Trump and Related Group Getting Chummy

In a joint effort with Jorge Perez's Related Group, Donald Trump plans to build a Trump Tower in Florida's ritzy Palm Beach. The project is yet another in an ongoing string of joint ventures that the two mega developers have participated in, including the Trump Sunny Isles Beach,a 3 tower project that is nearing completion.

Additionally, Trump has expressed interest in developing the Briny Breezes trailer park with the Related Group. You remember Briny Breezes right? The 140 some odd trailer sites that sold for over $1 Million each because of their location, location, location that has shores on the Atlantic Ocean and the Intracoastal. The ink is not even dry on the Briny Breezes deal and these captains of industry are ready to make their move.

Trump and Perez are like Paris and Brittney, everyone wants to know...where will they go next? OK well not exactly like them...

Reserve at Blue Lake Set To Begin Construction

Ft. Lauderdale based Stiles Development has anounced that it plans to begin construction next month on Reserve at Blue Lake, a 172 Unit Mediterranean style development. The development is located at 5051 Broken Sound Blvd. (see map below) and is unique in that it borders the 78-Acre Pondhawk Nature Preserve, with views being incorporated into the design of the development. Reserve at Blue Lake is set to have 140 three-story townhomes and 32 two-story single-family homes. For full details on the project check the Daily List at AllPreconstruction.com.

Click on the pic for a larger view.

Insurance Relief in Florida

"The government has finally stepped in and done something right!", is the cry from Florida homeowners after a special week long legislative session closed Monday night with measures passed that could decrease a homeowners burden by anywhere from 10- 50%. The measures cover a wide swath of directives and requirements but most follow a constant theme, which is to allow homeowners to decided if they want to assume more of the risk on their property in exchange for lower premiums. Supporters of the legislation are happy about the relief for homeowners but some are still grumbling about the lack of relief for small business owners and landlords whose woes did not receive nearly as much atttention.

All in all it is great news for Florida real estate, at a time when taxes are going up in response to the boom of the last few years, this insurance rate relief is just what the doctor ordered. Particularly for investors who own income producing property, it makes the state a much more attracitve investment opportunity when you can break even cash-flow or even turn a profit as opposed to being substantially negative.

To read the highlights of the insurance overhaul in the Miami Herald click here.

Insurance Solution in Florida May Come Today

Ahhh the Sunshine State, the main problem with paradise is that the universe is balanced and so when you have a place that is nearly perfect, there is always something that will pop-up to return the balance. In the case of Florida that something is Hurricanes. The Florida peninsula is a sitting duck right smack in the middle of hurricane alley. Never was that more apparent than in 2005 when a record number of storms hit the state causing billions in damage. The insurance companies lost their shirt...and then they decided to go out and buy brand new silk shirts from Nordstrom's. So insurance premiums have been on the mind of every Florida property owner for the last two years.

Now the state legislature is finally making some solid moves to stop the collective bleeding. The proposals very greatly as can be expected but the common them is that homeowners will have to assume more risk, particularly in the event of a mega-storm, in order to reduce their premiums. The good news is that premiums are expected to go down anywhere from 10% to 25%. This will definitely help a problem that was quickly becoming a crisis. We will keep a close on the decision today and update you all tomorrow.

The Hilton Ft. Lauderdale Beach Resort Condo-Hotel Opened Today

The newest condo-hotel resort in Ft. Lauderdale opened 130 rooms for guests and promises to open another 40 by the time the Super Bowl comes to town in two weeks. The development has a total of 374 rooms but many have not closed yet which means that Hilton cannot yet let them out to guests. The property is sure to attract countless numbers of visitors in its coming years as it is one of the most beautiful and elegant buildings on the beach.

Lennar's Loss is Buyers/Investors Green Light

Lennar just posted a $196 Million loss for its fourth quarter 2006 numbers. It wasn't just the end of the year that was bad...after topping the $1 Billion earnings mark in 2005 for the first time in company history, total earnings in '06 dropped by nearly half. Lennar CEO Stuart Miller has got to be needing a good drink by now. The buying and investing world is also having a drink, but for a different reason.

Lennar's MEGA-loss means that the housing sector of the economy is still dropping back to more reasonable levels of growth...basically we are getting back to where we should be, which is still better off than we were before. It's bad news for owners of properties who expected to get rich of the equity in the homes...it's great news for first-time buyers and investors who are going to be able to get incredible deals. We already discussed this back in "2007: Year of the Incentives", the market factors are realtively simple supply and demand. But with Lennar's most recent report, and the company's widely respected status as a market indicator, we can expect that while Stuart Miller might be stewing over a vodka maritini overlooking Atlantic Ocean, there are thousands and thousands of smaller developers who are drinking far cheaper drinks while they pour over their numbers trying to figure out how in the world they are going to sell their units...let the negotiations begin!!!

Briney Breezes Trailer Park Sells for $510 Million!

In one of the most interesting deals in recent memory, the 488 units of the Town of Briny Breezes was sold to a developer this week for $510 Million, making most of the property owners instant millionaires.

The residents of the mobile home park (that was also incorporated as a town) voted by an 82% margin to ratify the board's position accept the developer's offer and sell their little piece. The developer is Ocean Land Investments, and they are delighted with the decision of the residents. They see the property as a windfall, and indeed it is one of the last pieces of land in South Florida that has both beach and intracoastal frontage. Ocean Land Investments is proposing 900 condo units, a luxury hotel and a marina. We will keep a close watch on this property as it could turn out to be a great project.

Here is a map of the location of Briny Breezes:

New Governor Fights for Lower Insurance Rates

The new Florida Governor Charlie Christ has been talking the talk and walking the walk as far as his following up in his campaign promise to lower insurance rates in the Sunshine State. The insurance problem has been termed a crisis over the past couple of years following the Summer of 2005 when the state was hit with 5 named storms in various parts of the state. Since then insurance premiums have been going up and up, making it more difficult for property owners to pay their bills. The rising insurance rates have coupled with rising property taxes and home values to make owning a home in Florida a very pricey proposition.

Christ has talked tough on both issues since he began campaiging last year and now that he is in office he is standing by his promises. He is saying that he doesn't care if the insurance companies come out of this "unhappy" and that they should be making limitless profits while Florida's economy suffers from the extra expense.

It seems like someone is finally getting it...

Jade Ocean Secures Construction Financing

On December 28, just in time to give a lot of people a VERY happy New Years, Jade Ocean was able to secure a $288 Million construction loan. The loan was brokered by Manny de Zarraga of Holliday Fenoglio Fowler and was touted as an example of the "continued strength of higher-end, luxury oceanfront projects." The finanacing was reported to be relatively easy to attain, in a market where this is becoming more and more difficult to accomplish. The success was boosted by the fact that 90% of the units have already been sold, all at prices north of $1 Million.

The project follows in the footstops of the already famous Jade in Miami's Brickell neighborhood. Jade Ocean is the true definition of luxury with unrivaled amenities and quality of life enhancements. From the futuristic-nautical shape of the tower to the cascading waterfalls and services at the touch of a finger, Jade Ocean is going to set the standard for opulent ocean front living on Miami Beach for a long time!

You can view the full details of the project at by clicking here.

Housing Continues Strength in South Dakota as New Commercial Center Will Break Ground

Things are happening up in South Dakota. In the part of the country most famous for the Mount Rushmore National Monument, people are beginning to settle in ever growing numbers. Housing starts peaked in 2005 as they did in most parts of the country, but while the rest of the states have seen a marked slowdown, Rapid City, SD has continued it strength over the last year.

Now developers R.H. Johnson and LANE4 Property Group are planning to break ground on the Meadows of the Blackhills, a sprawling 600,000 sf. big box retail center that will include a Sam's Wholesale Club, a Bed Bath & Beyond and a Home Depot among others. Initial plans allow for the possibility of lodging and commercial space to be added in the future. The location is at the northwest corner of I-90 and Exit 60 in Rapid City, South Dakota. The project is being billed as a regional development since it will serve not only Rapid City but also the 200 miles surrounding the area that sees an estimated 5 Million tourists each year.

2007 : Year of the Incentive

2006 is a year that the vast majority of the residential development community would like to forget. Inventories grew as the market slowed to a crawl. The unfortunate combination of increasing supply and restricted demand created one of the strongest Buyer's markets in recent history and all evidence points to a continued sluggishness in sales for the coming year.

So we are now entering the absolute best time to buy as not only are prices coming down but developers are willing to offer substantial incentives in order to move their inventory. These incentives can come in a variety of forms, from a year or more of HOA's paid, to cash back at closing, cash back after closing, guaranteed rental of your unit for a year or more, club memberships and even cars! A developer in West Palm Beach recently offered a lease on a brand new Mercedes for closing by a certain date!

This means that in 2007 the savvy investor will be able to secure excellent deals by finding developers that are willing to offer more incentives in order to move their inventory. Since we have been following this trend for some time we have been able to find and negotiate some incredible deals for our investors. Some of you may have received our emails on a deal we have in Tampa that we are getting at 20% below market! We will continue to focus on the incentives that the different developers are offering and provide them for you here. The market is down right now, this is the time to get the best deals and buy low because as history shows us, it will not stay down for long.