Posted by: chris
on Apr 01, 2010
Tagged in:
Tropic Winds ,
Tidewater ,
Sterling Breeze ,
Shores of Panama ,
Panama City Condos ,
Panama City Beach Real Estate ,
Palazzo ,
Origin at Seahaven ,
Ocean Reef ,
Marina Landing ,
Laketown Wharf ,
Aqua Condominium
In the September 2008 Market update I reported the outstanding developer inventory according to Bay County Records. I thought I would take another snapshot of the market. Many things have changed. Some of the inventory has changed hands. I am now simply going to refer to the units as "Remaining Units". A number of the condominiums do not have the ability to sell the remaining inventory freely. Some are tied up in litigation. Others are held by institutions or entities that are choosing to hold the inventory.
Most of these condominiums have detailed stories behind the sales and pricing. I am not going to get into any specifics here. Aqua, Palazzo, Ocean Reef, Grand Panama, Tropic Winds, and Origin at Seahaven have been selling off inventory. Aqua and Grand Panama just recently offered new pricing.
Posted by: chris
on Nov 12, 2009
Several sources across the internet are posting articles about new FHA underwriting guidelines. The specifics of this new guidance can be found here (FHA Temporary Guidance for Condominium Policy). Different sources are posting articles with different opinions on these changes. The Miami Herald is claiming it could boost the condo market:
FHA Moves to Boost Condo Market
The Federal Housing Administration is giving the condo market something it hasn't had for a while -- a little breathing room. Last week, the FHA, the federal agency that insures low-down-payment home loans for private lenders, said it was relaxing its building underwriting guidelines as a way of helping the struggling sector ride out the downturn. The move could help boost sales in condos by making more FHA mortgages available to borrowers. (Source: Miami Herald)
Posted by: chris
on Apr 19, 2009
Shores of Panama in Panama City Beach offer reduces prices again. You can see a complete list of the Shores of Panama Phase I and II price list here. Shores of Panama has completed Phase I, Phase II, and the amenities. The resort amenities include 2 full service spas, 2 Tiki bars, a 14,000 square foot lagoon style pool, an additional indoor pool, gym, and reception desk. Click here for a full list of floor plans, amenities, pictures and more.
New Shores of Panama Phase I pricing *
New Shores of Panama Phase II pricing *
*
Posted by: chris
on Apr 12, 2009
Real estate condominium re-sales in Panama City Beach were flat in January when compared to January of 2008. Eight of these sales were a direct result of the Origin at Seahaven auction. Twenty-six condos sold in 2009, compared to the eighteen (non preconstruction) sales the prior year. Sixty-six additional condos sold in 2008 were a result of preconstruction closings at Tidewater. Marina Landing also had three preconstruction closings.
Real estate condominium re-sales in Panama City Beach were flat in February when compared to February of 2008. Five of these sales were a direct result of the Origin at Seahaven auction. Forty-nine condos sold in 2009, compared to the thirty-seven (non preconstruction) sales the prior year. Fifty-three additional condos sold in 2008 were a result of preconstruction closings at Tidewater. Sterling Breeze also had eleven preconstruction closings.
Real estate condominium re-sales in Panama City Beach were flat in March when compared to March of 2008. Fifty-two condos sold in 2009, compared to the fifty-six (non preconstruction) sales the prior year. Forty-nine additional condos sold in 2008 were a result of preconstruction closings at Tidewater. Sterling Breeze also had twenty four preconstruction closings.
Posted by: chris
on Mar 08, 2009
Silverton Bank was the only bidder that showed up to the
Shores of Panama Auction on March 5th. Silverton submitted the highest and best offer for the property in the total amount of $68.7 million. The following day the Bankruptcy Court for the Northern District of Florida approved the sale. Now Silverton Bank holds ownership to the outstanding units in Shores of Panama phase II free and clear of all liens, claims, interests and encumbrances. They are one step closer to moving Shores of Panama phase II forward and out of Bankruptcy.
Many banks are not offering financing for Shores of Panama phase I or II because of the bankruptcy. This could effect the individual owners of phase I who are currently trying to sell there condominiums. This should change once phase II emerges from bankruptcy.
Posted by: chris
on Feb 20, 2009
And then there were none.
Tropic Winds marks the end of preconstruction condominium projects in Panama City Beach for some time to come. With Tropic Winds' CO (certificate of occupancy) being issued this week, we now have no more resort style condominiums under construction. Some could argue that Island Reserve and Cabana Cay are still building out and will be the last two official condominiums in Panama City Beach under construction. I believe we can all agree that neither of these projects can claim any type of gulf frontage or view.
We still have a significant amount of developer held inventory. Some of this inventory is selling at a normal pace. We are also starting to see new signs of the market bottoming in certain buildings and floor plans. This should not be confused with a bottom in the overall market. We have buildings that are selling units every quarter at a price people are willing to pay. We also have buildings that have not seen buyers in well over a year.
Posted by: chris
on Feb 11, 2009
The United States Bankruptcy Court for the Northern District of Florida Panama City Division ordered the scheduling of an auction and a follow up hearing to approve the sale for Shores of Panama. This will be a bulk purchase auction held on March 5, 2009 at 10 AM EST. Initial bids must be received from Qualified Bidders by 4:00 PM CST on March 4, 2009.
Qualified Bidders must deliver $100,000 certified funds in escrow; provide evidence of financial wherewithal, experience, and other relevant considerations before the Initial Bid Deadline. Bids must be at least $80 million for the property.
Shores of Panama has 680 (estimated) feet of gulf frontage. It sits on 6.5 acres. There are roughly 1000 striped spaces in the attached 12-level parking garage. The property will include 370 units with an average of 1,089 square feet per unit. There is also commercial space of 27,412 square feet, the beach club, and two separate parcels of vacant land.
ASSET STATISTICS
Unit Type # of Units Square Feet
A 1BR / 2BA + BK 8 864
B 2BR / 3BA + BK 6 1,131
C 1BR / 2BA + BK 32 907
E 2BR / 2.5BA + BK 1 1,131
F 1BR / 1.5BA + BK 11 911
G Efficiency 20 473
H 2BR / 3BA + BK 22 1,453
I 1BR / 2BA + BK 3 980
J 2BR / 2.5BA + BK 4 1,070
K 2BR / 3BA + BK 66 1,184
L 2BR / 2.5BA + BK 38 1,102
N 1BR / 2BA + BK 69 936
R 3BR / 3BA + BK 23 1,523
S 2BR / 2.5BA + BK 22 1,279
T 1BR / 2BA + BK 23 951
U 3BR / 3BA 22 1,400
Total / Avg 370 1,089
Additional Details
Commercial Space 27,412 SF
Parcel #1-Vacant Land 0.5 acres
Parcel #2-Vacant Land 2.0 acres
Beach Club 1.4 acres
Posted by: chris
on Feb 09, 2009
It has now been roughly 6 weeks since the Origin at Seahaven absolute auction. According to my review of Bay County Records, Origin at Seahaven sold twenty developer owned units as a direct result of the Auction. Hours after the end of the auction the sales boards showed twenty-seven units under contract. All contract holders had fifteen calendar days to walk away from there contracts without penalty. Developer units are still available and listed for sale.
For those of you who missed the Origin at Seahaven Auction Results article, here were the results: Please keep in mind that a 10% commission was added to everyone's purchase price. So, if you bought a:
"three bedroom lockout" (gulf view) for 270k, you paid $297,000 which is $166 a square foot
Posted by: chris
on Jan 28, 2009
Real estate condominium re-sales in Panama City Beach were slightly higher in December when compared to December of 2007. Thirty-four condos sold in 2008, compared to the twenty-seven (non preconstruction) sales the prior year. Thirty additional condos sold in 2007 that were sold as a result of preconstruction closings at Tidewater. Origin at Seahaven put roughly 27 condos under contract during their auction in December. We can expect those contracts to close thru the month of January. It is notable that I do not count preconstruction sales in my monthly sales comparisons. I do this to show a normal absorption rate in the market.
Sterling Breeze sold its remaining developer inventory in December. Marina Landing followed suit with its remaining developer units in January. Foreclosures and short sales are now controlling the market. Condominiums where developers tried to hold pricing at preconstruction levels are starting to see short sales and foreclosures by the original preconstruction contract holders who did close. We continue to see prices at specific condominiums decline because of this. Even with the lower prices, the absorption rate does not increase. After all, there are only so many people looking to purchase condos in a given month.
Posted by: chris
on Jan 20, 2009
The Panama City Beach condo market realized its second bulk condominium building purchase today. Marina landing closed the fifty four remaining developer units today. Marina Landing condominium stands sixteen stories and holds eighty seven bayfront units.
We have had bulk buyers looking at Panama City Beach condominiums for several years now. In most cases it becomes a three party negotiation between the buyer, seller and the bank. Banks tended to be the largest obstacle in these transactions. They were not willing to take the write downs that would be needed to find a bulk buyer.
While Marina Landing is only our second bulk purchase, it will not be the last. We have a different condominium in negotiations right now. We are likely to see a few more bulk purchases as we move thru this real estate market.
