By Peter Roos & Joan Walker
Tourism and real estate have long been the drivers of the local economy in south Pinellas. Pass-A-Grille was a beach and fishing tourist destination long before it became one of west Florida’s most exclusive and expensive places to call home. Especially in the waterfront communities and on the barrier islands, increasing home values have provided many property owners with a comfortable retirement.
When interest rates were low, inventories were almost non-existent. Clear through the pandemic, top local Realtors were reporting multiple offers over list price at the first open house. Thankfully, the Fed’s interest raising efforts slowed inflation and has left the local real estate scene a little saner. Rising interest rates priced many out of their would-be homes. Others just decided to keep their options open. Still others were affected by war in the Middle East.
At this point there are a number of alternatives available at a variety of price points and properties are taking long enough to sell that we sometimes see them in two and three monthly ads. For several years Jim Beggins wrote a monthly real estate column, and his friend Tom Broderson wrote a popular column on property law. Danielle Vaughn acquired the law practice and has continued the contribution of advice columns on property law, estates and trusts.
Marina Bay, an amazing waterfront community next to Eckerd College on the Pinellas Bayway, has been advertising on page 5 in Paradise News for years now. They have been building the only community in the entire county to receive the Fortified Gold™ Designation. Their Marina Pointe ll Condominiums cover an entire floor each with just three “penthouse type” 4 BR 4 BA units each with a dedicated two-car garage under the dwelling.
Most of the top real estate salespeople in our market area advertise in Paradise News. There are smaller ads by agencies like Frank Hurley & Associates and Pam Moll with Coldwell Banker. There are two ad pages from Remax, two from Compass including the Salamone Team in Tierra Verde and Downtown St. Petersburg, Tammy Campbell Plumber McNelis head of The CPM Team, plus Melinda Pletcher of Smith & Associates with the front cover story last May and the back cover ad ever since.
With a vengeance since retiring as commissioner from Pass-a-Grille and Vina Del Mar, Melinda has focused her considerable talents on listing, fixing up, staging, and selling luxury homes. She is the top realtor in St. Pete Beach and Top 20 in the county, with $44 million in sales in the past year. There is a lot of work behind those numbers; blood, sweat, and tears too, Melinda is not afraid to say. Some of the properties she agrees to put on the market need a great deal of work before they can be shown. If the sellers do not have the money to do what is necessary, she sometimes puts her own money at risk to make it more acceptable. Sometimes landscaping, electrical and HVAC repairs are needed. “You cannot sell an unsafe home or one that cannot be heated and cooled. Knowing people who can respond quickly at a fair price is key to getting the property on the market,” says Melinda.
Joan Walker, Senior Broker Associate, Sunshine Professional Realty Corp., and a Licensed Mortgage Originator – NMLS 312081 with Innovative Mortgage Services, Inc., recently completed state required engineering studies and reserve restructuring for Pass-A-Grille’s Butler House, perhaps the oldest condo building on the beaches. Joan’s winter blog is entitled “Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024.” This is a good read for current market insight which Joan is letting us reproduce here:
“There may be a unique opportunity right now for buyers, a window in our real estate markets which especially applies to our established coastal condo communities. Building structural integrity is being scrutinized by Florida licensed engineers, structures are being updated and modified, and are, or soon will be, in better condition than they have ever been since many of us have been old enough to buy one their reserve schedules for maintenance and timely, reasonable replacement, including mechanical, structural, electrical, plumbing and safety elements, is now highly regulated, providing peace of mind going forward for new owners as well as existing owners.
Condo buyers, especially first-time condo buyers, have historically been concerned about the stability of monthly dues assessments and unexpected or pending special assessments. They should feel far more comfortable now than in the past. National surveys say sales prices are not expected to decrease as many buyers hoped. If interest rates continue retreat, I don’t believe we should assume prices will drop. Inventory remains tight. But the sellers who have decided to put their units on the market now are motivated.
Florida SB-4D, or 2022-269, Laws of Florida, effective May 26, 2022, was the legislation that came about rather quickly in the traumatic months following the June 24, 2021, collapse of the 12-story beach- front Champlain Tower condominium in a Miami suburb. This legislation is transformational, containing arguably the most significant changes in condominium and cooperative statutes ever. It should prove to have significant effects on affordability and unit values, as well as public concerns and perceptions of safety issues involved in condominium living. To briefly recap Milestone and SIRS mandated by the State of Florida: All condos which are 3 floors or higher are required to complete the Milestone study prior to December 31, 2024, or within 180 days of official notice to do so, which analyzes substantial “structural weakness” or material deterioration, if any. If repair or replacement is indicated the situation must be addressed within 365 days. Some communities have arranged to have an engineering firm oversee specific contracting work prior to scheduling their formal engineer-sealed on-site state inspections.
Condominium communities have been calling on Reserve Study firms to help navigate evolving condominium reserve requirements. A couple years ago condo communities could actually vote to waive reserves altogether, or minimally, reserve only for roof, painting, and paving. Associations were also allowed to fund reserves at less than 100%, for instance, 75% funding in the budget. Now there will be a catch up to arrive at a 100% funding plan for all condominium communities in the state of Florida.
State reserve mandates now contain a greatly expanded list which adds general elements such as electrical, plumbing, fire prevention; specific elements such as elevator, building HVAC, windows…i.e. any elements contributing to structural integrity or safety or where there is determined to be deferred maintenance. It can be complicated and where issues arise, unusual assessments could be necessary, or alternative funding initiatives, such as a corporate loan, the route I took as treasurer for my small historic condo in Pass-a-Grille.
The new legislation requires older buildings of three or more stories to conduct Milestone and SIRS (Structural Integrity Reports), sealed by an authorized architect or engineer. Every applicable condominium was required to report to the state last year and get on their list for compliance. A statewide shortage of qualified engineers is expected.
The Milestone and SIRS are essentially a Reserve Study with defined factors of structure and safety to be scrutinized by authorized engineers at an on-site inspection as required by the new legislation. These reports must be completed prior to Dec. 31, or within 180 days of notification by local municipality.
Whether three stories+ or less, no condominium community will have an exemption regarding the new prohibition against waiving or reducing full funding of certain statutory reserves. This legislation will affect every single condominium community in the state of Florida.
The SIRS, Structural Integrity Reserve Study, is required of all condos in our state no matter the height. It is a reserve planning tool, to incorporate the integrity of specific components into budget planning, to be adopted before 2025. Any budget after December must adopt the SIRS and provide full funding for the required components. There is no guess work.
Condo ownership is a huge segment of Florida real estate. It is a signature, highly popular Florida lifestyle choice, offering shared maintenance expense, which often comes with extensive amenities, preferred by part time owners, by those who travel a lot, by those who downsize from a single-family home, by busy professionals and retirees alike who need or prefer maintenance-free living.
In my generally eclectic local market, the beaches, especially Pass-a-Grille, two like properties in a given location may not come on the market for years. This advice has held true, if you find what you want, and you can afford to buy it, get in there and buy it. In the 36 years I have been involved in the real estate market here, I have not known anyone who was sorry they bought their property here, only those who did not. I have been fortunate to be involved in a number of recent condominium transactions, as a realtor and as a Condo Board Director, in a 28-year-old building, a 50-year-old building, and a 100+ year old building. Do not put off buying your condo. Get educated. This is Florida and condominiums are the most popular lifestyle choice, offering shared maintenance expense, which often comes with extensive amenities, preferred by part time owners, by those who travel a lot, by those who downsize from a single-family home, by busy professionals and retirees alike who need or prefer maintenance-free living.
Learn how the condominium you are considering is financially positioned now, and how the association is addressing compliance issues, so you are comfortable where the budget planning is headed.
Check how well the property has been maintained in general and focus on big ticket items such as elevators and roofs and facades/balconies/rebar. And be realistic, i.e. replacing old, galvanized pipes could be an issue in buildings dating from the 70’s, but it could also be a manageable process, especially where the community location is outstanding.
Study the financials provided by your realtor at or before time of contract, specifically the Reserve schedules. Ask to see the minutes of meetings for the past 12 months, what has been discussed or put on record. And ask about the Milestone and SIRS inspections and reports.”
Joan has a rare 2-BR Point Pass-A-Grille unit, #310 listed for $879,000, and has Unit 5N at Pointe Towers, an exceptional 2 BR condo for sale, 555 Gulf Way, asking $1,125,000. She is looking for more properties in the area to list for sale. To reach Joan Walker, call 727.580.0822, email Joan@GulfToGlobalLLC.com or visit www.GulfToGlobalRealEstate.com.
Tourism remains strong enough that new owners of the two largest resorts in St. Pete Beach–Sirata and TradeWinds–want to substantially rebuild and expand their resorts. A continuation of the Sirata Resort expansion review by the commission was to be heard at the next commission meeting, and in the meantime 80% of the people on the commission have changed. A lawsuit is being threatened over how the commission changes were handled. So, the future of resort expansion is still a big question in St. Pete Beach as 2024 height of season arrives.