernous ballroom will hold up to 450 people.

The hotel is scheduled to open on Jan. 18, 2018.

Prime Hospitality Group and Shaner Hotels are collaborating on Art Ovation Hotel. The two companies recently partnered to build and manage Playa Largo Resort & Spa in the Florida Keys.

“Sarasota is a mecca for all things arts, and it was clear from the very beginning of the project that we wanted Art Ovation Hotel to reflect the true character of the city,” Larry Abbo, CEO of Prime Hospitality Group, said in a news release. “We’re eager to capitalize on this unique opportunity to draw guests into the arts and cultural scene both on and off property.”

Brian Hockenbury, senior vice president of operations at Shaner Hotels, said, “We’re exploring a number of partnership possibilities, such as collaborating with students at the Ringling College of Art & Design, behind-the-scenes packages with Florida Studio Theatre, pop-up performances from Sarasota Opera, lunches with the director from Asolo Theatre, and more.”

Art Ovation is one of six downtown hotel projects in the works. Should all be built, the city will gain 973 hotel rooms.

One of those other projects is another boutique hotel, The Sarasota Modern, scheduled to open in the Rosemary District along Cocoanut Avenue next summer. This independent Tribute Portfolio hotel, a Starwood brand, will have 81 rooms.

The Modern will sit across Boulevard of the Arts from yet another boutique hotel, Hotel Indigo Sarasota. Both are near The Players Centre for Performing Arts, Art Center Sarasota and the Sarasota Orchestra.

Herald Tribune December 13, 2017

Filed Under: Downtown Sarasota Construction, Downtown Sarasota Real Estate, Sarasota New Construction Tagged With: ,

The Bay Project – Arts & Cultural District Downtown Sarasota

December 11, 2017 by

Plans are to transform the 42-acre city-owned area around the Van Wezel Performing Arts Hall into a Public arts and cultural district.

A new vision for the city-owned bayfront in the heart of downtown Sarasota will be delivered to, and ideally approved by, city officials as soon as mid-July 2018, according to the groups spearheading the project.

The ambitious timeline could complete the project after nearly two decades and an array of plans from the city and numerous civic groups most recently brought together under the Bayfront 20:20 umbrella.

Now called simply The Bay, the project turned a corner over the past two months when Boston-area planning firm Sasaki and former Kimley-Horn & Associates executive Bill Waddill were hired to lead the master plan process to transform the 42-acre city-owned area around the Van Wezel Performing Arts Hall into a Public arts and cultural district.

The group raised more than $2 million in private funding from local foundations and philanthropists for the master plan and held a series of “listening sessions” this week, including at the City Commission, before making the first major public presentation since Sasaki and Waddill joined the effort at a Herald-Tribune forum Wednesday.

“We are just kind of blown away by this opportunity and it’s just amazing,” said Susannah Ross, a senior associate with Sasaki working on the plan. “The water’s edge condition changes as you move through the site. I think there are so many possibilities for how to expand on that and experience the bay.”

Ross and Sasaki principal Martin Zorgan, an urban planner, presented the process by which their firm, partner firms and a team of local advisors on the nonprofit Sarasota Bayfront Planning Organization will, over the next eight months, draft a master plan for the physical site and financing mechanisms that could pay for it.

“Who’s gonna pay for it?” Martin said. “Well, it’s a little bit of all the above. There’s philanthropic monies, there’s federal monies, there’s state monies, there’s local monies … what, if any, taxpayer monies go to it.

“We don’t want it to be a surprise … it’s not easy by any means, but it’s definitely doable and great things are worth doing.”

“The process will include studying the series of previous plans for the site, the Bayfront 20:20 ideas and the range of construction going on and planned around it — from the 18-story BLVD condominiums to the east to the massive Quay Sarasota project to the south and the series of roundabouts along U.S. 41 throughout the corridor,” Zorgan said.

Sasaki’s team will consider ways to draw visitors and residents alike to the new space with open areas, opportunities to interact with the bayfront and the buildings along the bayfront now, like the Van Wezel and the lawn bowling and garden clubs, Ross and Zorgan said.

The project is light on specifics about those plans and the financing, but those will develop as Sasaki returns for more feedback in February and then again in April. Draft plans will be presented in May and June.

“We haven’t done it yet, but one option is you in perpetuity establish the site as a Sarasota Land Trust or whatever and you govern it under certain standards,” said A.G. Lafley, chairman of the planning organization and former CEO of Proctor & Gamble. “I’m not making this up off the top of my head — this is done in cities across America and around the world.

“We’re not just going to show a fancy plan from Sasaki and Bill Waddill,” he continued. “We’re really going to work on the financing piece and government piece and the sustainability piece.”

Mayor Shelli Freeland Eddie stressed to the group at its presentation to the commission Monday night that the public continue to be able to provide feedback on the versions of the plan as they develop.

Ultimately, the City Commission will have the final say on the plan, City Planning Director Steve Cover said during the forum.

“It needs to provide accessibility to the water, it needs to be accessible to everyone, it needs to be accessible across (U.S.) 41 and it needs to be a transparent process,” Cover said. “Those are the things we’ll be focusing on. Plus when we get to the end we’ll have to address any regulatory problems involved.”

“The goal is a master plan that represents, as I said, what the community needs and wants that’s executable because we can afford it we can do it and it’s environmentally sustainable,” Lafley added later. “Ultimately the city controls the land.”

Herald Tribune December 6, 2017

Filed Under: Downtown Sarasota Construction, Downtown Sarasota Real Estate Tagged With: , ,

Sarasota-Manatee New Home Starts at Post-Recession Highs

November 17, 2017 by

New Home Starts SarasotaThe third quarter of 2017 proved to be a gem for housing starts in the Sarasota-Manatee market.

“Despite Hurricane Irma, quarterly starts were the best we have seen post-recession,” Metrostudy reported Tuesday.

The company, which provides market information to the housing and related industries nationwide, said the two-county market is building at about 120 percent of the 20-year moving average. And the growth is next expected to stop next year.

“Irma may push some closings into 2018, but she did not materially impact our forecast for increasing housing starts in 2018 for Sarasota,” said Tony Polito, regional director of Metrostudy’s Sarasota-Bradenton market.

The research, data and analytics company’s third-quarter survey of the Sarasota-Bradenton housing market found that 1,514 single-family units were started in the quarter, an increase of 3.4 percent compared with last year’s third quarter. The new figures also are 4.1 percent more starts than in this year’s second quarter.

Single-family closings in the quarter were 1,327 units, which was 2.2 percent higher than third quarter of 2016. Irma likely affected closings, which fell by 211 from the second quarter, according to the study.

The survey also found the problem of workforce housing is getting worse. “Affordability is getting squeezed in the lower price points as new home starts under $250,000 are down 20 percent year over year.”

For the 12 months ending Sept. 30, starts of new under $250,000 totaled 1,211, down 20 percent from the third quarter of 2016. Annual new-home starts over $250,000 increased 6.9 percent, the survey found.

“Hurricane Irma impacted jobs and the local economy in September,” Polito said, “but this is expected to be a short-term impact, although with a 3.3 percent local unemployment rate, new job creation is highly dependent upon new population growth.

This quarter, 1,763 lots were delivered to the Sarasota-Bradenton market compared with 1,251 in last year’s third quarter. Vacant developed lot inventory stands at 36,977 lots, an increase of 0.2 percent compared to 36,904 last year.

“Based upon the annual start rate, this level of lot inventory represents an 80.1-month supply, an increase of 0.5 months compared to last year,” Polito said.

During the recent third quarter, Manatee County recorded 747 housing starts, up 19.5 percent over the second quarter and up 19.5 percent compared with 2016′s third quarter. Sarasota County logged 600 housing starts this past quarter, up 24.5 percent versus this year’s second quarter and up 7.1 percent compared to last year’s third quarter.

Herald Tribune November 7, 2017

Filed Under: Downtown Sarasota Real Estate, Sarasota New Construction, Sarasota Real Estate Market News Tagged With: , ,
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