St Petersburg Florida skyline and condos

Finding the right price for a downtown condo in StP etersburg is an interesting process. Here are two different approaches happening right now:

SignatureP lace is a 244 unit condo that began closings last June. Approximately 100 condos had sold by the end of the year. Individual unit sales are on hold as it’s been announced that 35 units are being auctioned on March 7th. It’s an absolute auction, with a minimum bid on each of the units. Minimums range from $135,000 to $400,000+.  Once those are sold, over half of the units in the building will have been sold. We’re assuming that the auction prices will determine the sale prices on the remaining units. In the last couple of weeks thousands of people have visited Signature Place to look at the condos.

400 Beach had 18 units (out of approximately 100 since the others had already sold) that were part of a foreclosure of Opus South, which had used these units to cross collateralize another project. Speculation continued for some months after the foreclosure sale. Last week the lender announced prices on these 18 units. 10 went to contract in the last 9 days and today they raised the prices on the remaining 8 units by 10%.

This shows that there are indeed buyers out there, ready and able to buy – they just want to find the right price.

400 Beach releases last 18 condos

400 Beach, luxury condo in downtown St Petersburg, has been the subject of speculation since Wachovia foreclosed on the 18 unsold units. We’ve had lots of questions: will they be marketed individually or as a package? What will be prices be?  Today some of those questions have answers. Wachovia has hired Smith & Associates to represent them in the sale of these units and they will be listed in the Multiple Listing Service on Monday, February 22nd. Prices will be released at that time. You can check back at this blog, or you can ask me to email you the units and prices on Monday.

This week prospective buyers who gave Letters of Intent on units in the building will have an opportunity to make a revised Letter of intent only on the unit or units they chose previously. Any not sold by Monday will be released to the public.

That’s the second big announcement; the first was that Dale Chihuly will open a 10,000 sq ft gallery on the ground floor by July 4th of this year.

Contact The Simms Team for more information.

400 Beach luxury condos in downtown St Pete

The 18 unsold condos at 400 Beach still owned by the developer when Opus South filed for bankruptcy will be owned by the lender, Wachovia Corp, which is now part of Wells Fargo, according to a news release by the Tampa Bay Business Journal.  Redus 400 Beach LLC had the winning bid of $9 million at the October 1st auction.  The deal is expected to close by October 16 and Wachovia will still have to decide if it wants to sell the units individually or in bulk. The condos range in size from 2,395 sq ft to a 7,000 sq ft penthouse.

First, the only effect on the current owners (since the developer has less than 20% of the total units unsold) should be minimal if they aren’t planning to sell right away. Prices are likely to decline with the sale of these last units, which will affect the current owners trying to sell their units, and will probably have a spillover effect on the Parkshore Plaza condo sales. For those living there, they should continue to enjoy their downtown lifestyle and look forward to some new neighbors.

Second, as far as the unsold units, Smith & Associates, who has been handling sales for Opus, has been soliciting nonbinding offers on the remaining 18 condos. In fact, we have clients with an offer on one of them. We hear that there are multiple offers on some of the units, and that nearly all of the units have an offer. That said, there’s no time frame for when (or if) they’ll get a response, since that’s up to the bankruptcty court. It’s interesting that Smith has removed all but one of the condos from the MLS.

We also hear – though I missed seeing it – that the Wall St Journal had an ad for an upcoming auction – a bulk sale – of Opus South properties including 18 units in 400 Beach.

Had a familiar call today. Someone called and wanted to talk about downtown condos. We started by talking about Vinoy Place, which are very nice condos sitting right on Tampa Bay. Unfortunately, the units were too large for this invididual, so the subject went on to 400 Beach. As with most buyers who have been watching our market, he knew that the developer was having financial difficulties. He wanted to know if 400 Beach was a safe investment. As a Realtor, I cannot give investment advice, so I just spoke about my thoughts on the project.

Right now a buyer can put in an unsecured offer to the developer.  Then it is submitted to the bank for approval.  It is possible that some buyers will get some very good deals out of it.  What about the condo association, is it strong?  The developer still owns less than 25% of the units.  That means over 75% are owned by other homeowners who are just as concerned about keeping the condo association solvent and financially healthy.  If you are trying to buy low and flip quickly, I wouldn’t recommend this building (or any other in today’s market).  But if you plan to live in it for a few years and enjoy the great downtown St Petersburg, this could be a golden opportunity for you.

If 400 Beach is not your cup of tea, Signature Place opens next month, and Ovation follows soon after.  Lots to see and plenty to choose from.

Usually I sleep very well, but from 4 a.m. on this morning, I could not get downtown condos out of my mind.  Can’t explain it, maybe just because so many conversations at the office lately have been on the topic.  I keep telling clients about the great deals at Signature Place if you want to get into a stunning new building at a low cost.  The building should be finished this month and owners start closing on the units next month.  Will be nice to see some real activity in the building other than construction crews.

This week lots of talk about 400 Beach and the financial situation of its developer.  If you like modern and want a view of Tampa Bay, this is your chance since they are taking unsecured offers on all the units still unsold.  Don’t know what they will accept, but if you loved the $850,000 unit, you could offer $550,000 and see what they say.  No money down and no commitment…could be a great opportunity.

Then my mind would wonder off to Vinoy Place.  I want to sell one unit that I think is special.  Had some clients that I thought were very interested…turned out the “buyer” was just showing off for his girlfriend and was in no position to buy.  Oh well, we keep trying.  But one of these days I am going to find the right buyer for the unit.  We actually had clients in it years ago, but had to sell when they moved overseas.  They still miss the unit.  On the 5th floor with great views.  The seller just lowered the price $100,000.  Someone is going to get a good deal.

Don’t know why these buildings were keeping me from sleep this morning, but they were.  One of the nice things about our office is that I can see all of these buildings from out front and when I am discussing them with clients, I can just take them outside and point to them all as I go over the pros and cons of each.  Because if you know me, you know I like to talk, and I love to talk about real estate, St Petersburg, and my family.

Opus press release
Robert Trigaux on Opus South Bankruptcy
Opus South Chapter 11 bankruptcy filing spells market exit

4/24/09  Followup article on Opus South and 400 Beach in the St Pete Times

The Multiple Listing Service shows 26 condos currently on the market (28%) which includes only 8 of the developer’s 18 units, so there are potentially 36 condos available, which is 39% of the total. Current prices range from $749,000 to $3,900,000.

So far in 2009 only one condo has closed at 400 Beach, selling for $1,200,000. It had 3,306 sq ft, which is $363/sq ft.

There are currently 5 condos for rent in the MLS, ranging from $3,500/month to $5,000/month.  Two of these units are also offered for sale, probably a “whichever comes first” scenario.  During the last year, the Pinellas Realtor Organization Multiple Listing Service shows 12 condos were leased at 400 Beach, ranging from $3,000/month to $5,000/month. Five of these were rented in 2009 from $3,000/month to $4,000/month.

The workshop at 400 Beach

An early morning glimpse of work beginning in the space at the northeast corner of 400 Beach in downtown St Petersburg.  It’s almost like Santa’s workshop – there are no signs. A drafting table with plans is set up in the unfinished space and pipes are being laid. It must be the beginning of 400 Beach Seafood and Tap House, the new restaurant being developed by Steve Westphal of Parkshore Grill fame.

Scheduled to open on February 15th, 2009, this seafood companion to Parkshore Grill should be an instant success with the same ownership and management, the same sidewalk dining across from the park and Vinoy yacht basin.

Click on the photo and see a little more.