Real estate mogul Donald Trump has pulled out of the $300 million, 52-story Trump Tower condominium project in Tampa, according to a lawsuit filed Friday in U.S. District Court.
Trump said in the lawsuit that developer SimDag owes him more than $1 million in unpaid licensing fees. Trump also said SimDag failed to show it had sold enough condos, valued between $700,000 and $6.2 million, to meet contractual obligations to him. Trump was entitled to half the profits of the sale of 190 condos and a licensing fee of $2.8 million.
Trump has ordered the developers to immediately stop using his name on the project.
The loss of the famous name could end the project.
"We could continue without Trump, but I don't know if we'd even want to, " said Eric Fordin of the Related Group, a Miami developer enlisted by SimDag to revive the project.
The project, billed in January 2005 as one of the tallest and grandest towers on the Gulf of Mexico, has been burdened by financial setbacks, legal troubles and the slump in the housing market. Construction stalled in November and the lot is now empty.
The phone at SimDag's Clearwater corporate office was listed disconnected Wednesday. Phone messages left at the company's Sea Isle City, N.J., office and with a spokesman in Tampa were not immediately returned.
www.SOLDTampaBay.com
FINDING AFFORDABLE SUBURBSJob prospects are good, the weather’s warm and real estate deals sweet in the suburbs of cities in the South. BusinessWeek Online has taken a look at the most affordable suburbs in the Southern states, and three Florida cities made the top 25: No. 15, Orange Park (11 miles to Jacksonville), median home price of $234,200; No. 21, Valrico (15 miles to Tampa), median home price of $265,000; and No. 24, Weston (11 miles to Fort Lauderdale), median home price of $420,000. Using data compiled by Sperling’s Best Places, BusinessWeek Online lists the most attractive suburbs alphabetically, taking into account cost of living, violent crime, school test scores and median home prices. Its top five Southern suburbs, their nearest large cities, and their median home prices are: 1. Abilene, Texas (176 miles to Fort Worth): $175,500 2. Broken Arrow, Okla. (12 miles to Tulsa): $194,900 3. Cary, N.C. (11 miles to Raleigh): $242,300 4. Charlottesville, Va. (118 to Washington, D.C.): $304,300 5. Farragut, Tenn. (17 miles to Knoxville): $224,900Source: BusinessWeek Online, Maya Roney (05/16/07)© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688
Inflation trumps housing in Fed mindsWASHINGTON – May 31, 2007 – Concerns about inflation trumped worries about the slumping housing market last month in the minds of Federal Reserve officials who voted to hold interest rates steady.While Fed officials said the downturn in housing was turning out to be more severe than expected, worries about inflation continued to dominate the May 9 discussions among Fed Chairman Ben Bernanke and his colleagues, according to minutes of the closed-door discussions released Wednesday.“Nearly all participants viewed core inflation as remaining uncomfortably high and stressed the importance of further moderation,” the minutes said.The Fed on May 9 left the federal funds rate unchanged at 5.25 percent. It marked the 7th straight Fed meeting – nearly a year – in which the central bank has held the funds rate steady.Many economists said the minutes strongly suggest the central bank may be content to keep rates unchanged for the rest of this year.Financial markets posted strong gains after the minutes were released, reflecting in part investor relief that there were no unpleasant surprises in the discussions among Fed officials.“It will take a significant event to either tighten or reduce rates and right now there is nothing on the radar screen that might be that catalyst,” said Richard Yamarone, chief economist at Argus Research in New York.The Standard & Poor’s 500 index climbed to its first record close in more than seven years, rising to 1,530.22, up 12.11 and surpassing the old record of 1,527.46, set March 24,2000, at the peak of the dot-com technology boom. The Dow Jones industrial average also set a record, closing at 13,633.08, up 111.74 points.Bernanke and his colleagues did express the view in the minutes that the slump in home sales and construction that began last year would last longer than had been expected.“The correction of the housing sector was likely to continue to weigh heavily on economic activity through most of this year, somewhat longer than previously expected,” the minutes said.There also were worries that the impact of housing, which has contributed to a significant slowdown in economic growth over the past year, could grow worse if falling house prices began to crimp consumer spending patterns.“Participants remained concerned that the housing market correction could have a more pronounced impact on consumer spending than currently expected, especially if house prices were to decline significantly,” according to the minutes, which were released three weeks after the Fed meeting, following customary practice.However, concerns about housing were offset by a more upbeat assessment about the prospects for business investment, leaving Fed policymakers to say that the “downside risks were judged to have diminished slightly.”Fed officials said they had not changed their view that inflation remained the biggest risk to the economy.“Most participants continued to expect core inflation to slow gradually, although considerable uncertainty surrounded that judgment and the committee’s predominant concern remained the risk that inflation would fail to moderate as expected,” the minutes stated.The central bank conducted a two-year campaign to raise rates in an effort to slow the economy enough to keep inflation pressures under control. The Fed’s last change in interest rates occurred in June 2006 when it nudged the funds rate up for a 17th consecutive time to its current level of 5.25 percent, compared to a 46-year low of 1 percent for the funds rate when the rate moves began in 2004.Many economists believe the Fed could remain on hold for the rest of this year although some say they’re still looking for one or possibly two rate cuts at the end of 2007 if inflation pressures have moderated by that time and the unemployment rate is rising.On the Net: Federal Reserve: http://www.federalreserve.govCopyright © 2007 The Associated Press, Martin Crutsinger, AP Economics Writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Florida economist predicts housing ready to recoverORLANDO, Fla. – May 31, 2007 – A top Florida economist has declared the housing slump a done deal. “It will take another 18 months or so before closing volumes reach more normal levels, but the worst is behind us,” says Hank Fishkind.Fishkind says the turn-around is important to everyone, attributing housing troubles to the recent 75 percent drop in GDP (gross domestic product). The current 1.3 percent rate is down from the historic 4 percent pace, but Fishkind says that dropoff would go away completely when housing simply returns to normal levels. “With (the number of home) starts below (the number of) closings, the inventory of new but unsold homes is slowly being absorbed,” says Fishkind. “Sales of existing homes are the best leading indicator for national housing markets. April sales were off sharply, falling below 6 million at an annual rate. At these levels it will take 8.4 months to sell all the homes that are for sale. However, prices remain stable. And the sales levels, while down this month, were up sharply earlier in the year.“What all of this means, is that we have seen the worst for housing markets,” Fishkind says.
Mild ‘06 hurricane season has some Floridians again unpreparedPENSACOLA, Fla. (AP) – May 31, 2007 – After eight hurricanes ripped into the state in 2004 and 2005, many Floridians finally started taking hurricane preparations seriously.They bought generators, stockpiled nonperishable foods, stored bottled water and medical supplies. Many fortified their homes with hurricane shutters and cut back nearby trees to ensure limbs wouldn’t become whirling missiles in storms.But public safety officials are worried that an uneventful 2006 season has lulled residents into complacency. That has some counties launching public service campaigns and the state urging Floridians to take the upcoming hurricane season seriously.“People forget pretty quickly after a disaster,” said Ruben Almaguer, Florida’s deputy emergency management director. “We are always concerned about that sense of complacency that develops.”State officials recently conducted a training drill based on a Category 5 hurricane hitting the state with another major hurricane approaching, Almaguer said.“We will be prepared because it’s our job to be prepared,” he said. “I think, even if the forecasters said the there will be no hurricanes because of some anomaly in the moon, sun and Pluto, we will still be prepared.”But in the aftermath of a major storm, officials will be focused on search and rescue, security and public safety, he said“We want to make sure people do simple things like stocking up on food, water and making plans for their pets,” he said.Most Miami-area residents saw what Hurricane Katrina did to New Orleans in 2005 and many lived through Hurricane Andrew in 1992, said Elizabeth Calzadilla-Fiallo, spokeswoman for Miami-Dade County Office of Emergency Management. Andrew, a Category 5 storm, Andrew damaged or destroyed more than 125,000 homes and left about 250,000 people homeless.“Those lessons stay with you for a long time,” she said. “We hope the community is not sitting back and saying last year was a breeze.”Miami-Dade will debut a new hurricane-awareness video this hurricane season that will detail hurricane evacuation zones and survival tips.Escambia County has a new public awareness campaign titled “The First 72 Are On You.” The goal: To encourage residents to stockpile items needed to survive on their own for the first 72 hours after a major storm. The county was hit by Hurricane Ivan in September 2004 as a Category 3 storm, causing more than $4 billion damage in the state and killing 29 here.“Pet food, diapers, anything you would need on a long camping trip. A 72-hour supply is usually how long you will need before emergency centers or stores start opening up,” said Janice Kilgore, the county’s emergency management director.But Jay Lunt, owner of Pensacola-based Folkers Window Company in Pensacola, said his business is down this year. He blames the decline in sales of his hurricane shutters and shatterproof windows on the mild 2006 hurricane season. Fewer homeowners are concerned with storm-proofing their homes, he said.“Things have stagnated now to pre-Ivan levels. There is no doubt our sales have slowed considerably,” he said.Pensacola Beach homeowner Eugene Pathe will evacuate if a tropical storm or hurricane heads his way this year.“Anyone who stays on the beach is a fool,” Pathe said as he swept his driveway on a recent afternoon.People who have experienced a hurricane will always take them seriously, regardless of the previous hurricane season, said Pathe, who had to rebuild much of his home after Ivan.“If you want to live on the beach, you have to take the necessary precautions,” he said.Charlie Schuler, who has lived in a home nearby for the past 23 years, plans to move to a new home 12 miles north of the beach next month – in time for the 2007 hurricane season.He will rent out his beach property.“The research shows the seas are rising and the inevitability and the virility of these storms will continue,” Schuler said.© 2007 The Associated Press, Melissa Nelson, Associated Press Writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed
The pen is mightier than the sword, at least when wielded by Gov. Charlie Crist. Certain real estate items made it through the fiscal year 2007-2008 budget, including new Division of Real Estate positions and proviso language ($400,000). But the residential and commercial wind-loss studies ($1.5 million) as well as funding for the state’s fifth hurricane demonstration house ($750,000 in Manatee County) were vetoed. FAR backed both projects since they could help lead to lower property insurance costs by quantifying the value of mitigation techniques.
TALLAHASSEE, Fla. (AP) – May 29, 2007 – House Democratic Leader Dan Gelber’s suggestion that the $459 million in spending Gov. Charlie Crist vetoed from the state budget be used to cut property taxes is unsound, House Speaker Marco Rubio has now said.“Unfortunately, following your suggestion of using the money saved by the Governor’s vetoes would violate not just a principle of responsible budgeting but also the wishes of the people of Florida as reflected in our state’s constitution,” Rubio, R-West Miami, wrote in a letter dated Friday.“Given sound budgeting principles and constitutional budget restraints, I encourage you to consider other recurring expenses as an opportunity to reduce property taxes,” Rubio wrote.Crist on Thursday signed into law a $71.5 billion state budget after vetoing a variety of spending items ranging from local cultural and recreation projects to a 5 percent tuition increase for university and community college students.The signed budget, though, includes a $545 million increase in the state’s required local property tax for public schools although lawmakers will meet in special session June 12-22 to cut city and county property taxes.In a letter to House and Senate leaders, Gelber also suggested the Legislature in the special session should reduce the state-required school tax in an amount at least equal to the vetoed spending.Rubio wrote that he would “invite discussion of a modification of the class size amendment” to lower the cost associated with smaller classes as one solution to help reduce property taxes.Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tax ID debate emergesWASHINGTON – May 24, 2007 – Legislation proposed by Rep. John Doolittle (R-Calif.) would put a stop to the use of Individual Taxpayer Identification Numbers (ITINs) from the Internal Revenue Service as a way to obtain mortgages for primary residences. The bill, HR 480, requires all borrowers to provide a social security number. Real estate professionals worry that it could have a huge impact on the housing market. National Association of Hispanic Real Estate Professionals President and CEO Tim Sandos says the law would prevent undocumented immigrants in the process of obtaining citizenship from achieving homeownership, even if their status has been disclosed to the government. According to the organization, implementing the bill would result in the loss of $44 billion in mortgages. CityView Chairman and former HUD secretary Henry Cisneros is concerned, meanwhile, that the legislation would put a damper on revitalization efforts in urban communities; and Tampa Bay Builders Association Executive Vice President Joseph Narkiewicz worries about the impact it would have on foreign retirees, inquiring whether “they have to apply for a social security number or maintain dual citizenship to own a primary residence in this country?” Source: Builder (05/07) Vol. 30, No. 7, P. 51; Zurier, Steve
TAMPA - Sarasota County is at the forefront of the green building movement. Hillsborough County is on board, and Pasco County is catching on.
And Tampa?
Compared with other governments in the region, Tampa's is lagging behind a national and regional trend to offer incentives to developers who build environmentally sensitive buildings.
Some council members wish Tampa were doing more.
"Everybody else is getting with it, and I think we need to," Councilwoman Linda Saul-Sena said.
"Green" buildings feature environmentally sensitive designs. Characteristics include large windows designed to minimize the need for artificial light, native plants that don't need irrigation, light sensors and floors made from recycled tires.
Councilman John Dingfelder said he was at a Chamber of Commerce lunch meeting recently and the topic was green buildings.
"I was embarrassed to say that the city was behind the county on this important environmental issue," he said.
In recent months, the city has taken several environmentally friendly steps. It launched a pilot hybrid vehicle program, for example, and Mayor Pam Iorio last week showed off her new hybrid car, a Key-lime green Toyota Camry. The city also has assembled a "Green Team" to focus on areas such as water conservation and recycling.
The Tampa Museum of Art plans to build a green roof - lush with landscaping - at its new building.
But whereas other governments are offering incentives to developers who build green buildings, Tampa is not.
This month, Dingfelder asked his colleagues on the council to support his motion to ask the council attorney to craft a green development resolution similar to one in Sarasota County. The Sarasota resolution, passed last year, lets the county offer fast-track permitting for developers proposing green buildings, among other incentives.
"It doesn't cost the city any money," Dingfelder said. "As a start, it's the least we can do."
Councilman Charlie Miranda was the first to balk.
"I don't think if I went to an emergency room I would get special treatment because I'm a council member," Miranda said. "You wait like everybody else. I don't believe in preferential treatment."
Council Chairwoman Gwen Miller - who said during her re-election campaign that "green makes you happy, green makes you smile" - questioned the wisdom of fast-tracking permits.
If the city is "moving people ahead and somebody jumps ahead of you, you are going to get angry," Miller said. "They are going to find out, why did that person move up? And everyone can't afford to pay that fee and move up, so we have to streamline to make things move faster."
And Councilman Tom Scott said the city has other priorities.
"Affordable housing should take precedent," Scott said. "Affordable housing is more important. It's affecting your work force."
Miranda later said the city might want to create two lines in the permitting office - one for green building applications, one for more traditional requests.
Rather than ask the city's legal staff to start developing an ordinance, the council will hold a workshop on the issue next month.
Concerns about some developers jumping to the head of the line and getting preferential treatment are unfounded, said Paul Radauskas, a building official in Sarasota County.
"That's the whole point of it," Radauskas said. "These buildings are environmentally friendly, healthier, and a better place to live and work. That's why you put them at the front of the line."
Sarasota's private developers have completed at least 20 green houses in the year since the incentive program began, and an additional 1,300 are planned. Developers also have built about 40,000 square feet of green retail and office space; an additional 300,000 to 400,000 square feet is planned.
"Developers wanted fast-track permitting because that meant money to them," said Nina Powers, an education specialist for Sustainable Sarasota, the county department involved in environmental initiatives.
Sarasota County requires all new county buildings to be built using green practices. Sarasota also offers developers incentives to build green, such as expedited permitting and a $1,000 rebate in permitting fees, Powers said.
Sarasota has found that green homes cost about 1 percent more to build than a traditional home. Commercial buildings cost 3 percent to 7 percent more. The energy and water bill savings come in four to seven years.
Hillsborough County this month instituted a policy to encourage residential developers to build green: Building plan reviews will be completed in five working days or less. That compares with three or four weeks without the expedited review, said Mike Allgire, Hillsborough's manager of permit intake and processing.
A task force is looking at creating more incentives, such as reduced parking requirements or increased density. Commercial permitting also could be expedited.
In Pasco County, officials met for four hours this month with representatives from the Gulf Coast chapter of the U.S. Green Building Council in an effort to get moving on green initiatives.
Tampa plans to give developers building in the Channel District the option of asking for a density bonus if they build green.
That provision, however, has not been adopted in a formal code.
In Sarasota County, the North Sarasota Public Library and the Twin Lakes Park Green Office Complex are examples of new green buildings.
They highlight features such as low-flow toilets and low-hanging lights. Lights dim or brighten depending on how much natural sunlight is filtering into the room. Pervious sidewalks and parking lots reduce run-off to better manage stormwater. Carpet and tile are made from recycled material.
If Gov. Charlie Crist signs the energy bill passed by the Legislature this year, all governments will be forced to build green buildings, beginning in July 2008.
In Tampa, Saul-Sena, the council's most gung-ho environmentalist, said she is optimistic that the city will catch on to the green building concept.
"It's going to happen," Saul-Sena said. "If the county can do it, the city can do it."
Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com.
Some do-it-yourself mold test kits are a simple and inexpensive way to uncover a mold problem. But choose carefully, as others are a waste of your money, says mold specialist David C. Straus, a professor of microbiology at Texas Tech University. The simplest and most effective tests, he says, are those that rely on a piece of adhesive to transfer a mold sample to a Petri dish filled with a nourishing growth medium. After the mold grows, the user sends it to a lab where it is identified and evaluated. The lab also provides advice on removal. Cost is about $50. Tests that purport to capture mold from the air are not worth the money, Strauss says, because most homes have a significant amount of mold spores that fly in from the outdoors but don’t grow in the house.
Source: The Wall Street Journal, Laura Johannes (05/22/07)© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688
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Thousands of homeowners in Broward and Palm Beach counties can’t make their monthly mortgage payments and are getting sternly worded letters from lenders who threaten to seize their properties and resell them, likely at a loss.As the housing meltdown continues, analysts predict a surge in foreclosures this year and next that will add to the glut of homes already for sale and further depress property values that have declined since last summer.“It has the potential to get very ugly,” said David Levin, a housing consultant in Palm Beach County.Jayne King, of Delray Beach, battled cancer, diabetes and other illnesses during the past few years. Last year, she and her husband fell behind on the monthly payments on their adjustable-rate mortgage, as she was trying to make a dent in her hospital bills and he was out of work after two car accidents only weeks apart.They filed for bankruptcy, promising to repay as much of their debts as possible. A lawyer worked out a plan with their lender that allowed them to keep their house. “I’m just one of many people caught up in this whole cycle,” said King, 55, a retired teacher and native Floridian.Across the region, unexpected medical bills, rising homeowner insurance, property taxes and other costs of living have plenty of lower- and middle-income consumers on the verge of losing their homes. But experts mostly blame the trouble on unconventional home loans made to risky borrowers hoping to get into houses and condominiums that shot up in value during the housing boom from 2000 to 2005.The number of people facing foreclosure has been building since January.In April, the number of consumers behind on their mortgage payments in Broward County ballooned to 1,135, compared with 248 a year ago, according to Realestat.com, a Plantation research firm. The number of people with late payments also rose sharply in Palm Beach County, from 174 to 814.Actual foreclosures increased in both counties but at a much smaller clip. Homeowners with late house payments typically are at least three months behind and have been notified that their lenders intend to foreclose. People who secured adjustable loans found out that they couldn’t afford the monthly payments once interest rates rose.Some of those owners avoided foreclosure by selling the homes or refinancing. When the housing boom last year turned into a bust, it caused a glut of properties to sit on the market, and strapped homeowners couldn’t count on fast sales to bail themselves out of trouble.Refinancing isn’t as easy now because home values are flat or dropping and lenders are tightening credit standards as more borrowers with weak credit default on home loans.“A lot of these people, God bless them, weren’t qualified to go into home ownership,” said Lewis Goodkin, a Miami-based housing analyst.Western suburbs hardest hitRealtyTrac of Irvine, Calif., reports that late mortgage payments and foreclosures in South Florida this year are most prevalent in the western reaches of Broward and Palm Beach counties. Not coincidentally, those were the areas flush with homes under construction and apartments converted to condos during the past several years.Many of the people who bought in the western suburbs were short-term investors looking to “flip” properties for quick profits, said Shiela Kiniry, a Fort Lauderdale lender and state director of the Florida Association of Mortgage Brokers. Now they’re stuck with properties they can’t sell and, in some cases, wilting under the strain of paying two mortgages.“I have to believe a lot of those people wanted to jump on the bandwagon while they still had the chance,” Kiniry said. “It seemed wonderful when they put their money down. Unfortunately, the market’s not the same now.”Even those not struggling to make house payments should care about what’s happening, analysts say.Homeowners behind on their mortgage payments typically don’t maintain the properties, which reflects poorly on entire neighborhoods, said Jim Banford, who runs Real Estate Asset Disposition Corp., a West Palm Beach company that sells foreclosed homes for lenders.Once the lenders take back the properties, they’ll reduce asking prices to compete with the record number of homes already on the market, Banford said. “That weighs down the values of all the surrounding homes,” he said.Still, many people can avoid foreclosure, experts say.Felicia Eusebio-Mejia worked two jobs as a registered nurse to afford a house in Miami Gardens last year. She lost her part-time position and fell two months behind on her mortgage payments.She called Home Financing Center, which allowed her to catch up by temporarily reducing the monthly payment and giving her more time to make up the shortfall.“I’m back on track now,” Eusebio-Mejia, 40, said recently.Lenders work out dealsQuickly asking for help is crucial, said Jessica Cecere, head of the Consumer Credit Counseling Service in West Palm Beach. “If you wait, you’re not in a position to bargain,” Cecere said.Her office is advising more than twice as many people on foreclosure prevention this year than last. Counselors are telling clients that if they contact their lenders within 30 to 60 days of falling behind, they might be able to refinance, stick missed payments on the end of their loans or negotiate other repayment plans.If that doesn’t work, some lenders are willing to accept short sales in which the homeowners sell the properties for less than they’re worth. As a last resort, deeding the homes back to the lenders avoids the stigma of foreclosure.Lenders would much rather work out deals than take their properties because the foreclosure process is time-consuming and expensive, Cecere said.“People should call their lender right away, or call us,” she said. King said many consumers may be too proud or embarrassed to discuss their financial problems. “People don’t like to talk about their finances because they’re private,” she said. “But the more people who talk about it, the more we can work on positive solutions.”Copyright © 2007 South Florida Sun-Sentinel, Paul Owers. Distributed by McClatchy-Tribune Information Services
Mortgage Rate Trend Index
Look for mortgage rates to rise over the next 30 to 45 days, according to mortgage industry experts polled by Bankrate.com this week. A plurality (46 percent) of the panelists predict rates will rise; 23 percent think mortgage rates will fall, and almost 31 percent think rates will remain relatively unchanged.
Crist: Cuts won’t hurt storm responseFORT LAUDERDALE, Fla. – May 17, 2007 – Gov. Charlie Crist vowed Wednesday that any eventual property-tax relief would not compromise state or county efforts to help Floridians prepare for and respond to hurricanes or other disasters.“People should not be worried about that,” Crist said during the Governor’s Hurricane Conference, which runs through Friday at the Broward Convention Center in Fort Lauderdale.“We need to drop property taxes and drop them like a rock, and we will,” Crist said. “But local governments will do what local families do – they will prioritize their spending.”“The essentials, the priorities, will be funded,” he said during a news conference that preceded his speech to about 3,000 emergency managers, forecasters and others at the conference.Crist’s comments came as legislators prepared for next month’s special session to seek agreement on tax relief.Several emergency managers have expressed concern that revenue reductions could cut funding for disaster preparedness and relief operations.R. David Paulison, director of the Federal Emergency Management Agency (FEMA) and a native of South Florida, told the group that his operation is ready to work in partnership with local officials.At the same time, however, he sought to recruit some of them to fill hundreds of openings in FEMA.“I need your help,” said Paulison, who still has a house in Davie. “I want you to come work for FEMA, where we’re hiring great people.”And, as he has in the past, Paulison emphasized that the government cannot help everyone immediately after a disaster and that people need to take responsibility for their own care.He cited Hurricane Wilma, which provoked thousands of people to line up for food, water and ice within hours of its passage through South Florida in 2005.“We have got to turn the people of this nation back to helping themselves,” he said, earning an ovation.Copyright © 2007 The Miami Herald, Martin Merzer. Distributed by McClatchy-Tribune Information Services.www.SOLDTampaBay.com
By SUSAN M. GREEN The Tampa Tribune
Published: May 16, 2007
RIVERVIEW - When Al Carapella first saw it, the project site was just an ordinary ranch-style house in a big grassy field behind the "for sale" sign.
Across the street was a forest, and not far from that, a dairy farm. Older houses and mobile homes on large lots flanked the site on the east side of Balm-Riverview Road. Even so, Carapella knew Riverview was a hotbed of housing development, and he figured all those families moving in would need more than next-door neighbors.
"You have all these subdivisions being built and developed, and you see that there's a strong need for professional services," Carapella said.
The county agreed to rezone the four-acre site between McMullen and Rhodine roads to allow an office complex. Carapella bought it in January 2005 and put up a sign announcing that Balm Professional Center would be "coming soon."
But getting his site plan approved took nearly two years. Finally, in October, the tractors, bulldozers and mechanical shovels moved in, demolished the house and started preparing the site for construction.
Carapella plans to move his realty and mortgage business from an office on Bloomingdale Avenue in north Riverview to Balm Professional Center in about a month, when the first building is completed.
"I'm following the growth in Riverview," he said. "I think we hit a pretty good central location."
To the north are entrances to such subdivisions as Rivercrest and Creek View. To the south are Panther Trace and Summerfield.
Pediatrician Heather Thole, who opened Wee Care for Kids in a strip center near Summerfield more than two years ago, bought a lot in the complex. A 5,000-square-foot building under construction is expected to become home to her practice this summer, Carapella said.
He said he hopes to develop two other lots for 5,000-square-foot office buildings. A lot at the front of the park is reserved for a customer who wants to build up to 10,000 square feet.
Carapella said a dance studio owner had expressed interest when he was applying for the rezoning. Because of delays in getting construction under way, he lost that potential buyer, but the site remains approved for a similar use, Carapella said.
The buildings will nestle around a large parking area. Access will be from Balm-Riverview Road, Carapella said. He said he decided to name the center for Balm, the community that Balm-Riverview Road links to Riverview.
He estimated that land acquisition and site preparation cost about $900,000. He expects the project to be worth about $6 million when construction is completed.
The complex is Carapella's first large-scale development project, and it hasn't been without challenges.
"The whole slowdown in the economy didn't help," he said. "I got in before everything sort of slowed down."
Carapella has lived in the Valrico area since 1978. Besides owning Hunt Realty Group and H & M Mortgage Co., he operates Bloomingdale Pizza. He and his family have operated other pizza and Italian-style restaurants in the area.
Before entering the real estate business eight years ago, Carapella said he dabbled in construction, including working on a small residential project and a 2,500-square-foot office on Windhorst Road in Brandon.
He hired Fritz Heibel of Brandon to oversee the project. Heibel said he has spent many years working in the Middle East, most recently setting up housing and amenities for soldiers in Iraq.
For information about Balm Professional Center, call (813) 661-7653 or (813) 294-6545 or e-mail acarapella@aol.com.
HOW SHOULD WE GROW?Florida will continue to grow, but without adequate planning, what will the state look like? Be part of the solution and attend FAR and Florida Atlantic University’s Catanese Center for Urban and Environmental Solutions’ Smart Growth one-day conference on Friday, June 22, in Tallahassee. Conference speakers will discuss new urbanism in Florida with hands-on examples currently under development in the state’s capital. The conference runs from 9 a.m. to 4:30 p.m. Lunch is included in the cost and is co-sponsored by the Tallahassee Board of Realtors. Pre-registration is preferred; the fee is $35 in advance (on or before June 15, 2007). To register, call (800) 669-4327 or go to: http://www.floridarealtors.org/LegislativeCenter/SmartGrowth and download the full PDF brochure. Still have questions? Call FAR's Office of Public Policy in Tallahassee at (850) 224-1400.
U.S. housing construction posts small rise while industrial production posts large increaseWASHINGTON (AP) – May 16, 2007 – Construction of new homes in the United States posted a small gain in April but applications for building permits plunged by the largest amount in 17 years, a dramatic sign that the country’s housing industry is still in a steep slump.The U.S. Commerce Department reported Wednesday that construction of new homes and apartments rose by 2.5 percent in April compared to March, to a seasonally adjusted annual rate of 1.528 million units.Even with the improvement, housing construction is 25.9 percent lower than a year ago. And in a worrisome sign for the future, builders cut their requests for new construction permits by 8.9 percent in April. That was the sharpest drop since a 24 percent fall in February 1990, another period when housing was going through a significant downturn.In other economic news, the Federal Reserve reported that industrial output rose by 0.7 percent in April, a stronger-than-expected showing that reflected a continued rebound in manufacturing and a big jump in output by the nation’s utilities. Output had fallen by 0.3 percent in March.Manufacturing increased 0.5 percent in April following a 0.6 percent rise in March, with production of autos, computers and electronic equipment showing big gains. Output at utilities surged by 3.5 percent as electric power generation during a colder-than-normal April boosted demand for energy to heat homes.The 0.7 percent rise in overall production was more than double the 0.3 percent gain that had been expected. While analysts said the figure was heavily influenced by the big jump in utility output, they were encouraged by the broad-based gains in manufacturing, which had been struggling in previous months with the overall economic slowdown.Housing, which had enjoyed record sales in both new and existing homes for five straight years, saw the boom end dramatically in 2006 with many formerly red-hot sales areas suffering big declines in sales and prices.The slump in housing has been a drag on the overall economy, pushing business growth down to a lackluster 1.3 percent in the first three months of this year, the weakest performance in four years.A survey by the National Association of Home Builders released on Tuesday indicated that there are more troubles to come as builder sentiment fell to a reading of just 30, matching the low point in the current downturn set last September.David Seiders, chief economist for the home builders, said the survey found that the rising defaults in the subprime mortgage market were adding to concerns about the ability to reduce a huge inventory of unsold new homes and causing builders to cut back on their plans.“We’re now projecting that home sales and housing production will not begin improving until late this year and we’re expecting the early stages of the subsequent recovery to be quite sluggish,” Seiders said.The 2.5 percent rise in construction starts in April reflected a 1.6 percent increase in single-family homes and a 6.3 percent jump in construction of multi-family units.By region of the country, the increase was led by a 31.3 percent surge in the Northeast and a 7.8 percent increase in the West. Construction activity was down 14.2 percent in the Midwest and 0.1 percent in the South.Copyright © 2007 The Associated Press, Martin Crutsinger, AP Economics Writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
NAR: First quarter metro home prices, state sales show stabilization
When built out, Sunrise would have 4,800 homes, 75 motel rooms, 365,000 square feet of retail space, 50,000 square feet of offices, a golf course, clubhouse — all on 1,385 acres east of Interstate 75 and State Road 50.
Joseph Tew, a Clearwater attorney representing Sunrise, laid out for commissioners a master plan showing how area roads, parks, utilities, schools and other infrastructure improvements would accommodate the proposed community.
Because it was a workshop, commissioners did not vote on the plan. Instead, they directed planning staff time to meet with the developer and report back by the July 24 public hearing, when the board will consider approving Sunrise as a development of regional impact (DRI).
Monday’s workshop gave county commissioners a chance to see if the developer was “conceptually on the right track,” Planning Director Ron Pianta said.
Tew said he would be ready with a finished product in time for the July 24 deadline.
“We’re at least 90 percent to the goal line,” Tew said.
As first reported in Hernando Today this week, Sunrise has agreed to donate 75 acres of land along Kettering Road to the school district for the purpose of building a new school. The acreage would be divided into two parcels.
Some of the road improvements include the four-laning of Kettering Road, creating a two-lane Lockhart Road extension, adding four lanes to the Sunrise Parkway, adding two more lanes (for a total of six) to S.R. 50 and making off-ramp improvements to I-75.
The developer is also planning on building several new roads leading into the community.
Total cost of roadway improvements is $34 million, with the developer paying his proportionate share to offset costs.
Because Sunrise and Hickory Hill are both located in the planned development project surrounding I-75 and S.R. 50, the two communities are similar in concept and would tie into the same road network, Tew said.
“At the end of the day, we’ll all be using the same facilities and driving the same roads,” Tew said.
The developer and planning staff will also hammer out a development order that will serve as a blueprint for the development, according to Assistant County Attorney Jeff Kirk.
“We’ll be working closely with planning in terms of creating a development order that protects the county,” Kirk said.
Authors Bert Sperling and Peter Sander have named Gainesville the best place to live in the United States, identifying the college town as No. 1 out of 375 metropolitan areas in the latest edition of their book, “Cities Ranked & Rated.” Despite hot and humid summers, and a high rate of violent crime, Gainesville scored in several other areas, with the authors lauding its “strong concentration of young people and active retirees.” Sperling and Sander considered cost of living, quality of life, climate, commute times, affordable housing, crime, growth and sprawl in calculating rankings. The remaining cities in the top 10 are, in order, Bellingham, Wash.; Portland-Vancouver-Beaverton, Ore.-Wash.; Colorado Springs, Colo.; Ann Arbor, Mich.; Ogden-Clearfield, Utah; Asheville, N.C.; Fort Collins-Loveland, Colo.; San Luis Obispo-Paso Robles, Calif.; and Boise City-Nampa, Idaho.
Source: USA Today (05/07/07) Minzesheimer, Bob© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688
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This week, mortgage experts polled by Bankrate.com say, “Be patient.” Only 17 percent predict a rate increase over the next 30 to 45 days and 28 percent forecast a drop. The remaining 58 percent predict no change.
By PAUL SWIDERPublished May 2, 2007
Though the housing market is still stalled, planning for new commercial and mixed-use developments continues with a new proposal being floated just north of downtown.
"The lull is exclusive to residential, " said David Dunbar, CEO of Synovus Bank of Tampa Bay, which is about to sell its property at Fourth Street and Third Avenue N to Miles Development for a new complex. "Commercial development hasn't slowed at all."
The deal hasn't yet closed and Miles is still performing its due diligence, but the Atlanta firm with a taste for St. Petersburg already has some ideas for the block. Jason Perry, the company's vice president of development, said he anticipates three phases of building: 1 a 12-15-story office building, 130-room hotel and a parking garage to connect them on the north of the property; 2) an upscale urban grocery store on the southeast corner; and 3) a rehab or reconstruction of the existing bank building on the southwest corner as either more office space or possibly condominiums.
"It's very much in pencil right now, " Perry said. "But we really love that site, been watching it for some time now."
Perry said the first phase could be completed within two to three years, but the rest is further out. Still, the planning mirrors that of other recent announcements that show developers are sharpening their pencils for what they see as an attractive downtown market.
Last week Jimmy Aviram and Tibor Hollo discussed plans to build nearly 1-million square feet of hotel, condo and shopping in two towers on the Tropicana block at Second Street and Central Avenue.
Mansion by the Bay on Fourth Avenue N may soon be replaced by a 21-story condo project that goes to the Environmental Development Commission today.
And Fuel Group International will appear before the EDC on May 16 seeking approval for a 32-story hotel and condo building on Fifth Avenue and First Street NE.
"St. Pete will attract the comeback faster than anywhere else, " Dunbar said. "No other city has its assets and any developer can see that."
Dunbar said he didn't need to sell the property but it was underutilized and he wanted Synovus to be part of a showcase project on the site. The first-phase office building will likely be named Synovus Bank Tower and continue to house the bank's wealth management and commercial operations. Synovus is also building a corporate headquarters for senior management and a new branch on Roosevelt Boulevard and 28th Street.
The new Miles development will be an early foray into north downtown, an area with more plans than action the last few years.
"There hasn't been a whole lot of development near that site, " Perry said. "But that's the Miles MO, to be somewhat pioneering."
Miles recently opened its 114-unit 1010 Central project, a condo building well west of hotter development areas. It is nearing completion of The Sage, a 112-unit project southwest of downtown. In August, the company will break ground on a 159-unit apartment building at 1701 Central next to Interstate 275.
Perry said the company remains very interested in the city and is interested in larger projects like the estimated $170-million Synovus concept.
He has land to choose from. The 3.7 acres near Harborage Marina that was to be Windward is for sale, as is the 1.6 acres that were to be CitySide at Third Avenue N and Eighth Street. Land slated for LaVista is also for sale at Third Avenue N and Fifth Street, and a 2-acre parcel set to be the Edge is for sale at Fourth Avenue S and Fourth Street. "We're still looking for opportunities, " Perry said. "We're very bullish on St. Pete."
Paul Swider can be reached at 892-2271 or pswider@sptimes.com or by participating in itsyourtimes.com .
The number of U.S. millionaire households has risen to a record high of 9.3 million as of mid-2006, up 5 percent from 2005, according to TNS Global’s annual Affluent Market Research Program. The millionaires’ mean net worth, not including their primary residence, is $2,167,167 with investable assets of $1,442,841. Their median age is 58 and 45 percent are retired. Forty-six percent own investment real estate, such as a second home, third home, rental properties and undeveloped land. Thirty-four percent have a first mortgage on these residences and 25 percent have second mortgages on these additional residences. The TNS study identified 10 counties with the highest number of millionaire residents: Ranking No. 1 is Los Angeles County with 268,136; No. 2, Cook County, Ill. (171,118); No. 3, Orange County, Calif. (116,157); No. 4, Maricopa County, Ariz. (113,414); No. 5, San Diego County, Calif. (102,138); No. 6. Harris County, Texas (99,504); No. 7, Nassau County, N.Y. (79,704); No. 8, Santa Clara County, Calif., (74,824); No. 9, Palm Beach County, Fla. (71,221); and No. 10, King County, Ore. (68,390).
Source: Associated Press (05/01/07)© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688
By SHANNON BEHNKEN The Tampa Tribune
Published: May 1, 2007
TAMPA - Condos For Sale. The loud signs flaunted from street corners across the Bay area are meant to grab the attention of potential buyers.
Developers advertise slashed prices and promise flat-screen TVs and computers. They put up inflatable gorillas and even pay people to dress as superheroes at busy intersections.
All the hype hasn't worked.
The white-hot trend to change apartments into condominiums has long passed, and developers that overestimated the demand have found themselves with half-empty complexes. Some that tried converting them back into apartments aregrappling with foreclosure. Others are turning in their keys, leaving the lenders with unwanted residential properties they're trying to sell themselves.
For individual buyers who purchased condominium units, they now must deal with uncertain property values and a less-than-promised quality of life: living in the middle of a sparsely filled complex where the majority of their neighbors rent.
Eddie Flom, who has worked with developers on conversion projects in the Tampa Bay area, sums up the situation in one word: greed.
"It's the oldest thing in the American economy," said Flom, of Flom Equities LLC. "Greed, greed, greed overcomes wisdom."
Apartment-to-condominium conversions started locally in the late 1990s and heated up in late 2004 as some developers saw a way to get around high land costs and offer more affordable homes. Units at some apartment complexes, particularly the higher-end ones, sold out quickly.
A handful of developers made so much money, Flom said, that others took notice and jumped onboard. Some of the less experienced developers paid too much for the land and couldn't sell condos for enough to make a profit. "People were trying to make a quick buck off the boom," he said. "Now Tampa is in complete saturation mode."
By 2005, the conversions led to a shortage of apartments as 18,000 rental units were turned into condos, and the occupancy rate at the remaining apartment complexes swelled to 98 percent, according to commercial real estate firm Cushman & Wakefield.
During the same year, 68 apartment complexes were purchased for conversion in the Bay area, up from 11 in 2004, according to New York-based Real Capitol Analytics, which tracks real estate trends. The conversion craze dropped off just as quickly as it heated up. In 2006, 25 complexes were sold for conversion. So far this year, there have been zero.
"It's going to take at least a couple of years to burn off all the supply we have," said Dan Fasulo, a company spokesman.
Developers aren't the only ones feeling the pain. In some cases, lenders are on the hook for loans on complexes where sales have been slim.
At CrossWynde Condominiums, an apartment conversion on U.S. 301 near Brandon, 60 percent of the 453 units are owned by the lender, Mountain Funding LLC of Charlotte, N.C., according to county property records.
The developer, Boca Raton-based Bay Communities, bought the complex and one other in Tampa, The Hamptons at Tampa Palms. Sales were slow, and the developer tried to lease the unsold units. In December, as both complexes headed toward foreclosure, Bay Communities sold them back to the lender for the mortgage amount.
Arthur Nevid, managing director for Mountain Funding, said the lender plans to hold the complex until the real estate market turns around. In the meantime, he said, it has hired a marketing and sales team to sell what it can and lease the rest.
"The market was real hot, and then it hit a wall very quickly," Nevid said. "Two years ago you'd sell 10 units in a day. Now if you sell 10 in a month you've had a good month."
Sales are picking up some, though, he said, citing 13 purchases at CrossWynde in the past three weeks. Nevid said his company, a private lender, is in a good position to hang on to the properties because it has real estate experience. Traditional banks, he said, are more likely to auction off failed conversions.
In Pinellas County, lenders have begun foreclosure on three complexes purchased for conversion, Seaside Villas, Shore Club Pasadena and South Pasadena.
The developers planned to remodel the waterfront complexes and even have pending contracts from some buyers. Construction at all three complexes has halted.
Wachovia Investment Holdings LLC and Fremont Investment & Loan claim the developers defaulted on $90 million in mortgages.
It's difficult to pinpoint how many apartment-to-condominium conversion complexes have gone into foreclosure because public records classify complexes as either "condominium" or "apartment" and don't show which condos used to be apartments.
Mike Kane, chief executive of ForeclosuresDaily.com, said his company's data show hefty foreclosure increases for apartment complexes.
In January, there were 286 apartment complexes in foreclosure, up 267 percent from 78 in January 2006.
The misfortune of some developers could be an opportunity for others. As some try to unload properties to avoid foreclosure, companies such as The Cypress Co. LLC in St. Petersburg are waiting on the sidelines.
Blake Whitney Thompson, vice president and general counsel for Cypress, is looking into buying distressed properties, including conversion complexes, and holding them until they'll sell for a profit.
Thompson said he has hired Flom, the conversion consultant, and is considering buying a few area condo conversion complexes.
But, he said, he doesn't want to get into the same dead-end situation that some of the other developers are in. So he's picky.
Some developers going into foreclosure are in a bad spot, Thompson said. They can't simply convert the whole complex back into apartments and then sell the property because individuals now own some units. Another problem, he said, is condominium bylaws require developers to keep property in good condition and to set aside a reserve for future expenses such as a new roof.
"I won't buy a partially converted project without working it out with the lender," he said. "And I won't buy unless we can hold on to it for 10 years. You cannot forecast when this market is coming back."
The slow market hasn't been bad for everyone. With prices dropping on conversions, more buyers have been able to afford a home, said Jim Bobbitt, senior vice president at commercial real estate firm CB Richard Ellis.
"With single-family home prices skyrocketing, it's helped people who want affordable, maintenance-free living," Bobbitt said.
Although the trend squeezed some renters out of apartments a few years ago, it's helping them now. Converted condos for rent are plentiful, leaving renters in a good position to negotiate a deal.
Amanda Gates, for example, knew her landlord bought three condos at CrossWynde and needed tenants fast. He wanted $850 a month for the one-bedroom condo. Gates and her husband talked him down to $700.
"We knew he didn't have anyone else," Gates said. "And price was very important to us. We're just starting out."
Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken @tampatrib.com.
HOME ALONE
The number of homes empty and for sale rose for the tenth straight quarter to a record rate of 2.8 percent, the U.S. Census Bureau reported last week. The number has been climbing steadily since the fourth quarter of 2004, when it stood at 1.8 percent, says William O'Donnell, U.S. government bond strategist at UBS Securities. "This is more pressure on the housing market and shows that the path to recovery is going to be that much longer," he says. "We just think it speaks volumes for the speculative nature of the housing market." The homeowner vacancy rate tracks the share of homes that are for sale but unoccupied.
Source: Reuters News (04/27/2007)© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688
Crist signs bill giving hurricane prep tax break
Gov. Charlie Crist on Monday signed a bill into law making certain hurricane and severe weather preparedness items tax-exempt from June 1 – the first day of hurricane season – through June 12. “The smart thing to do is just be ready for it, go out and make the kind of purchases that make you more safe and your family more safe, and so I appreciate the sponsors’ hard work and the commonsense nature of this kind of legislation,” Crist said. “It is just the right thing to do.” Citizens have a civic duty to prepare for storms by stocking up on supplies and developing emergency plans, said Craig Fugate, director of the state Division of Emergency Management. Help with such planning is available on the agency’s Web site, www.FloridaDisaster.org. The tax-exempt items include radios with “specific area message encoding,” a provision aimed at boosting readiness for tornadoes. The items covered by the tax break include flashlights up to $20, weather radios up to $75, tarps under $50, gas cans or tanks, batteries, cell phone chargers, coolers and generators up to $1,000. This is the third consecutive year for the tax break on hurricane supplies. State economists have estimated the bill would cost the state about $20 million in lost revenue.Copyright © 2007 The Associated Press, Bill Kaczor. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Associated Press writer David Royse contributed to this report.