On Friday Ron called me and asked me to walk over to  Highpoint Place with him. He had seen an advertisement offering close out prices on developer owned homes.   I had not seen the ad nor had I seen an email announcing the prices.  (Turns out they never did an Email blast - they were afraid they would get too busy)  Highpoint Place is a majestic project that beckons travelers to downtown Fort Myers no matter what direction they arrive from. The towers loom over the historic district and it is a rare visitor that is not impressed with the punctuation High Point Place adds to our skyline.  The interior lives up to the promise of the outside appearance. Private elevators,  grand lobbies, and panoramic views; and all close to down town. 

When we arrived we chatted with Cheryl Yano and Nick Camerata.  I have been here many times before on condo tours and with clients. Recently they increased the size of the exercise room and have altered the main conference center.

The big change, however, is price. We looked at a fifth floor home overlooking the Marina being offered at special year end price of $270,000.  This home originally sold for $566,990. This is less that ½ original price, and less than $150.00 a square foot. There is similar savings on the upper floors.

Folks, this is appreciably below replace cost .  Vertical costs today - without land, carrying costs, and all the soft costs is well over $200/foot in our area.  Add the rest of that and you would to be at least $300.  Anytime you can be this far below replacement costs, this is a strong buy signal.  Call me for details or a tour, our office is just down the street.

Speaking of just down the street; when I got back to my office later in the day, I received a notice of 50% price reductions on selected units at Riviera.  Christopher's  girlfriend Rachel Telfour lives in Riviera and I have had dinner there and drinks a few times.. Riviera is further up the river on the other side of downtown from High Point and is one of the three towers built by Homes for America. I am not as impressed with the fit and finish at Riviera, but the prices points have always been lower than Highpoint.  The three bedroom/2baths or two bedroom plus den and 2 baths units range in size from 1,571 sq.ft. to 1,721 sq.ft.,  prices from $189,900. to $289,900. depending on which floor, how much river view and upgrades.  All units - except the lofts - have a semi-private elevator to their condo.  Some of the views are interrupted at Riviera - but the layouts are smart.

Jorge Perez's Oasis a little further up the river is our "East Coast on The West" in downtown Fort Myers.  Think the Hotel Delano - white and chrome and glass and casual chic.  No simple rails on the balconies here - all sleek and modern.  By the way, in Miami railing on a balcony instantly dates a condo building. You simply will not see anything but glass.  Oasis also wins the prize for the amenities on the Fort Myers side of the river. This place is class all the way from the artwork in the lobby to the flowing white curtains on the pool beds waterside.  I find the condos a bit small - but there are bargains here as well right now. Call us for the inside scoop on what's going on here. There are a few surprises here.

Financing today is an issue with condos. You should assume you need at least 75% of the purchase price, and you should further assume you will have to get a portfolio loan (one that will not be sold).  Not all banks have money to lend right now.  I actually had a banker tell me this week, yes, no problem, we can loan 75% LTV to your buyer at Parkside, and it is not a problem for us that the project is still owned 50% by the developer.  But we will not have any money to lend until March!  No worries, I found a few other lenders ready to go - and rates have dropped to below 5%!  Many of these bargain deals like the $270,000 condo at High Point will be picked up for cash - so financing is not a problem.

Two weeks ago I spent a half day with Peter Zalewski of Condo Vultures in Miami. Peter is a pro and I was impressed with his knowledge of the local market. The blood bath in Miami  that the condo developers are in  makes Fort Myers look like a condo developers dream. There are many "dark" buildings and buildings in which that cannot sell any condos - even though they are completed - because the banks have "redlined" them; and who wants to buy a condo in an empty building?  Who is going to pay the common fees?

In some of the condos scammers have actually moved in and set up businesses - in effect squatting in the condos.   This is now changing as Peter and similar companies have  come in, acquired the entire project  and repositioned the pricing, the market, and the strategy to fill the buildings.

 The prices that Miami Condos are FIRE SELLING for are above $400/sf - (See Highpoint at $150.)  Fort Myers is well well below these prices - even without fire sales!  They need a large number of end users to show up to put a dent in the huge inventory they have.  I do not look for a turnaround in Mimai for three years at least.

Given a choice between Miami and Fort Myers and where to buy a condo?  No contest. Come see me and come to downtown Fort Myers.