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How is Turnberry Ocean Colony a Luxury Oceanfront Condo doing?

In 2008, when the realization of a financial crisis was still setting in, real estate prices were all over the place.  There were sellers not budging off all time high prices, there was an influx of short sales and there was an undercurrent of fear. Well a great deal has happened in the past two years.  The large inventory on the market has been reduced and sales have picked up.

There is a recurrent theme with the high end luxury buyers that I work with.  FIrst, they love South Florida want to own a second home here.  Secondly, there is a belief that prices are still attractive and will appreciate in time, and finally the banks are not providing good returns, real estate is a good investment.

I wanted to provide a snapshot of Turnberry Ocean Colony a great example of a luxury oceanfront condo.

Turnberry Ocean Colony in Sunny Isles is one of the truly exclusive high end luxury oceanfront condos along the coast. Turnberry Ocean Colony offers very large  direct oceanfront and flow through units with west views.  Condos are from 2200 square feet for a two bedroom unit to over 3700 sq. ft. for 4 bedrooms with maids quarters.  The service and amenities at Turnberry Ocean Colony are truly exceptional and deserve the “luxury” classification.

In March 2 008, I wrote a profile on Turnberry Ocean Colony .   Let’s take a look at Turnberry Ocean Colony in 2008 compared to sales figures today.

__________________March 2008 _____March 2010______________

Pending sales                    3                           10

Number of Closed Sale    10                          10              (prior 6 month period)

Number of Listings          58                           32

Lowest Sold Price           $492 (Dec.08)   $465 (Oct.09) (prior 6 month period)

What does this all mean?  Inventories are down 46% ! As inventories continue to decline, sellers tend to be firmer on their prices and buyers have less choices. Clearly with such a dramatic increase in pending contracts, sales are picking up. Are there still motivated sellers in the market?  Absolutely!  Is there that pending fear that the luxury market is collapsing? Not so much.

Overall, the performance of the luxury oceanfront condo market is very building specific, however, one fact is consistent…inventories are down.

As reported int the Wall Street Journal, a survey was published this week that showed wealthy investors have a renewed appetite for real estate. This has been seen in the increased sales data for luxury oceanfront condos in South Florida from Miami to Fort Lauderdale.  In the past 12 months there have been 434 oceanfront condos sold priced over $800,000.  250 luxury oceanfront condos close over $1 million this year.

The survey from Barclay’s Wealth revealed that wealthy investors expect to increase their asset allocation to real estate. Over the next two years, 35 percent of respondents plan to increase the proportion of real estate in their portfolios (not including their primary residence), while 48 percent plan to maintain their current allocations. The main reason that investors give for the increase is that they believe real estate offers better long-term prospects than other asset classes.

Outside their own countries of residence, most investors consider the U.S. to be the most attractive real estate market.

A survey of 2,000 investors world-wide with investible assests of more than $800,000 showed that 75% of respondents felt residential real estate is an attractive investment.

About half of those surveyed expect an increase in the value of their real estate investments over the next two years. Almost 40% of those with assets over $50 million have over 50% of their portfolio in real estate.

The survey also revealed that half the women found investing in real estate less risky than men and enjoyed real estate investing more than men.

Sales are defintely up !  Housing figures are showing an increase in sales. What does this mean for oceanfront condos in South Florida?  Luxury buildings that we follow are showing an increased number of sales all along the coast.  A year ago the numbers were quite different.  South Florida oceanfront condos have a world wide appeal and continue to be a desirable location for a second, third or forth home acquisitions Sales figures in this unique market has shown some incredible activity.

How does that translate to the luxury oceanfront condos that we follow?  The most obvious trend is that the least expensive condos in the luxury buildings are selling.  When prices went down there were some new lows presenting buying opportunites that were previously unheard of.  For example,  the Palms in Fort Lauderale, prices for condos in this luxury building average a $1 million and up.  There were about a half a dozen units priced below $1million and almost all of them have sold.  There are buyers in the marketplace identifying great buildings and picking up great inexpensive buys.

Bargain priced units are not the only condos selling.  Desirable units with  large square footage and/or exceptional views are also selling. Turnberry Ocean Colony has a reported 4 units under contract.  This is one of the finest buildings along the coast.  Prices are well over $1million.

The Beach Club, with 1200 units in total, not surprisingly,  has the most activity of any oceanfront building.  29 units have gone to contract !!!

Here is a sampling of what has been reported as pending sales in several buildings:

There are buyers in the market place identifying great buildings and picking up great inexpensive buys.  There are also buyers that are taking advantage of having several desirable units to choose from.  As we move into the winter season, I anticipate that this activity will increase as buyers jump into the market.   We will continue to see inventories decline as well.

The market today is not a “typical” market where the standard procedures of negotiating applies to every scenario.  Many buyers come into the market expecting to follow the procedures of buyer submitting and offer, seller countering offer,  terms negotiated back and forth.   The scenarios that exist today that I experience firsthand through the numerous offers I present on behalf of my clients run the gamut.  In certain situations, offer-counter-offer, playing it along,  is the way to go.  In other situations….it is what it is.

I want to address properties being sold by owners not in distress.  There are properties listed today, by very motivated sellers.  In some cases, they have priced their property at the rock bottom price that they are willing to sell it at.  No negotiating.  This is a marketing technique.   I have come across this situation several times, from both sides of the fence, representing both a buyer as well as for a seller in which I represent.

One of my listings at Canyon Ranch, unit 301, is priced very aggressively the seller is not negotiating, and that is clearly explained.    I have received offers below the asking price, and I certainly understand why a buyer would try.  However, the issue that I  have come across is that buyers are getting “insulted” that they have not received a counter offer back below the asking price.    The owner has set their bottom price and it is what it is. It is not a distress sale.  There is no negotiating at all …..  The process is not the issue.  The property is the issue. Each property has to be evaluated.   Recently, I was working with a buyer that came in with a very low offer.  The seller responded back with their bottom selling price.  The buyer was insulted.  The process is not the issue the property is the issue.  Evaluating value.

Sales are up in South Florida and there are many many buyers out there scooping up  unique buying opportunities.  Statistics prove it.   We are going into our season and this is going to continue and increase. Building after building that I investigate for my clients are reflecting growing lists of units that have gone to contract and are “pending sales”. Especially, in luxury buildings, the lower priced units are selling.  In Miami Beach, Bal Harbour and Sunny Isles,  there are over 311 oceanfront condos that have gone to contract and are pending closings.  37 of those are priced at over $1 million.  In November 2008 there were only 58 pending oceanfront condos.  In Broward county, which includes Hallendale, Hollywood, and Fort Lauderdale, there are 250 oceanfront condos that have gone to contract and are pending closing.

There are great opportunities in the market, however, whether it is a pre-foreclosure, bank owned,  or motivated seller, expect the unexpected !

There are numerous luxury oceanfront condos along the coast in South Florida ; in Miami Beach, Fort Lauderdale Boca Raton and Palm Beach.  Each building has its own personality, style and vintage.  The great majority of the luxury oceanfront condos rise 20, 30 or 40 stories high, with over 200 units per building.  

There is an option for those that prefer a smaller number of residences in a building.  These are known as “Boutique Buildings”  Some of the “boutique buildings” also are low rise buildings as well rising no higher than 12 floors.

In Hollywood, there is the newly built Villas of Positano. Built by Architect-Derek Vander Ploeg, known for projects such as Mizner Park and the spectacular Excelsior in Boca Raton.  The interiors were completed by the Perla Lichi Design group, known for exceptional high-end residential design.  

The Villas of Positano is situated between the ocean and the Intracoastal Waterway in Hollywood. The building consists of only 62 residences and is only 11 stories high.  Prices at the Villas of Positano start at $1,050,000 for 2771 square feet and go up to $2.6 million for a four bedroom villa.

Everyone today is looking for a great deal.  Here is an opportunity….. a magnificently unit finished by Steven G, renowned residential and commercial designer.  Over 3400 square feet 3 bedrooms 3 and one half baths. Asking $344 per square foot including all furnishings….. $1.2 million.  This is a west facing unit with limited ocean views.  Large living space, in a first class unique building, move in ready …turnkey…everything included !

Entry Foyer

Grand Living Area

Kitchen-

Dining Room- Can be converted into a 4th bedroom

Master Bedroom

Other buildings in South Florida similar to the Villas of Positano’s Mediterranean style are the Bellaria in Palm Beach and the newly build Luxuria in Boca Raton.

Another “Boutique Building” with a modern South Beach feel is Coconut Grove in Fort Lauderdale.  This building has Smart Building Technology and is situated right next door to the Marriott Harbor Beach Club.   I have recently written a post on their price reductions. 

There is an oceanfront unit at Coconut Grove on the second floor in the best line in the building. (happens to be my listing).  Unobstructed ocean views.  The unit feels like you are living at a  beach house on the sand.  You can hear, smell and see the ocean.  2 bedrooms 2 and one half baths with a separate laundry room.  2001 square feet asking price $1,299,000.

View from Unit 202 Coconut Grove-  MLS Number F1002876

I was invited to a private party at One Thousand Ocean in Boca Raton .  Construction is moving along on schedule and the Boca Raton Resort Beach Club is expected to open in January.

The Boca Raton Resort has some outstanding restaurants including Morimotos.  Famous Chef Morimoto was at the party and I certainly enjoyed the sushi ! 

It is so exciting to see the progess on this luxury oceanfront condo. There are very few oceanfront condos in South Florida that have a footprint right at the inlet.  This location is exceptionally appealing because it offers continual viewing interest as all the boats coming in and going out to sea ride past your window.  

One Thousand Ocean is exceptional in many ways.  In addition to its outstanding location,  this oceanfront condo offers ultra luxury quality coupled with access to all the amenities of the Boca Raton Resort and Beach Club. All these assets makes this an outstanding luxury oceanfront condo.

There are only 52 one and two story Residences.  The smallest unit starts at 3,072 square feet and the largest unit exceeds 5,800 square feet.  There have been buyers that have bought several units. One buyer purchased 3 units and will have a residence exceeding 10,000 square feet. 

Construction is progressing on schedule as the Penthouse floor has just been completed at One Thousand Ocean in Boca Raton.  It is expected that work will begin on the interiors as well as the exterior facade in the upcoming week.

One Thousand Ocean is built on the most coveted inlet in Boca Raton on South Ocean Boulevard.  It is situated across the bay from the Boca Resort & Beach Club which in January will join the Waldorf-Astoria Collection.  The Beach Club is undergoing a $120 million renovation which will offer a completely renovated facility including the three oceanfront pools, guest residences, oceanfront dining, children’s play area and stuning oceanfront bar.

The Boca Raton Resort is truly an all inclusive destination offering all the amenities you could think of.  Residents at One Thousand Ocean will be a stones throw away from it all.  The Boca Resort & Beach Club has recently added some great dining options including The Old Homestead, Morimoto, Lucca and one of my old New York favorites Serendipity for frozen hot chocolates.    

This is one of the truly unique ultra luxury properties available in South Florida. There will be only 52 one and two story Residences.   Residences start at 2,835 square feet.  The Beach Penthouse is 5837 square feet with an outdoor living area of 3,665 square feet.

The St. Regis Resort and Residences Bal Harbour is under construction and you can see the towers rise.  It will eventually be 27 stories high on nine acres of lushly landscaped gardens and 1,000 feet of white sand beaches.

Each tower will have its own private lobby entrances, security, valet, and covered parking, as well as access to all anticipatory services provided by the St. Regis Hotel.   The St. Regis Resort and Residences, Bal Harbour will feature 268 Residence, 36 condominium-hotel suites, 183 hotel roms, 24 fractional ownership Residences in three all-glass towers.

Exclusive to St. Regis Hotels and Resorts, Remède Spa offers a comprehensive menu of customized and results oriented facial, massage and body treatments.  To create the decadent spa experience that is unmistakably Remède, the luxurious treatments are combined with signature touches, including; chilled champagne, Jacques Torres truffles, and Kashwére throws.

St Regis Bal Harbour available units range from 2 bedroom 2 and one half baths to 3 bedrooms media room and 3 and 1/2 baths.  Square footage ranges from 1,777 square feet to over 3,884 square feet, and prices range from $1,944,900 to $7,126,900.   Per square footage prices range from $1094 per square foot to over $1835 per square foot.

It is exciting to see the construction underway and we look forward to watching its progress in the coming months.

As, reported by the Wall Street Journal, a growing number of rich Russians are house-shopping and buying in costly U.S. enclaves. The WSJ states, the “Miami area in particular is drawing Russians with its upscale shopping, hip nightlife and an escape from Moscow’s harsh winters.”

Donald Trump;s $100 million mansion in Palm Beach was recently purchased by fertilizer mogul Dmitry Rybolovlev.

South Florida attracts second, third and fourth home buyers from around the world.� Visitors to blogsouthflorida.com come from every country imaginable.

In the last 6 months there were 10 reported closed sales in the ultra luxury condo market, over $5 million. The most expensive reported sale was at Fisher Island. A 5 bedroom 8900 square foot trophy property sold for $12,360,000. The asking price was $15,500,000. That is a 21% price reduction! As we have written before, there are buying opportunities in this market in all price ranges.

In the ultra luxury market, prices are well over $1000 a square foot and can easily step into the $2000 per square foot range.

There are a few ultra luxury oceanfront condos in pre-construction stages that are also selling in this market. The St. Regis in Bal Harbour, for example, offers a magnificent direct oceanfront 3 bedroom plus media room totaling 3,884 square feet. The St. Regis Bal Harbour Residences, offers the unique Bal Harbour location, all the outstanding amenities and services the St. Regis has to offer, and direct magnificent South Florida Oceanfront views. Asking prices offered for these premier units run around $1,800 square foot. Developers are also somewhat negotiable as well. The St. Regis Bal Harour will be a total of 268 Residences and 36 condominium hotel suites, as well as 183 hotel rooms. The condo-hotel units are sold out. The St. Regis Bal Harbour Information.

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The Ritz Carlton Residences in South Beach, another luxury property offers several floor plans ranging from under 1000 square feet to over 2000 square feet. The penthouse recently sold for $17 million. This is a much smaller project with only 86 private residences. Prices are well over $1000 a square foot. At the Ritz Carlton Residences buyers will enjoy the unprecedented services the Ritz Carlton is known for worldwide as well as the direct ocean South Beach location. Ritz Carlton South Beach Information.

There are other ultra luxury pre-construction projects underway in Miami and South Florida and they are selling to buyers from all over the world.