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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 !

In the last 90 days there have been many oceanfront condo sales that have closed.  We wanted to be specific by showing our readers what has actually sold, and what prices buyers are paying.  As we move into the fall season, increased sales are expected for second home buyers looking for good buying opportunties.

Blogsouthflorida, focuses primarily on newer oceanfront condos so the condos listed are in buildings built after 2000 and with a minimum of 2 bedrooms.

In Miami-Dade there were 89 oceanfront condos that sold.  The Penthouse at Continuum sold for $9,900,000, asking price $14,500,000,  32% off asking.  There has been several sales at Turnberry Ocean Colony in Sunny Isles.  This is one of our favorite properties in South Florida and prices on a per square foot basis are quite attractive.  There have also been several sales at One Bal Harbour, another sought after luxury oceanfront property.  We are delighted to see several sales at Canyon Ranch as well.

Oceanfront Condos closed sales in Miami Dade, which includes; Miami Beach, Bal Harbour, Sunny Isles, etc. from May 4,2009 through August 2, 2009.  Criteria used includes only buildings built after 2000 and condos with a minimum of 2 bedrooms. The last column is showing the % of sale price to list price.

All information is from the regional MLS

The following data reflects oceanfront Condos closed sales in Broward County, which includes Hallandale Beach, Hollywood, Fort Lauderdale etc, from May 4,2009 through August 2, 2009.  Criteria used includes only buildings built after 2000 and condos with a minimum of 2 bedrooms.   The last column is showing the % of sale price to list price.

All information is from the regional MLS

n Broward County, The Ritz Carlton,  had a closed sale of a large 3073 sq. ft. oceanfront condo for $1,800,000, asking price $3 million, 40% off asking price.   Not surprising, there are the most sales at the Beach Club in Hallandale Beach.

Luxury Oceanfront Condos along the coast in South Florida vary immensly.  Each building has its own character as does each neighborhood and each city, and those variances are reflected in the price.   Worldwide attention is focused on oceanfront condos in South Florida as the price swings have been reported around the world.   To summerize our market we like to provide our readership with statistics and data.

I have selected 7 very different luxury oceanfront condos along the coast to take a look at. These 7 condominiums are all relatively new and represent a cross section of oceanfront condos along the coast.   Continuum in South Beach, Canyon Ranch in Miami Beach, One Bal Harbour in Bal Harbour, Turnberry Ocean Colony in Sunny Isles, Ocean Palms in Hollywood, The Palms in Fort Lauderdale, and The Excelsior in Boca Raton.

The information provided addresses, number of closed sales, $ per square foot, average $ of asking price, number of units currently under contract (pending), and total number of units for sale in each building.

In continuation of the previous post Oceanfront Condo Deals-Bank Owned, Short Sale or Motivated Seller,  we wanted to provide additional data on the South Florida Oceanfront Condo market including, Miami, Fort Lauderdale, Palm Beach and all the localities along the coast. The data below details the breakdown of closed sales for the past 6 months.  

Although, there are short sales and bank owned properties closing, clearly the majority of transactions are not distressed properties.  Furthermore, buyers today are all looking for great opportunities.  It is safe to conclude that the non-distressed sales were offered by motivated sellers in tune with the current market conditions.  The buying opportunties out there certainly fall into all three categories and are not limited to just distressed-properties.

The economic situation and the housing market has brought the spotlight on to SHORT SALE AND BANK OWNED  properties as I have written in a previous post.  There are oceanfront condo opportunties in Miami, Fort Lauderdale, Boca Raton, Pam Beach, Sunny Isles, Bal Harbour…every where.   As many buyers have come to learn, the short sales process can often be a shot in the dark.  The offers are submitted to the bank and the banks response time is an unknown.  But…. short sales are getting closed.  

Some of the Bank Owned units coming on the market are priced well below market value, creating an auction type response.  Buyer’s submit their best and highest offers.  The banks look at all the offers that come in within a certain period of time and select the best offer with the best terms.   Those selected offers are most often cash purchases with a quick close and can be well above the listed asking price.  Timing is key because once these properties hit the market, the offers come in within hours and are submitted to the bank very quickly.  The last offer we submitted for a buyer had to be within 48 hours of when the property became listed for sale.  Our buyers offer was above the asking price but not high enough.

And then there are MOTIVATED SELLER.    We have had great success in finding motivated sellers for our buyers.  Finding these great opportunities are very building specific and unit specific  but they are out there.  These buying opportunities are very straight forward and can be sold and closed very quickly.  

The Beach Club in Hallandale is an oceanfront condo with 1200 units and in great demand. For illustration purposes let’s look at the data for The Beach Club for the past 6 months. 

As you can see, there have been a total of 56 closed sales.  Of the all the closed sales,  more than half have been sold directly by the owners not in any distressed situation forcing a short sale or foreclosure.   I think it would be safe to say that successful seller’s of oceanfront condos in South Florida are well aware of market conditions and are aggressively pricing their units to sell.  

Sales at the Beach Club not long ago were averaging $500 per square foot and up.  The lowest priced closed sale was a bank owned unit at $241 sq.ft. 

Short Sales, Bank Owned and Motivated sellers present buying opportunities.

We haven’t posted in a while, because we have been very busy with buyers looking for great opportunites as well as with institutional buyers looking for bulk sales. There is plenty of activity in the market.   Active buyers in luxury oceanfront buildings are picking the best line units in buildings, taking advantage of the “buyers market” that exists. 

To provide you with an idea of the sales activity of oceanfront condos, here is a sampling of  closed sales for the past 6 months in South Florida. 

• One Bal Harbour. Bal Harbour- 6 closed sales all over $1.3 million-NOTE:  Unit 208 Originally listed at $3.1 million closed for $2.2 million, one of the most desirable units

• Turnberry Ocean Colony, Sunny Isles - 4 closed sales from $1.1 million and up

• Continuum, South Beach- 6 closed sales all over $1.1 million

• Beach Club Hallandale Tower One- 13 closed sales- 5 direct ocean units starting at $550,000.

Bank owned, also known as REO’s,  and short sales exist along the coast in South Florida.  For an oceanfront condo buyer these are worth taking a look at but may or may not be the right choice.  Following is statistical data on short sales and bank owned properties in South Florida, including; Miami Beach, Bal Harbour, Sunny Isles, Hallandale, Hollywood, Fort Lauderdale, Boca Raton and Palm Beach.

If you can’t read the chart very well, email me and I will send you back a clearer version. 

Currently, there are 654 oceanfront condos in short sale.  However, in the past 6 months there have only been 101 closed short sale transactions.  Entering into a short sale transaction can be a long process with unsuccesful results.  The process seems to be improving lately, as all parties involved become more experienced with this type of transaction.  Furthermore, with the new stimulus package, perhaps the banks will be more willing to move these properties along. 

The majority of the short sales on the market today are priced under $300,000, 358 condos.  However the actual closed sales in that price range is relatively sparce with a mere 33 closed transactions reported in the past 6 months.   If we compare  closed sales in each price category compared to the number of active listings, the highest ratio of closed sales would be in the over $1million price range.

Oceanfront bank owned properties are another story.  There have not been that many.  You can see that as they come on the market they are selling.   As in the short sale scenario, the inventory of the higher priced condos that are bank owned have sold.  When bank owned properties come on the market they are often priced well below market value.  If they do not price them low enough, I have found that soon after they reduce the price significantly to a level where the offers start coming in.  In that scenerio, there usually are multiple offers submitted.   At that stage, the bank comes back to each buyer and requests best and highest offer.

We will be carefully watching to see if the stimulus plan will change the dynamics of the short sale bank owned oceanfront condo market.

Data has been extracted from the South Florida MLS.  All effort has been made to provide accuracy but is not guaranteed.