The first month of 2005 was a great one for condo sales on Anna Maria Island, when 13 units fetched $6,855,000, up from eight units which brought in $2,494,006 in January ‘04. While none of the January 2005 condo sales broke the $1 million mark, the #2 unit at 502 South Bay Drive in Bradenton Beach sold for $975,000.

This reverses a trend noted in the January ‘05 issue of AMIPSR, when it was reported that only half as many condos (nine) were sold as in December ‘03 (18). Sale price was almost identical in both months ($490,544. in December ‘04 versus $485,931. in December ‘03) bit the December ‘03 volume was close to double ($8.7 million) the December ‘04 figure ($4.4 million) owing to the higher number of condos that were sold.

Average condo sale price in January ‘05 topped the half million dollar mark, coming in at $529,615 or $442.80 per square foot. The average listing price for the 13 units sold last month was $547,369.23.

Although the average price of a single family residence sold on Anna Maria Island in January ‘05 was $617,636. versus $543,250. a year earlier, the number of SFRs dropped from 16 in ‘04 to 13 in ‘05 making the overall sales figure lower, $6,794,000. this January versus $8,6892,000 in January ‘04. Highest sale last month was $945,000 for the property at 12905 West 42nd Terrace in Cortez.

Commercial sales on Anna Maria Island in January ‘05 totaled $3.5 million for one property versus $3.0 million for the one commercial property that sold in January ‘04. The property that sold last month, located at 100, 102, 104, 106 and 108 36th Street in Holmes Beach, was purchased by Patrick McConnell who is developing a new seven-unit, luxury complex there called Palm Gables Condominiums. The exclusive marketing agency for Palm Gables, Island Vacation Properties, report that all but three of the units are either sold or are under contract.

There were no duplex/triplex sales on Anna Maria Island last month compared with four in January ‘04.

One lot sold in January ‘05 ($550,000) versus four in January ‘04, with those complexes generating total sales of $2,630,000.

Pending Sales Up from 67 Last Month to 93 Currently

The number of pending sales on Anna Maria Island this week is 93, comprising 38 residential, 45 condo, six duplex/triplex, three commercial and one lot. Last month, AMIPSR reported sales pending on a total of 67 properties on AMI, including 19 single family residences, 41 condos, three duplexes and four commercial properties.

Total Listings Up From 245 To 278 Between January & February

A total of 278 listings were available on Anna Maria Island on Feb. 14, 2005, comprising 105 single family residences, 119 condos, 33 triplexes/duplexes, 13 commercial and eight lots. As reported in previous issues of AMIPSR, the number of available properties continues to rise as property owners move to cash out, moving from the 245 available at the start of 2005 to the 278 currently on the market.

Single Family Residential Sales January ‘05

118 Palmetto Ave., Anna Maria, 2BR/2BA, cottage, west side of Gulf Drive in Anna Maria Village, drive space/no covered parking, 707 sq. ft. Built 1925…$500,000.

317 Spring Ave., Anna Maria, 3BR/2BA, elevated, attached garage, 1,352 sq. ft. Built 1988…$555,000.

313 Iris St., Luana Islands, Anna Maria, 2BR,2BA, heated inground pool, attached garage, water view, private dock, bayou, boat access, 1,206 sq. ft. Built 1970…$600,000.

514 North Bay Blvd., Shore Acres, Anna Maria, 5BR/3BA, attached garage, deeded beach access, full bay view, 2,205 sq. ft. Built 1990…$650,000.

5405-B Gulf Drive, Holmes Beach, 2BR/2BA, attached carport/attached garage, 1,080 sq. ft. Built 1980…$360,000.

220 84th St., Holmes Beach, 2-3BR/2.5BA, attached garage. 1,721 sq. ft. Built 1971…$458,000.

2801 Gulf Drive, Ilexhurst, Holmes Beach, 3BR/2BA, heated inground pool, attached garage/drive space, 1,404 sq. ft. Built 1994…$637,000.

530 Key Royale Drive, Holmes Beach, 3BR/3BA, heated inground pool, boat lift/davit, private dock, water view, attached garage/drive space. Built 1963…$750,000.

4107 5th Ave., Holmes Beach, 3BR/3BA, heated pool, attached carport/drive space, partial bay/gulf views. Built 2003…$879,000.

12905 West 42nd Terrace, Cortez, 3BR/3BA, heated caged pool, dock, full bay view, attached garage/drive space, 2,527 sq. ft. Built 1995…$945,000.

807 South Gulf Drive, Cortez Beach, 1BR/1BA, attached carport, full gulf view, 533 sq. ft. Built 1945…$460,000.

Condos Sold Jan. 1-31, 2005

3807 East Bay Drive #205, Sandy Point, Holmes Beach, 2BR/2BA, community heated pool, bay view, parking under building, 976 sq. ft. Built 1996…$253,000.

4307 Gulf Drive, #203, Cayman Cay Villas, Holmes Beach, 2BR/2BA, partial gulf view, turnkey furnished, BBQ/Picnic, heated pool, shuffleboard, attached carport, 1,027 sq. ft. Built 1974…$300,000.

100 73rd St., #202A, Coconuts, 1BR/1BA, full gulf view, heated pool, 660 sq. ft. Built 1972…$450,000.

6500 Flotilla Drive, #223, Westbay Point & Mooring, 3BR/2BA, on canal, water view, heated pool, spa/hot tub, tennis/hard surface, covered parking/detached carport, 1,622 sq. ft. Built 1979…$460,000.

3311 Gulf Drive #2, Tropical Sunset, Holmes Beach, 3BR/2BA, on canal, heated pool, spa/hot tub, hard surface tennis, covered parking/detached carport, 1,622 sq. ft. Built 1979…$460,000.

5608 Gulf Drive #211, Sun Plaza West, Holmes Beach, 2BR/2BA, partial gulf view, clubhouse, hard surface tennis, pool, 1,092 sq. ft. Built 1981…$530,000.

5400 North Gulf Drive #31, Holmes Beach, 2BR/2BA, heated pool, shuffleboard, clubhouse, kitchen, covered parking/detached carport, 1,188 sq. ft. Built 1969…$560,000.

1301 North Bay Drive, #6A, Baywatch, Bradenton Beach, 2BR/2BA, bayfront end unit, heated pool, two under building parking space, private fishing pier, 1,079 sq. ft. Built 1982…$462,000.

236 North 17th St., #34, Bradenton Beach Club, Bradenton Beach, 2BR/2.5BA, heated pool, gulf + bay view, spa/hot tub, exercise room, covered parking/attached garage, 1,425 sq. ft. Built 2004…$570,000.

238 North 17th St., #32, Bradenton Beach Club, Bradenton Beach, 2BR/2BA, heated pool, gulf + bay view, spa/hot tub, exercise room, covered parking/attached garage, 1,425 sq. ft. Built 2004…$595,000.

228 North 17th St., #31, Bradenton Beach Club, Bradenton Beach, 2BR/2BA, heated pool, gulf + bay view, spa/hot tub, exercise room, attached garage, 1,425 sq. ft. Built 2004…$610,000.

254 North 17th St., #24, Bradenton Beach Club, Bradenton Beach, 2BR/2BA. heated pool, gulf + bay views, spa/hot tub, exercise room, attached garage, 1,425 sq. ft. Built 2004…$610,000.

502 South Bay Drive, Bradenton Beach, 2BR/2BA, pool, full bay + partial gulf view, attached garage, 1,614 sq. ft. Built 2004…$975,000.

Commercial Properties Sold Jan. 1-31, 2005

100,, 102, 104,, 106, 108 36th St., Holmes Beach, five home gulf front compound, 222′ on beach, 3BR/2BA beach house, beachfront duplex with 3BR/2BA each plus two 2BR/2BA cottages. Heated pool. Largest parcel available on beach. $3.5 million.

Lots Sold Jan. 1-31, 2005.

718 Key Royale Drive, North Point Harbour, Holmes Beach, 9,095 sq. ft. deed restricted canal lot, bay views, newer seawall with exclusive use of North Point Harbour Tennis Court & Pool. $555,000.

Anna Maria Island Property Sales Report is published in cooperation with Island Vacation Properties, LLC, 3001 Gulf Drive, Holmes Beach. The following represents the property sales activity of IVP in January 2005.

Island Vacation Properties Pending Sales

517 Magnolia Ave., Anna Maria. This 4BR/3BA single family elevated residence has a new pool and bay views from all decks. There is a two-car garage and lots of storage. It is located on a deep canal with no bridges to Tampa Bay. There is a boat dock with a 12000 pound boat lift. The master suite on the top floor has a private deck with bay view. This has been a successful rental with reliable income and comes turn-key furnished. The home has 2,322 square feet under HVAC. The lot on a quite residential street is 8,625 square feet in size…$875,000. Contact Ted Schlegel or Barry Gould at 941-778-6849.

Island Vacation Properties Active Listings

1000 Gulf Drive, Unit 10, Beach House Resort Condominiums, Bradenton Beach. 3BR/3BA 2000+ sq. ft. unit, direct beachfront with unobstructed views of the gulf…$1,500,000. Final design pending regulatory approvals. Subject to change. Contact Ted Schlegel or Barry Gould at 941-778-6849.

2310 Gulf Drive, Unit 203, Shell Cove Condominium, Bradenton Beach. Direct beach front 2BR/1BA condo, 651 sq. ft. recently completely refurbished, turn-key furnished, excellent rental…$499,000. Contact Ted Schlegel or Barry Gould at 941-778-6849.

3600 4th Ave., Palm Gables, Holmes Beach, Three luxury units available, including two in a central six unit building and an existing three bedroom, ground level beach house that will be completely gutted, expanded and refurbished. A new heated pool will be installed next to the vast dune system protected by a footbridge to water’s edge. Prices start at $1,550,000. For a complete presentation contact Barry Gould of Island Vacation Properties, LLC at 941-448-5500. Teammate Ted Schlegel may also be contacted at 941-518-6117.

Anna Maria Beach Place Condominiuim. 201 35th Street, Holmes Beach. Two, two bedroom units and four, one bedroom units, starting at $395,000. These are adorable residences in a very solid structure. The beach view is across 4th Avenue but is expansive. The property is approximately 50 feet to the sand. The neighborhood is very quite and the rental history has been outstanding for many years. The season is booked solid which makes this a great time to purchase. At press time both two-bedroom units were under contract but the remaining four, one bedroom units are spacious, turn-key furnished and nicely decorated. The classic Mediterranean property features a gulf view and heated pool with beautiful landscaping. Rental management is already in place by IVP meaning there is nothing an investor needs to do but bring the monthly income checks to the bank. For a complete presentation contact Barry Gould of Island Vacation Properties at 941-448-5500. Teammate Ted Schlegel may also be contacted at 941-518-6117.

MESSAGE FROM THE PUBLISHER: WHY ARE WE SO AFRAID OF THE TERM ‘CONDO CONVERSION’?

Why are we so afraid of the term “condo conversion”? Just the term engenders negative feelings.

The basic concept of a “condo conversion” is to upgrade an apartment building, resort or motel, make it like new and sell it to individual investors. At the same time, the property continues to be operated as a motel.

A variation of this concept is to have a middleman/investor purchase the entire property, invest in a property upgrade and eventually resell the units to individual investors. This concept has proven to be more popular and successful on Anna Maria Island than the first option because the resort/motel operator looks at the process as daunting and scary.

There are many benefits to the transition to a middleman/investor type of ownership. Over the last few years, a resort/motel operator should be looking at 15-20% profit on his operation because of increased taxes and insurance costs. Most resort/motel operators are having difficulty generating any profit and some are in danger of running in the red.

Still, most resort/motel operators hold on for fear of having to sell to a big developer and watch the bulldozing of property that has become so much a part of their lives as well as those of other family members. After the bulldozing, the affected resorts/motels become big luxury condos that only the financially elite can afford to stay in.

This profitability formula is not the same as a small investor owning a single unit in a small complex. The goal of most small investors on Anna Maria Island is to break even with the idea of building a next egg that appreciates over time and, in some cases, helps finance their retirement.

The redevelopment of properties like the Beach House Resort and Anna Maria Island Beach Place, currently underway on Anna Maria Island, allows the resorts to stay pretty much the same in the eyes of residents and vacationers. The Beach House (see AMIPSR #8, January 2005 for additional background) was sold to a foreign investor by Barry Gould of Island Vacation Properties. The original units were gutted and phase #1 of the reconstruction project had been completed at press time. The result is six brand new units with spectacular interiors that were restored from a property that most people thought should have been bulldozed.

The interest in owning these adorable small (about 500 square feet), ‘dead-on’ beachfront units at the Beach House was so great that all went under contract within a few days and there was a backup list of standby buyers. The reason for the popularity of these units is the fact that they will probably break even in the second year of a new owner’s possession. Income is significant because motel or resort properties like the Beach House tend to have much higher occupancy rates that traditional vacation condos. Among other things, they are licensed for very short-term rental guests and are ‘grandfathered’ with the three island cities. All three cities–Anna Maria, Holmes Beach, Bradenton Beach–no longer issue licenses to operate for less than one week rentals, with Anna Maria Island one of the few gulf front vacation destinations that allow weekly rentals for new construction; most allow no less than monthly rentals. The result is during the slow fall months when weekly rentals are mostly vacant properties like the Beach House Resort and Anna Maria Beach Place will be nearly full every weekend.

There are some sensitive issues to address with this type of “condo conversion.” One is that the individual small investor who buys a unit in a refurbished property may have trouble getting financing, especially at the best rates, because most lenders won’t fund purchases in a property that is run in this nontraditional manner: they may shy away from the “condotel” designation. The concept of a “condotel” is to have a front desk along with daily maid service; any one owner owns more than 10% of the units and the majority of owners are in it purely for investment as opposed to personal use.

For those interested in this “not quite condotel” concept, Island Vacation Properties can add all the rental units of the property to it’s successful rental management system which features include real-time online reservations capability. From IVP’s highly visible island location they can coordinate check-ins and quickly respond to guest needs. Continuous monitoring and maintenance of properties is also included. Because IVP coordinates sales and rentals of several of these properties, it can eliminate an on-site front desk. Visitors to the island browsing in their cars that stumble across one of these properties will find a convenient kiosk with complete information, brochures and a phone number to connect to a representative. Lack of daily maid service is not expected to impact the high rate of occupancy as long as there is someone to call when a problem arises. While weekly maid service is part of the rental fee, more frequent maid service can be ordered by the guests for an extra charge.

The benefits to investors in “not quite condotels” is totally turnkey, to the point where some investors are buying these units sight unseen as they look strictly at the income potential.

Besides the benefit of having these “not quite condotel” properties remain relatively unchanged in outward appearance, the city and county benefit by a continuation of the resort tax. In addition, individual condo ownership in a property tends to be taxed higher when the individual condos are acquired at a higher cost per square foot.

In some cases, upgrades are not required for a condo conversion of this type. This is the case with the Anna Maria Beach Place on 35th Street. When developer Lyndsay Lewis form Wales purchased this six-unit vacation apartment building in December 2004, no improvements were needed because the property had been maintained in great condition. Once the developer met the state legal requirements to market the units for sale through Island Vacation Properties, all six units went under binding sales contracts within a few weeks. Final closings will take place when the condo documents receive final state approval, which is expected on or about March 1, 2005.

Buyers of Anna Maria Beach Place units are excited to have a piece of Anna Maria Island at an affordable price. Add great beach views, a heated pool and an outstanding rental history for many years and the deal becomes even sweeter. All this, of course, will be transparent to guests who have made the property their winter home for many years. They want the place to stay just as it is and continue to be a mature rental property. Under this scenario, no one has to create a new habit of vacationing at Anna Maria Beach Place: parents, kids and grandkids think of it as part of their lives. And this is the kind of vacation property that has made Anna Maria Island popular with generations of families for many years.

Island Vacation Properties has several properties of this type in various stages of development. If you want to be on a list to receive information about then, contact Barry Gould via email at barry@realtorgould.com