Blog contributions are provided exclusively from Luxury Real Estate members throughout the world.
July 9, 2010.
Daniel Gale Sotheby's International Realty (DGSIR), one of the nation's leading Realtors, recently released its 2010 Mid-Year Luxury Market Report. The analysis of Long Island's North Shore luxury market (properties listed at or above $1.5 million in Nassau and Suffolk Counties, excluding the Hamptons) is released twice each year. This latest report indicates increased sales in both counties this year over the same six-month period in 2009. In Nassau County luxury sales increased overall from 78 in 2009 to 121 in 2010. Days on market were up, from 145 days average to 193 days average, but so were the average and median prices.
In Suffolk County, the number of sales increased from 42 in 2009 to 57 in 2010. Average days on market were nearly identical, 163 in 2009 and 167 in 2010. The average and median prices were up slightly in 2010 as compared to 2009. A number of towns and villages within both Nassau and Suffolk Counties reflect marked improvement for the first six months of 2010 as compared to 2010 and the pattern reflects cautious optimism for both buyers and sellers for the Luxury Sector. The market reports can be accessed through the Daniel Gale Sotheby's website http://www.danielgale.com/selling_market-reports.html "As we slowly emerge from the most significant financial crisis since the Great Depression, there has been a visible improvement," said Patricia J. Petersen, President and CEO of Daniel Gale Sotheby's International Realty. "Although real estate is very much a local business, with individual communities often performing independently of close neighbors, I believe that this particular segment of the residential market has always had a mind of its own. It stalled in parts of our market in 2009 partly because the underlying drivers-the motivation of luxury buyers and sellers and more realistic pricing, were absent. Improving consumer confidence and proper pricing will continue to be the most important factors in ensuring properties on the market are both marketable and saleable." Founded in 1922, Daniel Gale Sotheby's International Realty consistently leads the nation in achieving one of the highest average sales prices in the country. Voted Best Residential Real Estate Company in the Long Island Business News annual readership poll, Daniel Gale Sotheby's is a billion dollar plus organization with close to 600 sales associates in 21 sales offices spanning Long Island. Services include an award-winning Relocation Center, a New Homes division, a Condominium Group, a Commercial Division; Ambassador Abstract, a full-service title company, and a Wells Fargo Home Mortgage affiliation. Daniel Gale Sotheby's International Realty has been the exclusive Sotheby's International RealtyR affiliate for Long Island's North Shore since 1976. Over the course of this relationship, Daniel Gale Sotheby's International Realty has gained exceptional national and international recognition, including taking top honors worldwide for the past several years. Daniel Gale Sotheby's International Realty is on the Regents Board of "Who's Who in Luxury Real Estate," a global network of leading real estate companies and active in both Real Trends and The Realty Alliance (some of the real estate industry's most influential companies with participation "by invitation only"). More information may be obtained at www.danielgale.com.
Courtesy of: Jim Walberg of Caribbean Islands Realty
Ten days ago Sen. George LeMieus (R), from Florida proposed a bill that would have ruined the Virgin Island economy! This week, through the behind the scenes efforts of Gov. deJongh from the USVI and several of the Territory’s influential friends were successful in having it voted down by the U.S. Senate!!!
“The Rum Cover-Over War” was one worth fighting. A war starts generally because one territory is angry with another, and they want to punish the people they are angry with. Well, the offending party in this war is Puerto Rico. Puerto Rico is angry that the giant liquor conglomerate, Diageo, did not renew an agreement with a rum distillery in their territory. It happens to be the distillery that produces Captain Morgan’s label representing significant jobs and BIG revenue to any territory that has the contract.
Because they didn’t renew their contract with Puerto Rico, Diageo contracted with the US Virgin Islands to build their new distillery on St. Croix with a 30 year lease and a rum production agreement. The agreement has the USVI providing tax benefits for the contract and the USVI would begin to receive the Cover-Over funds that had been paid to Puerto Rico for so many years. Puerto Rico didn’t like it that Diageo pulled out of their territory and are now setting up shop in the USVI. So, that is why Senator LeMieus proposed the bill so he could appear to be a supporter of the many Puerto Ricans who live in Florida and are potential voters for his re-election.
Puerto Rico claims it is an inappropriate use of the cover-over money and excessively awards a foreign company. The rum cover-over payment is currently based on the production of rum in a specific Territory. Senator Lemieux’s proposal would have instead based the allocation on population. The population of Puerto Rico is 3.9 million, compared to almost 110,000 for the USVI territory. Do you think he has Puerto Rico’s interest in mind? Of course he did. Gov. deJongh said the proposal ignored almost 100 years of federal precedent and counter to all Congressional intent, and it would have severely harm the USVI economy in favor of Puerto Rico.
“The proposed amendment takes excise tax revenue paid by Virgin Islands rum makers on rum produced in the Virgin Islands and directly transfers it to Puerto Rico’s government coffers,” deJongh’s statement said. “Puerto Rico would end up with billions of dollars generated by rum production in the Virgin Islands. … Sen. LeMieux is directly attacked his fellow Americans in the Virgin Islands by doing Puerto Rico’s bidding.” Gov. deJongh continued by stating, “By promoting this amendment, Puerto Rico now seems willing to walk away from the long history of friendship and collaboration, which has linked America’s two Caribbean possessions.”
This phase of the “Rum Carry-Over War” has now ended. Let’s hope that each of these Caribbean U.S. Territories can move on to addressing the needs of their citizens instead of wasting the Congress’s time by proposing bills that have business to even be addressed. I look forward to any of your opinions and comments regarding this Rum War that just ended with the USVI – 1 and Puerto Rico – nil. Until next time…your Caribbean lifestyle reporter continues his work!
By: Tony Illia
Courtesy of: Bruce Hiatt of Luxury Realty Group
Condo hotels see 'severe' downward drop in value as credit for mortgages disappears
Checks are in the mail for Cosmopolitan Resort Casino homebuyers. On Feb. 23, Clark County District Court Judge Elizabeth Gonzales approved a class action settlement refunding partial homebuyer deposits at the $3.9 billion, still under construction Strip development. The move essentially eliminates residences at the twin tower high-rise complex, on 8.5 acres, at 3700 Las Vegas Blvd., South.
"Many legal experts said a settlement agreement was unlikely, and I'm glad our fight paid off," said Marquis & Aurbach managing partner Terry Coffing, whose Las Vegas law firm represented 100 units. "The refund checks are scheduled to be cut in April."
The 490-unit East Tower settled at 68 percent of homebuyers' deposits, which ranged from $115,000 to $350,000 per unit depending on size and location. Attorney's fees were 7.82 percent of that amount. Escrow deposits typically represent about 20 percent of the final purchase. Homebuyers can opt out of the settlement before March 29.
The deal follows a similar action last year on Cosmopolitan's 1,322-unit West Tower, which returned 74.4 percent of homebuyer deposits. A court settlement ordered the owner to payback roughly $140 million. Marquis & Aurbach had represented owners of 430 units inside the West Tower, or 32.5 percent of the total building. A sold-out East Tower could generate $112 million or more in down payments. Homebuyers had claimed numerous breaches of contract, including unmet completion deadlines. Several lawsuits were eventually combined into a single case.
"Those units have to be 35- to 40-percent upside down. What is the catalyst to now close those units?" said Marquis & Aurbach associate Nick Crosby. "There isn't a credit market for condo hotels."
Cosmopolitan homebuyers have been scrambling to get out from underneath their purchases, as many face challenges securing mortgages amid a frozen credit market. It makes the project's plans for condominiums unlikely moving forward. Plans had called for two glass hotel-condo towers with a combined 3,000 units perched atop a multilevel retail, casino and entertainment podium.
Deutsche Bank AG, which bought the distressed property during a foreclosure sale in 2008, recently wrote down the project value by $103 million. It marks the second write-off in less than a year for the Cosmopolitan. The development is tentatively scheduled to finish construction in December. Perini Building Co. is the general contractor, with Related Cos. the project manager.
Calls to Deutsche Bank spokesman John Gallagher for comment were not returned by press time.
Luxury condominiums are being valued differently today than a few years ago during the real estate boom. Rising unemployment and a deepening recession are fueling more widespread financial conservatism, as once bullish investors delay, defer and cancel large capital expenditures. It has largely seized condominium sales, say industry observers.
"It's probably the most dramatic property drop we have ever seen. We are starting to see 30 percent drops in condo hotel prices. The downward trend has been quite severe. It appears Las Vegas has not yet reached bottom for the hotel condo market," said Bruce Hiatt, owner of Luxury Realty Group Inc., a Las Vegas-based high-rise condominium brokerage company. "Today's buyer is much more aware of the current resale marketplace and those price points, which are very different from what they were a few years ago."
PROJECTS
Las Vegas Paving Corp. recently broke ground on a $246.5 million I-15 widening project from Tropicana Avenue to just south of Silverado Ranch Boulevard in Las Vegas. The design-build project will widen the freeway, add collector-distributor roads and redesign five interchanges. Other work calls for 26 new bridge segments, 35 miles of retaining walls and 1.5 miles of sound walls. The job will employ 70 designers and 300 people during the peak of construction activity. The Las Vegas Convention and Visitors Authority is providing $250 million in bond-backed financing. The project is scheduled to finish in March 2012.
Courtesy of: LuxuryRealEstate.com
Who’s Who in Luxury Real Estate is pleased to introduce our newest member, Blue Ridge Realty & Investments.
Blue Ridge Realty & Investments specializes in the acquisition of rustic mountain getaways, investment properties suitable for a student or vacation rental, resort condominiums or townhouses, or private family enclaves that can be passed from generation to generation.
Blue Ridge Realty has a team of expert real estate agents in the area collectively known as the “High Country” encompassing the villages of Boone, Blowing Rock, Valle Crucis, and Banner Elk; Watauga, Avery, and Ashe Counties in North Carolina; and Johnson County in Tennessee.
Since 1982, Blue Ridge Realty & Investments has been a consistent leading force in real estate sales in the High Country area. To learn more about Blue Ridge Realty & Investments, please visit http://www.blueridgerealty.net.
About Who’s Who in Luxury Real Estate
Who’s Who in Luxury Real Estate is an invitation only network representing the best luxury real estate firms and professionals from around the world. Each affiliated member is carefully selected to represent his/her market area. Who’s Who in Luxury Real Estate also hosts the industry leading Website www.LuxuryRealEstate.com (a 2009 Webby Award Honoree).
Courtesy of: Amanda Nickerson of Roche Realty
High End Home sales on Lake Winnipesaukee, New Hampshire have been gaining momentum since August 2009, showing an upward trend since the financial market meltdown in the Fall of 2008. Statistics from the Northern New England Real Estate Network indicated there were a total of 77 properties sold on Lake Winnipesaukee in 2009; 26 of those waterfront sales sold for over $1-million dollars. In the last half of 2009, approximately 20 of the 26 million dollar waterfront sales sold, showing a substantial improvement in the market.
In November of 2009, Roche Realty Group, Inc. made a record sale of the highest recorded sale on Lake Winnipesaukee at a price of $7,800,000.00. The listing and sale of this property was made from the combined efforts of John Goodhue, PK Zyla and Nancy Williams. According the John Goodhue, the listing agent of this spectacular property, “the property included 8.3 acres with 1,500ft of sandy shorefront on Meredith Bay. The property also included a remarkable stone boathouse, a primary residence and a beautiful stone and wrought iron wall surrounding the compound”. PK Zyla and Nancy Williams also commented “this was one of the finest parcels of land on Lake Winnipesaukee, with a huge sugar sand beach and offered dramatic sunsets”.
Roche Realty Group, Inc. officials indicated the 26 waterfront sales, well in excess of $1 million this year is the best indicator of strong optimism for the Lakes Region’s economy. Winnipesaukee is a nationally known drawing card for the region, with its 72sq. miles of water, 274 islands and almost 625 billion gallons of crystal clear water.
By Carina de Sousa of IRG International Realty Group
João Manso will be responsible for the overall day-to-day management of IRG International Realty Group and will be overseeing the performance on all levels. He will also be involved in business development.
João Manso has had a long career in Portuguese and international businesses and has been involved in big scale commercial and touristic residential developments. He is a member of Ordem dos Engenheiros and has been managing director of companies related to the resort/touristic industry.
Ole Jespersen, owner and managing director of IRG International Realty Group says: "It is a huge boost for our company that we are able to attract a capacity like João Manso to our company. He will bring a lot of experience with him not just professionally but, João having been involved in Portuguese business on top level, will also add to our already multi national business culture. His previous work in touristic residential developments fits well into one of IRG's core businesses and will strengthen our already leading role in this segment."
About IRG International Realty Group
IRG International Realty Group is the leading international brokerage company in Portugal and specializes in sales and marketing of Portuguese high-end and luxury residential real estate. IRG is the exclusive affiliate in Portugal of Christie’s Great Estates, a worldwide real estate network and subsidiary of the world’s oldest auction house, Christie’s. IRG’s head office is located in the prestigious Avenida da Liberdade in the heart of Lisbon and there are also boutique offices in Quinta do Lago, Algarve, Estoril and Kensington, London.
www.irgportugal.com
RISMEDIA, May 7, 2009 -Top agents from Daniel Gale Sotheby’s International Realty were recognized in two top residential sales categories at Long Island Business News’ 2009 Real Estate Awards, the company has announced.
Peggy Moriarty was honored as Top Producer of the Year (volume by dollars sold), and Margaret Trautmann, Barbara Candee and Rhonda Banker for Top Residential Sale-Nassau, for their roles in the sale of the Northwoods Estate in Oyster Bay Cove. Long Island Business News selected the honorees based on interviews, professional accomplishments and the impact of their work on Long Island economy.
“Our success is built on the hard work, professionalism and integrity of our agents,” said Daniel Gale Sotheby’s International Realty President and CEO Patricia Petersen. “We support that work ethic with an award-winning global marketing program and ongoing training that is among the best in the industry. I speak for the entire Daniel Gale organization when I say congratulations to them.”
For more information, visit www.danielgale.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
By Carina de Sousa of IRG International Realty Group
IRG International Realty Group assembled three leading exclusive developments to co-sponsor Portugal’s Tennis event of the year: The Estoril Open. The event takes place from May 2nd to May 10th and will be an excellent opportunity to expose the tournament’s spectators to the best this country has to offer in high-end real estate.
Troiaresort, Palácio Estoril Residências and Pine Hill Residences, although all different in location and product, have in common the pursuit of excellence and the Estoril Open 2009 boasts the perfect atmosphere for showing off these excellent developments.
Troiaresort, a project by Sonae Turismo, is located south of Lisbon on the spectacular Atlantic peninsula setting of Tróia. The project includes a marina, casino, conference centre as well as wonderful four and five star hotels which are now open and welcoming visitors. The resort boasts an offer of townhouses as well as plots for individual villas overlooking the golf course or the ocean and also apartments which are now completed.
Palácio Estoril Residências is set in the heart of the exclusive and historic residential resort town of Estoril. This magnificent development of 27 luxury apartments, from two to four bedrooms is adjacent to and served by the Hotel Palácio Estoril and with privileges at the Elements Spa by Banyan Tree, Estoril Golf and Cascais Marina. The project is being developed as a joint venture between Estoril Plage SA, owners of the Hotel Palácio, Estoril Golf, Banyan Tree Spa and operators of Cascais Marina in conjunction with Opway Imobiliáia SA. The apartments are considered some of the most luxurious in Portugal and completion is foreseen for 1st Qtr 2010.
Pine Hill Residences is a private, discreet development located within the well-known Vila Sol Spa & Golf Resort adjoining Vilamoura, in the Algarve. No expense has been spared in creating these 55 premium-quality residences. A hand-picked team of specialists has designed, built and equipped the resort and the individual properties to meet the highest of expectations in creating an atmosphere of unashamed luxury and elegance.
About IRG International Realty Group
IRG International Realty Group is one of the leading international brokerage companies in Portugal and specializes in sales of Portuguese high-end and luxury residential real estate. IRG is the exclusive affiliate in Portugal of Christie’s Great Estates, a worldwide real estate network and subsidiary of the world’s oldest auction house, Christie’s. IRG’s head office is located in the prestigious Avenida da Liberdade in the heart of Lisbon and there are also boutique offices in Quinta do Lago, Algarve, Estoril and Kensington, London.
By Janine Carey of Damianos Sotheby's International Realty
Nassau, Bahamas (March 30, 2009)—Damianos Sotheby’s International Realty in Nassau, Bahamas today announced that the Sotheby’s International Realty network is partnering with The Wall Street Journal to present the many values of real estate as a long-term investment and showcase unique properties from its network’s 10,700 sales associates located in more than 500 offices in 39 countries and territories worldwide.
The Sotheby’s International Realty brand and The Wall Street Journal will co-host The Business of Extraordinary Living on the publication’s Web site, www.wsj.com, designed to provide insights into the real estate market from the brand’s worldwide network.
In a section entitled The Address, the Business of Extraordinary Living will provide information about the properties represented by the Sotheby’s International Realty network. The Web site’s Insights section will feature data, statistics and other relevant market information. The Living section will focus on lifestyle trends including home styles, living, architecture and art. The Brand section will give an overview of the Sotheby’s International Realty network, its history and relationship with the Sotheby’s Auction House.
“This unique Web site was designed to meet the specialized needs of our customers and The Wall Street Journal’s readers,” said Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC. “Those readers are looking to grow their portfolios in today’s ever-changing market and look to The Wall Street Journal for its insights. The Business of Extraordinary Living will bring our brand’s unique perspective into the world of real estate, which always will be one of the best investments to grow long-term wealth.”
“This is an exciting tool for real estate consumers in our market and buyers around the world who want to purchase internationally such as in the Bahamian market. It’s a truly unique collaboration that will enable us to market our Bahamian listings to nearly 40 million consumers each month,” said George Damianos. “Among the many services Damianos Sotheby’s International Realty provides, we also serve the needs of those looking to build their wealth through long-term investments in real estate.”
Damianos Sotheby’s International Realty, serves the entire Bahamas and is headquartered in downtown Nassau with offices in Lyford Cay; Governor's Harbour and Spanish Wells Eleuthera; Marsh Harbour, Hope Town and Elbow Cay, Abaco; with associates in Treasure Cay, Abaco; Exuma, and Freeport. Damianos Sotheby’s International Realty Bahamas offers exclusive Sotheby’s International Realty marketing, advertising and referral services designed to attract well-qualified buyers to the firm’s property listings. In addition, the firm and its clients benefit from an association with the Sotheby’s auction house, which promotes real estate referral opportunities with auction house clientele.
About Sotheby’s International Realty Affiliates LLC
Founded in 1976 to provide independent brokerages with a powerful marketing and referral program for luxury listings, the Sotheby’s International Realty network was designed to connect the finest independent real estate companies to the most prestigious clientele in the world. In February 2004, Realogy Corporation, a global provider of real estate and relocation services, entered into a long-term strategic alliance with Sotheby’s, the operator of the auction house. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a full franchise system by Realogy’s subsidiary, Sotheby’s International Realty Affiliates LLC. Affiliations in the system are granted only to brokerages and individuals meeting strict qualifications. Sotheby’s International Realty Affiliates LLC supports its affiliates with a host of operational, marketing, recruiting, educational and business development resources. Franchise affiliates also benefit from an association with the venerable Sotheby’s auction house, established in 1744. For more information, visit www.sothebysrealty.com.
By Ole Jespersen of IRG International Realty Group
The Market Situation
Ole Jespersen, sole owner of IRG International Realty Group, says: “At every function - private or business - I am being asked about the market situation. This is not new or as a result of the present economic situation, but also happens in the good times. People like to hear about the property market as it is a topic that actually interests the majority of people. The simple fact is, the property market is the most influential factor for the private, national and the international economies. Just remember what started the ongoing situation: American sub prime lending.
IRG is in a unique situation to comment on the ongoing property financial trends and effects as we are not just a local Portuguese firm, but through our international affiliations and networks we receive constant information and updates from around the world. Within Portugal we are represented in key areas such as the Algarve, the Blue Coast, the Silver Coast and Estoril/Cascais & Sintra as well as Lisbon city. We are involved in normal brokerage (single properties mainly for private buyers) and the institutional and development market with resorts, hotels, residencies and golf courses.
We have for some years published an annual report on the Luxury Residential Tourism Market. The report has become a “reference work” within its area and is statistically based on historical factual figures. The report for this year will be published in May. The following comments are therefore based on observations and personal experiences.
Yes, the market is tough and has seen downward trends in specific sectors. Hardest hit is the low to middle market with especially off-plan, speculative apartment acquisitions. High debt financed purchases have become very scarce with banks no longer being willing lenders and this has had a severe overall effect for developers.
But still, prime locations, prime quality or landmark properties are still in demand. Yes, DEMAND. We are transacting a number of high profile properties in all key areas such as Quinta do Lago, Estoril, Cascais including Quinta da Marinha and Quinta Patino as well as some central Lisbon properties. Some deals are land, some deals are renovation properties and some are brand new, high quality villas and luxury apartments. We represent a number of high value, high quality, prime location residence projects where we are taking substantial reservations - even in this market.
Additionally we also have a number of clients waiting, waiting for THE deal or a distressed sale, but in the high end of the market there is still resilience to "vulture" price cuts. The market has stayed pretty stable which means transaction numbers have been reduced as buyers in general expect "deals". Most transactions also involve lengthy negotiations involving legal, tax and financial issues.
At IRG we are not just sitting it out. We are proactive, we are diligent and flexible and we adapt. And finally we try to create solutions for our clients - be it buyer or seller. For our institutional and development clients we are advising on new activities in the markets internationally and we are constantly working on new approaches to product, marketing and PR. We want to sell real estate as real estate is the catalyst for turning the markets.
Based on the above we will announce shortly a number of new business initiatives running alongside our main property mediation business. These initiatives will be an additional service for all our clients and will reflect our overall aim to be of service and to find solutions for our valued clients.
At IRG we are not pessimists - at the moment we are cautious optimists and we see great potential in the future. We always have to remember we are based in Portugal - the most ideal location for European short and long term holidaying, for the second home or for a change in life. Portugal has everything going for it. So let's make it happen together”.
About IRG International Realty Group
IRG International Realty Group is one of the leading international brokerage companies in Portugal and specializes in sales of Portuguese high-end and luxury residential real estate. IRG is the exclusive affiliate in Portugal of Christie’s Great Estates, a worldwide real estate network and subsidiary of the world’s oldest auction house, Christie’s. IRG’s Head Office is located in the prestigious Avenida da Liberdade in the heart of Lisbon and there are also boutique offices in Quinta do Lago in the Algarve, Estoril and in Kensington, London, United Kingdom.
www.irgportugal.com
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