Crazy for Condos

Time was when the American Dream began and ended with one thing: land. Owning land-even if it was just a modest lot in the suburbs-meant stability and security. Owning an apartment was a second-class choice, limited to those who couldn't afford land or who were obliged to live in too-crowded cities.

My, how times have changed.

Last year, according to the National Association of Realtors, the median sale price of condominium units topped that of single-family homes-$175,000 versus $171,600-for the first time. And, according to the group's statistics, condominiums led single-family homes in the rate of appreciation.

What happened? Economics and demographics finally converged in a way that made multi-family development more appealing to both builders and buyers.

First, land prices have soared, mandating that builders consider higher-density projects to earn a return on their investment. Second, baby boomers have entered late middle age, a time when hassle-free condominium living looks more appealing-especially if the surroundings are posh and the amenities are plentiful.

The result: Condos are popping up everywhere. Luxury multi-family development is particularly hot in Northeast Florida, where the Jacksonville skyline, the St. Johns River, the Intracoastal Waterway and the Atlantic Ocean provide spectacular views seemingly made to order for high-rise dwellers.

Real estate marketeers say young professionals, aging baby boomers and savvy retirees are all drawn to condominium living for essentially the same reason-a relatively hassle-free lifestyle.

"People want to be able to lock and leave," says Kristi Torgler, director of sales and marketing for Julian LeCraw & Company, an Atlanta-based real estate management firm. "If they need to leave town on business or vacation, they can lock the door and not give it a second thought."

Torgler's company is marketing several Jacksonville-area multi-family complexes, including Watersedge, a 20-unit townhome project near Atlantic Boulevard on the Intracoastal Waterway. The area, sometimes called Intracoastal West, is roughly halfway between downtown Jacksonville and the Beaches.

Watersedge, with individual units starting at $790,000, is part of Harbortown, a mixed-use development with a 150-slip marina scheduled to break ground this summer. Harbortown will also feature a clubhouse and a swimming pool along with retail shops and restaurants ringing a harborside promenade. The gated community, which will also offer condominiums and rental apartments, is planned to resemble a waterfront village.

"We haven't started selling those units yet and already there is tremendous interest," says Torgler. "About half the people who have shown an interest are people looking for a second home or investment property on the waterfront. The rest are downsizers who just don't want to have to worry about the yard and the house anymore."

Watersedge is only one of the upscale multi-family complexes going in at Harbortown. Centex's MiraVista is slightly more affordable, with condominium units starting at $480,000. Although only a few units remain in Phase I, reservations are now being accepted for units in Phase II.

Perhaps the most high-profile multi-family development in Northeast Florida is in downtown Jacksonville. The Shipyards, a TriLegacy Group project, is named for its location on property once owned by the city and used primarily for maritime operations since World War I. This remarkable 45-acre expanse of Northbank real estate will eventually encompass condominiums, townhomes, a hotel, restaurants, shops, parks, a jogging trail and a private marina on the St. Johns River.

One Shipyard Place, the first phase of the $860 million project, will consist of 100 luxury condominiums overlooking the marina. Units, priced from the high $400s to more than $1 million, will offer spectacular views of the downtown skyline and the colorfully lit bridges that span the river.

Adjacent to The Shipyards, the 206-unit Berkman Plaza high-rise apartment complex has been renamed The Plaza Condominiums. Amenities-which are comparable to those offered in a grand hotel-include housekeeping and laundry services, a gourmet deli, a salon and a 24-hour concierge to help procure tickets and make reservations. Large apartments with river views are commanding $700,000, according to representatives of McRae & Stolz, the Atlanta-based company handling the conversion.

Across the river on the city's Southbank, The Peninsula at St. Johns has just opened a sales office. American Land Ventures, the project's developer, plans a 36-story tower that will be the tallest residential structure in Northeast Florida. Units will be priced from the mid-$200s to the high $800s, with penthouses priced from $1 million. Retail and offices will take up the first nine floors, so every residential unit will offer expansive skyline and river views.

At the Beaches, the condominium market is also heating up. In Jacksonville Beach alone, five multi-family projects have been built in the past two years, four are under construction and at least 14 others are on the drawing board. That's remarkable considering that no new condominium complexes were built in Jacksonville Beach between 1987 and 2002. Now, they can't be built fast enough to keep pace with demand.

And while units in the most luxurious developments can cost a minimum of $500,000, that's still within reason when compared to oceanfront living in Southeast or Southwest Florida. Consequently, oceanfront businesses are finding it increasingly more lucrative to sell their property to developers.

For example, owners of First Street Grille have recently given developer Lee Underwood an option to buy their property at 807 N. First St. Underwood, who is building the Acquilas I and II condominiums nearby, wants room for more. And owners of the Atlantic Shores Motel at 923 S. First St. sold their property in 2002 to the Sofran Group, which is building Mirabella Condominiums. In February, the Jacksonville Beach Planning Commission okayed Chris Hionides's plans to build two condominium projects, one across the street from his Casa Marina Hotel at 704 N. First St. and another at 215 Sixth Ave.

Meanwhile, presales have been strong at WCI's Costa Verano, a high-rise in south Jacksonville Beach, where amenities will include a two-story grand salon, a surround-sound theater room, a state-of-the-art fitness center and spa, a social room with a wet bar and an outdoor recreation area with a resort-style pool overlooking the ocean. Units start in the $600s.

Also in Jacksonville Beach, presales are under way at two other luxury condominium developments-The Metropolitan and Le Meridien Villas. The Metropolitan is a mixed-use project that will feature retail and office space on the lower floors and residential units on the eighth and ninth floors. Residences will have 12-foot ceilings and floor-to-ceiling glass on exterior walls, with prices ranging from the $500s to more than $1 million for a penthouse.

Le Meridien Villas is an eight-story project that will feature gas fireplaces and covered balconies as well as private garage parking and an outdoor pool and spa. With prices ranging from the $600s to more than $1 million, Le Meridien Villas is poised to be a strong contender in this once sleepy coastal community's burgeoning luxury market.

So, while downtown is bursting with promise and the Beaches are booming, the suburban Southside has also emerged as a hotbed of condominium activity. But because Southside buyers tend to be young professionals and singles, prices are generally more affordable.

For example, Coconut Grove-based Deerwood Development LLC is developing Il Villagio along Touchton Road between Southside Boulevard and Gate Parkway. The project consists of 33 two- and three-story buildings, a clubhouse and a pool, with prices ranging from $150,000 to $285,000.

Pulte Homes, already a major player in the Southside condo sweepstakes, is building a 320-unit project called Point Meadows Place, which features a clubhouse, pool, fitness center, car detailing center, covered parking, a playground and jogging trails. Prices range from $121,200 to $162,200.

Beazer's Deerwood Place, with 192 units priced from the $200s, is also attracting young professionals with amenities including a pool, a health/fitness center and homeowner rates for memberships at the Serenata Beach Club in Ponte Vedra Beach.

Elsewhere in Jacksonville" target="_blank">Duval County, check out the much-anticipated Ortega River Club Condominiums, a 14-story, 35-unit project developed by Heyward Cantrell. It's the first new condominium project built in the exclusive Ortega area in nearly 20 years. Prices start at $480,000, although the 5,000-square-foot penthouse is expected to fetch $1.7 million.

In the historic Riverside neighborhood, a 13-story, 72-unit high-rise called VillaRiva overlooks the St. Johns. The project, by Flagship Communities LLC, will eventually also include six low-rise townhomes adjacent to the tower and fronting Riverside Avenue. Amenities include concierge services, a fitness center, a waterfront bar, riverfront terraces and a swimming pool. Prices range from $600,000 to $1.7 million.

In yet another signal that luxury condominiums are now solidly mainstream, the Jacksonville Symphony Guild has selected VillaRiva as the site of its 2005 Symphony/ASID Showhouse, an annual fund raiser. Two units will be outfitted by the region's top interior designers, then open to the public for tours.

In the bustling area between Arlington and the Beaches, developer John Sisk, who owns American Shelter Company and built The Cloisters in Atlantic Beach and The Colony in Ponte Vedra Beach, is now setting his sights on Jardin du Mer, which will ultimately encompass 13 buildings. Units, all of which contain fireplaces and nine-foot ceilings, range in price from $179,900 to $209,900.

A pioneer in the local condominium market, Vestcor has acquired property along the Intracoastal Waterway just south of Butler Boulevard, for development of Marina San Pablo, a $100 million, 113-unit condominium and marina project. Plans call for three nine-story buildings of 47 units, 36 units and 30 units. Prices range from $499,000 to $2.3 million.

Posh oceanfront condominiums are nothing new on Amelia Island in Nassau County. Phase I of developer Jim Hardwick's Dunes Club Villas at Amelia Island Plantation has sold out, and Phase II is underway with prices starting at $1.5 million. Also at Amelia Island Plantation, Spyglass will offer units starting at $1.4 million. It's the last new development slated for the pioneering master-planned community before build-out.

In St. Johns County, Coppenbarger Homes is developing Meditierra, an upscale condominium project in Ponte Vedra Beach. The two- and three-bedroom units will start at $620,000. Meditierra is unique in its intimate scale-just 26 units in seven buildings-and in its design, which makes the complex resemble seven large, Mediterranean-style single-family homes. Each unit features a charming private courtyard, which can be outfitted with a garden, a fountain, a spa or even a small private swimming pool.

Further south, the first condominium project in Palencia, a large mixed-use development, is being built on a 30-foot bluff overlooking a 15-acre lake next to the green of the ninth hole of the neighborhood's golf course. The Promenade, built by Hardwick and Company, will ultimately have 100 units in six buildings as well as a 29,000-square-foot golf clubhouse, a $3 million swim and fitness center, a tennis club and walking and jogging trails. Prices range from $500,000 to more than $1 million.

In World Golf Village, Laterra is attracting attention in part because it is built around a luxurious, European-style spa with health, fitness and beauty facilities. Units are priced from $200,000 to $500,000. Other condominium developments in World Golf Village include The Legends ($120,000 to $220,000) and The Residences ($330,000 to $600,000).

Fast-growing Jacksonville" target="_blank">Flagler County, with its lengthy shoreline, remains a mecca for luxurious condominium living. Hammock Dunes, a private oceanfront community with two signature golf courses, offers units priced from the $300s to more than $2 million. LandMar's Grand Haven, the Ginn Company's Hammock Beach and Centex's Cinnamon Beach also offer posh condominium units with all the perks.

Will there be buyers for all these new units? A Beaches real estate broker smiles at the question.

"There's one problem with the condo market in Northeast Florida," he says. "There aren't enough of them."