Upcoming Communities- The Lake Club at Lakewood Ranch

I recently took a bike ride with my wife through the Lakewood Ranch Country Club. It was the early evening and the scenery was absolutely stunning. I was amazed at the tranquility and quiet luxury of the whole setting. With prices in the gates of the Country Club spiking 40% in the past year, I am interested in the demand for other East County luxury communities. With the Concession going in and already being built, (homes in Nicklaus Manor start around $2.2 Million) and the Lake Club getting under way, this is sure to be a hotspot for many years to come. Sarasota continues to see high demand for a luxury product without the insanely high dollars per square foot of the barrier islands.

The Lake Club will be a new luxury enclave with over 700 homes and 300 carriage homes and condos. Set in a similar setting to the Country Club, the Lake Club will be luxe community with golf and all the amenities. Homesites are now available for between $200,000 and $800,000 with the prices likely to increase as sales continue. If I was looking for a luxury preconstruction home in Sarasota away from the water, the Lake Club would be where I would start.

New Condo Conversions on the Horizon

In a continuing trend that just never seems to tire investors, three more apartments are being converted to condos. Village West in Bradenton was purchased for $2.5 million- or $92,500 per unit for the 27 unit complex. Sugartree Village Apartments in Sarasota will also be converted. This property was purchased for $15.6 million- or $77,600 per unit for the 201 unit complex. Saddle Creek apartments off of 26th Street in Bradenton will also be converted, giving the nudge to the residents of the 272 unit complex if they choose not to buy. As affordable housing becomes more and more scarce, we can expect these condo conversions continue until investors start losing money. However, based on the prices above, it is not hard to see how the conversion business is extremely lucrative. Buyers of the large complexes are filling a need in Sarasota right now- giving housing and ownership to lower earning families.

New Condo Development Opens for Sales: Serenata

In my capacity as an agent, I am constantly getting calls from investors who want to be the first to buy in new developments. Well, one just opened for sales last Sunday called Serenata. Heres my take- the property is nice but exposed to a lot of commercial activity. The units are attractive and look similar to apartment buildings with the prices ranging from the 200s to the 300s. The upsides are the location and the fact that there are no investor restrictions except that you can only purchase two units. The downsides are the the 2% developer cost added to the price and the high monthly maintenance fees. This property is a great example of my point that developers are not stupid- meaning these units are priced at the upper limit of what the market will bear. They will also be released in phases to maximze sales dollars. I really like Serenata for someone who needs a cheaper condo in Sarasota. For investors Serenata looks tight pricewise, but may be a good shot for a longer term hold. After all, we have not seen any new construction condo releases in this price range for quite some time. Also, the rental restrictions are lax, which is a positive for investors. For more info, shoot me an email.

Market Snapshot: Lakewood Ranch Single Family Homes

If you've lived in Sarasota for any amount of time, you have surely heard the buzz about Lakewood Ranch. I am becoming more and more interested in this area for several reasons. The first is that the land is absolutely gorgeous. This masterplanned community has done a great job with conserving wide open spaces for everyone to enjoy. The second reason is that commercial development has finally caught up with residential sprawl. With the much anticipated opening of Main Street and the shopping center coming soon, finally all the residents of the Ranch will not have to drive far for high-end dining and retail. The numbers for the last year are solid:

September 2005
New Listings: 67 Sales: 32 Average Sale Price: $522,953 Average List Price: $682,364 Average Days on the Market: 72

March 2005
New Listings: 53 Sales: 48 Average Sale Price: $ 456,247 Average List Price: $ 701,029 Average Days on the Market: 76

September 2004
New Listings: 32 Sales: 26 Average Sale Price: $ 580,562 Average List Price: $610,553 Average Days on the Market: 116

Inventory is up just like everywhere else, but I do not see this as a problem. Its more of an opportunity. Great developments like the Country Club will continue to hold their value and appeal for many years to come, especially with the arrival of many other high end developments further east like the Concession and the Lake Club. For information on these areas, email me at drew@srqlife.com.