Pier into the future: After five years, new Gulf State Park Pier set for July 23 opening

Wednesday, July 01, 2009 By JEFF DUTE Outdoors Editor

Shortly after Hurricane Ivan destroyed the Gulf State Park Pier in September 2004, many fishermen began counting down the time until a new pier would be built.

On Tuesday, Alabama conservation department officials announced that the clock would officially reach 00:00 at 9 a.m. on July 23. That's when Gov. Bob Riley is expected to cut the ribbon to open the 1,520-foot-long pier after more than 18 months of construction and a bid cost of $16.2 million.

"As you know, good things come to those who wait. We had hoped to open the new Gulf State Park Pier this spring, but Mother Nature decided otherwise," state conservation commissioner Barnett Lawley said. "That said, the new pier will be the longest on the Gulf Coast and will reach more than 1,500 feet into the Gulf of Mexico.

"This facility will provide unparalleled educational opportunities for students and teachers alike to view and experience first-hand the intricate ecosystem that thrives on Alabama's coast. It will also give Ala bamians and visitors unequaled access to great sightseeing along our beautiful beaches and shore line. The wait will be well worth it."

That also appears to be the sentiment among fishermen who regularly fished the old pier, said David Thornton, who spent 35 years learning to catch fish along its weathered rails. Thornton said he has kept in touch with many of the people who shared those rails with him.

"I think the consensus is that it's been worth the wait," Thornton said. "But it sure has been a long time - more than four years - and that time hasn't gone by quickly.

"The pier will be a very consistent, accessible place to fish and there's a lot of camaraderie that developed over time on the old pier, and it's that social aspect of fishing on the pier that we've been missing, too."

Thornton predicts the pier will open up opportunities to catch fish species that were out of reach for the old pier, which had an end octagon in about 12 feet of water. The new pier's end will be in 26 to 28 feet of water.

"There are a bunch of us who are eager to give a shot and get a taste of what we knew we were missing. The old pier was always a good inshore pier because of the shallow water and there were good pelagic (migratory) opportunities at certain times of the year," he said. "Now, it's like there are two piers out there. We'll still have the good inshore fishing, but we'll also have a whole new pier outside that second (sand) bar."

A "soft opening" is planned a few days before July 23, said the conservation department's chief engineer, Terry Boyd.

"We don't want the governor and a thousand people to be out there and the drink maker doesn't work," Boyd said.

Boyd said parks personnel will begin the process of stocking the concession areas, putting up signs and doing anything else necessary to get the pier ready for fishermen. He added that the state transportation department also must install a stoplight at the intersection of State Park Road and East Beach Boulevard.

"The contractor may still be on site after Friday tying up a few loose odds and ends, but the contractor is not going to be a problem with opening the pier," Boyd said.

Prices to fish the pier have increased across the board, but Gulf State Park assist ant superintendent Trey Myers said it is still a great value.

"The cost of living has had an impact, but the facility is triple what we had with the size of the pier and the amenities out there now," he said. "The cost has gone up on everything, but the pier is still a great value."

Based on the new daily rate of $8, Myers pointed out that the weekly rate of $40 gives the angler two days of free fishing, the monthly rate of $80 results in two weeks free, the $160 semi-annual rate gives four months free and the annual rate of $320 affords a full eight months of free fishing.

Myers said the pier will almost certainly have an impact on the demand for the park's campsites.

"The cabins and cottages stay booked through most of the year, but I'm sure it'll increase the demand on our 496 campsites," Myers said. "With the camp store, new nature center, boat docks and pool and pool house under construction all in the campground, the pier will help re-establish the park as a vacation destination place for people from all over the country."

Beach rentals brisk but last-minute

Sunday, June 21, 2009 By KATHY JUMPER Real Estate Editor

A two-bedroom, two-bath condominium unit on the beach in Gulf Shores that sleeps six: $1,500 to $1,900 a week.

A five-bedroom, five bath Gulf-front house in Orange Beach that sleeps 16: $4,800 a week.

Watching dolphins play in the surf from your balcony: Priceless.

Well, it's not exactly cost-free, but renters do have a great view of the dolphins, according to Sarah Kuzma of Meyer Real Estate, which manages rentals for 1,600 condo units and 300 houses at the Gulf.

It's summertime, and the race is on to keep the rental units booked. "We have 10 weeks to make it happen," Kuzma said.

Rental agencies are open 24-7 to accommodate guests who are following a national trend - booking rooms at the last minute.

"We've had some calling while driving on the interstate" to the coast, Kuzma said. "There are so many last-minute bookings, we can't stay ahead of the paperwork. We have walk-ins all during the night."

Twenty-five percent of bookings at Brett Robinson Real Estate & Development Co. in Orange Beach come within six days of arrival right now, said Brett Robinson's Marie Curren.

"We don't know why," she said, "if it's the economy and they are trying to save money, or just not thinking far ahead."

The peak July 4 weekend is booking now, when it used to book months in advance, agencies said. But no one is complaining, because occu pancy rates are meeting last year's full house.

"We're very excited that our June and July occupancy is equal if not better than last year," Curren said. "We had another building open, and that increased our inventory by 5 percent." Brett Robinson manages 2,057 rental units.

Discounts are available at most rental agencies all summer, ranging from 20 to 25 percent off the rental price.

"Our supply has increased, and our demand hasn't," said Connie Carlisle, director of reservations of Kaiser Realty in Gulf Shores, which has 650 rental properties, and 230 of those are houses. "When you have a lot of new things coming on the market, people are discounting them to get them known, and we have to discount some of the older units to make the rates competitive."

There are 14,090 condo units and 1,954 hotel and motel units in Gulf Shores, Orange Beach and Fort Morgan, according to the Alabama Gulf Coast Convention & Visitors Bureau.

The summerlong Student Life convention at The Wharf's conference center in Orange Beach and a number of large sports tournaments have brought new visitors to the area, Carlisle said. "We are appreciative of the group business coming. We don't mind giving them a better rate to get future business."

Shorter stays

Erik Nist, owner of Alabama Beach Vacation Rentals or ALBVR.com in Gulf Shores, said his company is seeing shorter stays - three or four days rather than a week.

"With the current state of the economy, guests know what's going on, and some request a discount," said Nist, whose firm manages 92 properties. "And some are real bold. We had one offer $700 a week for a house that rents for $4,200 a week. We tell our owners we will do our best to book their unit, but we don't want to give it away."

Still No. 1

Alabama is still the No. 1 state for visitors to the Gulf, followed by Louisiana, Mississippi, Kentucky and Tennessee, agents said. This summer is also bringing more folks from Texas and Arkansas, according to Kuzma.

"We're seeing more who have never been here before, but heard about us. And the coast is also known for its repeat business. It's very important to get heads in beds. Once they are here, we've got them, and they will come back."

/cut/2/cBILL STARLING/ Staff PhotographerPeople crowd the beaches Monday in Gulf Shores. Renters this summer are following a national trend: booking at the last minute. But occupancy rates for the peak July 4 weekend are meeting last year's full house, so Alabama Gulf Coast rental agencies aren't complaining.

Major development planned around Lulu's restaurant

Sunday, June 21, 2009 By KATHY JUMPER Real Estate Editor

Mac McAleer recalls bringing Lucy Buffett to the 27-acre site near the Dr. W.C. Holmes Bridge and hugging the Intracoastal Waterway and saying it would be the home for her new restaurant.

"She said, 'Are you kidding me?'" McAleer said last week, smiling.

Lulu's at Homeport Marina opened five years ago. Last year, 200,000 people came through, and the restaurant did $13 million in food and retail sales, McAleer said. Folks wait up to three hours for a table, listening to live music while sitting at one of three bars or watching their kids play in the mega sandbox.

Sometimes, a visitor even catches a glimpse of Lucy's famous singer- songwriter brother, Jimmy Buffett. (He pilots his own plane to the nearby Gulf Shores Airport.)

"It's been a great partnership with Lucy," McAleer said of the deal with his ex-wife, whom he calls a close friend.

Ambitious project

Now he plans to parlay Lulu's destination status by surrounding the eatery with a 250-room hotel, five-story parking deck, 1,000-seat conference center and a casual fine dining restaurant, retail and office space on Ala. 59 and East 29th Avenue. A new ferry terminal, with room for two high-speed vessels, might eventually take 250 passengers to Biloxi casinos and bring them back again.

He would also like to put a lighthouse, similar to the Middle Bay Lighthouse in Mobile Bay, near the existing marina, and have a bar and deck extend from the lighthouse to the casual fine dining restaurant, which will be located under the Holmes bridge.

"Will it happen?" he asked. "That's my intention. Three groups of investors are presently doing their due diligence."

Partners in the project include his marina management team - son Joe McAleer III and Ken Carter. They plan to either partner with other developers or sell them land.

McAleer, a former top executive at Krispy Kreme Doughnuts, leases the land to Lulu's restaurant and built the adjacent multimillion-dollar, 76-slip concrete floating marina, which is almost leased up.

He presold and planned to build 96 condominium units before Hurricane Katrina, but returned the buyers' deposits after the storm.

The new project has been dubbed Homeport, which was the name of the Buffett's family home on Mobile Bay, said McAleer.

Preliminary plans for Homeport are in front of the Gulf Shores City Council, which must approve a right-of-way relocation on the land.

Transportation epicenter

McAleer views the Homeport location as being an epicenter of transportation, with the nearby airport, the main highway and the waterway.

Gulf Shores Councilwoman Carolyn Doughty said the city rezoned property along the waterway from industrial to resort use several years ago with the idea of developing a tourist center not as vulnerable to Gulf storms as properties on the coast.

"It would give us an alternative," she said. "It would be like a second coast."

Meeting space is in demand at the Gulf, which lost about 45 percent of such space after 2004's Hurricane Ivan, according to Herb Malone, president of the Alabama Gulf Coast Convention & Visitors Bureau. He was glad to hear about the Homeport plans, adding, "We will be even more excited when it goes vertical. Lulu's is a tremendous asset to the area."

Charlie Williamson of Gulf Coast Commercial Realty in Mobile is working with McAleer to put the hotel group together and bring in financing and investor groups. Once the hospitality group is in place, he will work to bring in other venues to enhance the property, he said.

"The big thing was we already had a venue in place that was successful, and we didn't have to start from a piece of dirt," he said. "Lenders are not going to lend one dime on a land deal. He's already got the land, which is an unbelievably huge hurdle.

'Excited about timing'

"We're excited about timing on this," he continued. "We think in eight or nine months we'll see the hospitality industry get aggressive again."

Developers want to have plans finished and permits ready when the market turns, he said. The site engineering and project management is being done by Engineering Development Services in Daphne.

More venues at the Gulf mean more activity for everybody, according to Shaul Zislin, owner of The Hangout on the beach at Alabama 59 and 182 in Gulf Shores, which opened a year ago.

"If they can bring in 50,000 more people a year for their conference center, those guests won't eat at Lulu's every night," he said. "Whatever extra they can generate, we say bring it on."

/cut/p36.3/cPhotos by BILL STARLING/ Staff PhotographerTop: Lulu's at Homeport Marina on the Intracoastal Waterway is seen from the top of the Dr. W.C. Holmes Bridge in Gulf Shores.

Above: Mac McAleer plans to develop the property surrounding Lulu's. He also owns and leases the land for the popular restaurant. His plans call for a 250-room hotel and conference center as well as other venues. He is shown at one of the outdoor bars at Lulu's, which is owned by Lucy Buffett.

/cut/3/cRendering by Nimrod Long & AssociatesThis rendering shows the planned development of the Homeport Marina on the Intracoastal Waterway to be built around Lucy Buffett's popular Lulu's restaurant.

New town born in Baldwin County

Sunday, June 14, 2009 By CRAIG MYERS Staff Reporter

Perdido Beach is officially a town, according to Baldwin County Probate Judge Adrian Johns, and voters there are expected to choose their first mayor and council this fall.

The 2cm HALF-square-mile incorporated area between Palmetto Creek and Soldier Creek includes a full-time population of 558, reported a committee appointed by Johns that completed the count this month.

On Wednesday, Johns issued the order declaring a town of Perdido Beach "with all rights and powers granted by the laws of Alabama to such corporation."

How those rights and powers - including taxation, police protection and building oversight - will be exercised must wait until the seating of the town's first elected leaders.

In Alabama, a town can enact up to 5 mills of property tax and a local sales tax of 1 to 3 cents per dollar in most cases, along with business licenses and other fees. A mill is $1 in taxes per $1,000 in assessed property value.

Johns said the election of five council members and a mayor will probably be scheduled for a Tuesday in October.

"We need to sit down and look at the calendar," Johns said. "We just need to line the dominoes up. It's just a matter of putting it all together to include all events such as absentee voting. We could possibly do it in September, but tentatively it will be October."

The waterfront community voted 192-113 in an April 21 referendum to become the county's 14th municipality.

The turnout represented about 63 percent of the approximately 485 people who registered to vote by an April 10 deadline.

Supporters said that a town government would protect the 108-year-old community from encroachment by development interests and annexation-minded neighbors.

The Perdido Beach Property Owners and Residents Association led the effort on hold a referendum on the issue.

Association President Bob Gross said last week that an early October election sounded good and that he has heard from several potential candidates.

Meanwhile, a committee of 11 community members is preparing a list of council actions needed to begin government operations.

Gross said that the committee is "gathering data to be sure that when the time comes to do something, there won't be any question marks."

He said that Magnolia Springs officials have been a "tremendous help" to that committee. Magnolia Springs incorporated in 2006 as the county's 13th municipality.

Perdido Beach has enjoyed a community identity since 1901, when Col. LB. Hatch began selling property there, according to the group's Web site.

Over the years, it has had its own school, hotel, fish market, post office, ice plant, bottling works, boat-building industry, churches, stores, rental cottages and turpentine and sugar cane mills, according to the association.

Incorporation advocates have expressed concern that the community identity could be threatened if Orange Beach ever builds a bridge from Ala. 161 to a road heading north along the route of Baldwin County 95, just west of Perdido Beach.

Orange Beach officials have been working on financing but economic woes have put the road-and-bridge project on the back burner.

Orange Beach, developer settle on Turquoise Place public benefits

Ryan Dezember, Press-RegisterOrange Beach officials and the developer of the Turquoise Place condominiums have agreed to a public benefits package that will net taxpayers nearly 6.5 acres on Cotton Bayou as well as a public beach access and $400,000.

ORANGE BEACH, Ala. -- With the second Turquoise Place condo tower nearing completion, its developer and city officials have reached an agreement on the package of property and cash that will be given to the public in exchange for the zoning that accommodated the 300-foot-plus structures.

Under the agreement, developer Larry Wireman will give the city nearly 6½ acres on Cotton Bayou's southern shore, a 90-foot-wide public beach access on the west side of the towers, and $400,000 for capital improvements.

The council won't likely vote to approve the deal for two weeks after tabling the matter at its Tuesday meeting. The developer and his lawyer asked that it be delayed while minor issues regarding legal descriptions of the property and easements are worked out, said Vince Lucido, an engineer who is working for Wireman.

Before 2006, when state legislators approved a system for collecting impact fees from developers in Baldwin County, Orange Beach officials extracted "public benefits" from developers in exchange for flexible zoning that would accommodate projects that otherwise wouldn't fit local land-use laws.

Originally Wireman had planned four towers and promised up to 16 acres on Cotton Bayou, the beach access and money to build park improvements like bike racks, barbecue grills and bathrooms as well as a small fire station across Ala. 182 from Turquoise Place. In a slumping market, however, Wireman scrapped his plans for the second pair of towers, prompting renegotiation of his public offerings.

Orange Beach, Alabama Condominium for sale at Phoenix VI Custom condo-Gulf front w/Gulf front Master Suite. 8' double doors added as entrance to master, new windows/sliders, custom shower added to master bath, large whirlpool tub added to guest bath, upgraded appliances & kitchen/bathroom cabinets & fixtures, wet bar added, 14' ceilings. Proven construction, wireless internet, outdoor/indoor pools, tennis, racquetball, basketball, spa, huge beach, gated Something magical happens when you visit the Alabama Gulf Coast. The moment you arrive, the world starts to fade away. Maybe it's the sound of waves gently lapping the shore or the smell of coconut oil. Perhaps it's our white sand Gulf Coast beaches and sparkling emerald water. Suddenly building sandcastles moves to the top of your "to-do" list. You remember just how much fun your spouse is. You find yourself laughing at your son's "Knock, knock" joke, even though you've heard it a zillion times. You linger over a succulent, fresh seafood dinner at one of the seaside restaurants in Orange Beach and Gulf Shores, where nobody rushes to get away from the table. A great getaway is closer than you think. A visit to Orange Beach and Gulf Shores offers the perfect balance of non-stop activity and lay-around-doing-nothing time. Putter around a bit on one of our championship golf courses. Cast your line for deep-sea adventure on one of the Gulf Shores and Orange Beach fishing charters. Travel back in history with a visit to Fort Morgan, the site of the Civil War Battle of Mobile Bay. Commune with Mother Nature as you hike wildlife trails gazing at shorebirds. Gulf Shores / Orange Beach is a place where you can slow down, let loose, rediscover yourself and savor your loved ones. It's the Alabama Gulf Coast, and it will cast its spell over you.

The Palms in Orange Beach, Alabama

 

We have a National Seashore, a wildlife refuge, hiking trails, gorgeous beaches, golf courses, great tennis, boating, shopping, sailing, jet skiing, snorkeling/diving, biking, theme parks, shelling, surfing, wildlife viewing, spas, museums, restaurants, parasailing, swimming, windsurfing, fishing...... and the list goes on and on. Join us! The Alabama Gulf Coast attracts the investor who is looking for all of this and more... If you are interested in investing in a condo, I would be happy to speak with you. My experience, training, market knowledge, contacts and enthusiasm can help you accomplish your objectives finding just the right condominium, should you be considering the option. Tell me... 1.) What area would you like to receive listings in? Either Gulf Shores or Orange Beach or does it matter? 2.) How many bedrooms and baths would you like? 3.) What kind of special amenities would you like? On the beach? Gulf front? 4.) What is the MAXIMUM you would like to spend? 5.) How soon would you consider buying a condo?

Riley signs bill for beach hotel at Gulf State Park

Wednesday, May 13, 2009 By GEORGE R. ALTMAN Capital Bureau

Gov. Bob Riley on Tuesday approved a compromise bill to bring a new, beachfront hotel and convention center to Gulf State Park, after years of court battles over the project.

But legal problems for the planned hotel may not be over.

Senate Bill 254 requires that room rates at the hotel, planned for public land, be reasonable in comparison with similar hotels.

"Because a four-star hotel's rates would not be reasonable to the public, if Governor Riley violates this section of SB 254, I will carry him back to court so fast it will make his head swim," former Conservation Commissioner Charley Grimsley said in an e-mail.

Lee Sentell, director of the Alabama Tourism Department, said the hotel's rates will only need to be comparable to the nearby Perdido Beach Resort, which has rates that meet luxury standards set by a national hotel statistics organization. Sentell said it costs more to build a hotel on the beach, so the rates must be higher.

"You cannot put millions of dollars in the ground and then expect to build a Motel 6 on top of the sand," he said.

The planned hotel has been a subject of controversy for years.

After 2004's Hurricane Ivan destroyed the state's previous hotel in the park, the Gulf State Park Lodge, Riley backed a plan to replace it by subleasing land to the Atlanta-based West Paces Hotel Group.

Grimsley and other opponents sued, four years of litigation followed and the state's highest court ruled against Riley in late March.

Soon after that ruling, both sides worked out a compromise in the Legislature, through a bill sponsored by Sen. Larry Dixon, R-Montgomery.

The bill required legislative approval for the long-term lease or sale of other state beaches but allowed a lease for the former site of Gulf State Park Lodge. The bill also mandated that the lease be between 30 and 70 years, construction be competitively bid, state employees run the convention center, local governments enter into negotiations for paying maintenance costs, and the hotel's rates be reasonable.

Riley signed the bill into law Tuesday in Gulf Shores, but disagreements persist.

A clause in the bill refers to a state law, which mandates that contracts "shall provide for the reasonableness of the concessionaire's rates and charges to the public, and such rates shall be judged primarily by comparison with those rates or charges for facilities and services of comparable character."

Dixon and Sentell pointed to the nearby Perdido Beach Resort as a comparable facility.

For a single guest staying one night, the lowest available rate at Perdido is $191.86, as a seven-day average. Booking information from the hotel's Web site shows that the lowest available nightly rate this week ranges from $269, for a Friday check-in, to $159, for Sunday and Monday check-ins.

The average cost for Perdido is almost 2.5 times the average daily rate for the region and falls within the "luxury" price classification, according to information from Smith Travel Research, a Tennessee-based group that compiles statistics on hotels nationwide.

"Governor Riley wanted a four-star luxury hotel whose rates would be unreasonable to the public. SB 254 stops that by requiring reasonable rates," Grimsley's e-mail said.

Riley's office did not return messages seeking comment. Sentell said room rates would have to be low enough to draw visitors but high enough to pay for construction costs.

Dixon said he believes Grimsley will lose if he takes the matter to court again. He added that the most important part of his bill is that it protects more than 4 miles of beaches beyond the old Gulf State Park Lodge site.

"Basically, nobody has to worry about some developer getting hold of that beachfront from now on," Dixon said.

 

Turquoise Place renting 90 units

Developer says having portion off market makes 45 remaining condos easier to sell Sunday, May 10, 2009 By KATHY JUMPER Real Estate Editor

The owners of 90 units at the 24-story Turquoise Place in Orange Beach have furnished and are now renting the brand-new units, according to Rich Richardson of Spectrum Capital, based in Jackson, Miss.

Spectrum paid about $45 million for 90 of the 181 Gulf-front units, according to court records.

Spectrum is the real estate arm of Yates Cos., the contractor that built Turquoise Place on Ala. 182 in partnership with developer Larry Wireman of Orange Beach, Richardson said.

About 46 units have been sold and the owners have moved in, Wireman said. The 90 are in rentals, and the remaining 45 units start at $1.2 million, according to Wireman, who also developed Caribe Resort in Orange Beach.

In 2005, the units presold for an average $1.5 million, with the 6,000-square-foot penthouses averaging $5 million.

Offering the 90 units for rent "is a good thing," Wireman said last week. "They are off the sales market. It makes the rest of the units a lot better. We're not sitting there with 100 units to sell."

"The condo market is changing, and we have to adjust with the times," Richardson said. "You are definitely not going to find ones to rent like this that are brand-new with Sub-Zero refrigerators, high-end appliances and hot tubs. The smallest unit is a three bedroom with 2,300 square feet and private balconies."

"The market is going to be back. This is a way for people to buy some time and go ahead and furnish it for people to enjoy and use," said Chuck Norwood of REMAX of Gulf Shores. "It makes good sense. The rentals will offset some of the expenses."

However, Norwood added, "It doesn't make sense to buy a unit there as a rental."

The units will be operated by Spectrum's resort management division, Spectrum Vacations, which has an on-site rental management team.

The rental prices are competitive for the area rental market, with a three-bedroom, 3cm HALF-bath unit leasing for $290 per night, according to Richardson.

The lushly landscaped tower's amenities include an indoor pool, outdoor pool, a lazy river on the fourth floor, steam room, sauna, 3,000-square-foot gym and high-speed glass-and-tile elevators. Views from the tower stretch from Pensacola Beach to The Beach Club on Fort Morgan.

/cut/1/cPress-Register file photoThe first Turquoise Place tower is shown in June 2008. The owners of 90 of the high-profile condo project's units have decided to offer them as rentals. The Orange Beach development has sold about 46 units; the 45 remaining units start at $1.2 million.

 

Condo business stable

Even with tighter lending guidelines, buyers are out there looking for deals Sunday, May 03, 2009 By KATHY JUMPER Real Estate Editor

Two weeks after broker Tammy Godbold listed 10 condominium units in Crystal Shores West in Gulf Shores, four were under contract, and she also sold two units in the nearby Crystal Tower, off the beach.

"This is a sign that people are ready, willing and able to buy," said Godbold, owner of Waterways Realty in Orange Beach. The two-bedroom, two-bath units in the 170-unit Crystal Tower were listed for $225,000 to $250,000; the three-bedroom, three-bath units in the 108-unit Crystal Shores West on the beach were listed for $382,250.

Buyers are coming back to the resort market, looking for deals, plunking down cash or financing condo purchases, according to Realtors.

"Condos are hot right now when the price is right," said Patrick Daily, owner of REMAX of Orange Beach. "If you find a two-bedroom, two-bath between $250,000 and $325,000 in a good building, it goes under contract immediately. The mortgage rates are awesome if you've got a little cash."

The mortgage lending crisis has lenders tightening guidelines on condo loans, but financing is available for qualified buyers, lenders and agents say.

Fannie Mae and Freddie Mac require that about 51 percent of the condo building be owner-occupied. The theory is that investors would more likely let a unit go into foreclosure than a second-home owner, according to lenders.

Many of the newer condo developments have rent restrictions, such as a 30-day rental minimum, and that helps avoid rental issues when financing a unit, according to Amanda Landry of Amicus Mortgage Group in Gulf Shores.

Buyers often prefer Fannie Mae since the institutional lender typically offers the lowest interest rates, according to Landry, but "you have to do your homework" when applying because lending guidelines are constantly changing, she said.

Interest rates on a 30-year fixed mortgage averaged 4.78 percent this past week, according to Freddie Mac. A 15-year fixed loan was 4.48 percent.

Restrictions are a way for lenders to "slow things down and try to recoup" in a tough economy, according to Anthony Kaiser, sales division vice president at Meyer Real Estate in Gulf Shores. One of the toughest things to get around, he said, is the 20 percent down payment that many lenders require.

Meyer's agents have had very few loans turned down, he said. A third of the recent sales have been foreclosure properties, with condos sell ing at an average $300,000.

Joey Parker of HMC, Home Mortgage Co., in Gulf Shores, sends a 25-point questionnaire to condo owners associations to help determine if a borrower is eligible for Fannie Mae or Freddie Mac lending.

"We do not have any problems," lending to condo buyers, Parker said. "You can still get very attractive financing terms. All the condos I do are on a 30-year fixed rate, and all have very attractive rates."

His business is up, with most of the activity in condos, Parker said.

"The market is absorbing short sales and foreclosure properties more than it did last year. And a lot of the units that developers kept back are selling."

The Merrill Co. decided to release most of the remaining developer-owned units in Crystal Shores West and Crystal Tower while there are buyers out there, according to Collier Merrill of the Pensacola-based company.

"People ask me if now is the right time to buy," Merrill said. "If you're investing and looking to flip it, I don't know. But if you're looking for something you want to use, now is the perfect time. You've got a lot of choices, you can use it and in 10 years it will be worth more than you paid for it."

Realtors are starting to see signs of the beach market reaching a bottom, according to Bob Shallow, owner of REMAX Paradise in Orange Beach. He said he's seeing second home buyers who can afford to spend $500,000 to $1 million on a unit that they don't have to rent.

Newer condo units are at 40 to 50 percent of the value they were a year or two ago, Shallow said. For example, a unit with a boat slip in Vista Bella on Ole River in Orange Beach is priced at $550,000 compared to the selling price of $1.1 million two years ago.

"People who want to sell and are realistic with the price, they now have an opportunity to sell it," Shallow said. "Two years ago, price didn't do it."