Homeowner gets $5.2 million for house assessed at $250,000

Article Courtesy of The Sun Sentinel

By Larry Barszewski

Published February 3, 2017

 

Robert Larsen just hit the jackpot.

A developer on Jan. 23 paid $5.25 million for Larsen's home in downtown's Flagler Village neighborhood — $5 million more than it was assessed at.

 

Nearby, the owner of Josef's Clock & Watch Shop, a North Andrews Avenue fixture since 1993, received $3.85 million last year for his storefront, which was assessed at $423,000.

In the same block, property owner John Lacz got $2 million for a two-story office building assessed at $379,000, and businessman Antonio Curatolo received $1.6 million for an auto dealer property assessed at $502,000.

These owners cashed in on their neighborhood's emergence as a trendy place to live for millennials and retirees alike, illustrating what can happen in growing South Florida when a neighborhood comes into vogue.

Flagler Village developers are willing to pay big money because they believe even more people want to move to the once-derelict area north of Broward Boulevard, now home to apartments, shops and galleries.

Areas like Wynwood in Miami have generated big paydays, too, but "Flagler Village is probably the hottest market where you've seen this type of development," said Stephen B. McWilliam, head of Florida State Realty Group in Fort Lauderdale.

Developer BR ArchCo Flagler Village LLC has assembled a block of properties to build an apartment complex in Fort Lauderdale's Flagler Village. Some property owners got high prices for their parcels.



Property owners in sought-after locations can see offers for their property grow astronomically if they don't rush to sign a deal.

"It was a lot of hard work and a lot of nerves of steel to get to $5.25 [million]. It wasn't just dumb luck," said Larsen, who was the last holdout.
He was negotiating with BR ArchCo Flagler Village LLC, which eventually paid a total of $23.2 million for all of the parcels in the block bordered by North Andrews Avenue, Sistrunk Boulevard, Northeast First Avenue and Northeast Fifth Street.

The developer has plans for an apartment complex with ground-level shops.

Larsen said he was initially offered $1.25 million several years ago for the Northeast First Avenue property he bought in 1994. He kept negotiating but knew he could lose out if the company decided his property wasn't worth it and just built around it instead.

"The number got so high, I would be stupid to turn it down," said Larsen, who is president of the Flagler Village Civic Association.

ArchCo Residential CEO Neil Brown said that while the price for Larsen's lot may seem high, developers determine ahead of time the average price they're willing to pay to make a project worthwhile. The more purchases they get below that average, the more they have available to go after holdouts.

"I think everyone on the block did very well," Brown said. "If everyone got the same as Larsen, I couldn't have afforded to do the project."

Another property owner who did well, Josef Hirzinger, first took a chance on downtown with his clock shop in 1993 when there wasn't much else going on in the Flagler Village area.

"It was in very bad shape. A lot of buildings were boarded up. But I do like downtown," Hirzinger said. "I saw a potential for the future because it was so close to downtown."

But he didn't see the windfall that would be his when that future arrived. Hirzinger said Andrews Avenue, a historic business thoroughfare in the city, was a great address to have and he tried to figure out a way to sell and to stay. In the end, he has decided to pack up and move his shop to Federal Highway.

Hirzinger, who received nine times more than his shop is assessed for, said he enjoys his profession and he's not about to make lifestyle changes because of his good fortune.

"Money helps, but it's not what makes you happy," he said.Flagler Village developers are willing to pay big money because they believe even more people want to move to the once-derelict area north of Broward Boulevard, now home to apartments, shops and galleries.

Areas like Wynwood in Miami have generated big paydays, too, but "Flagler Village is probably the hottest market where you've seen this type of development," said Stephen B. McWilliam, head of Florida State Realty Group in Fort Lauderdale.

Property owners in sought-after locations can see offers for their property grow astronomically if they don't rush to sign a deal.

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