Article
Courtesy of The Sun Sentinel
By Paul
Owers
Published January 3, 2016
The mood
is mostly upbeat these days at Royal Poinciana Townhomes in Boca Raton.
After years of uncertainty, residents there finally have stability.
"Now
they're in control of their own long-term plan," real estate broker Jim
Balistreri said.
Balistreri Realty and Brenner Real Estate Group said they have sold the last
31 units in the once-struggling gated community north of Yamato Road off
Dixie Highway. The 90-unit Royal Poinciana is sold out and finally in the
hands of the homeowners' association.
Planned
during the later stages of the housing boom, the project hit the market in
2007, in the midst of the worst downturn since the Great Depression.
The
developer, New Century Hidden Valley, ultimately lost the complex in
foreclosure with about half of the units unsold. A bulk buyer stepped in two
years ago, bought the available units and rented them out until buyers
returned to the market.
The two-,
three- and four-bedroom townhomes, with Spanish Colonial facades and wide
floor plans, originally were marketed as luxury properties.
The most
expensive units were priced in the low $600,000s, even though there are no
water views or big backyards. The only shared amenity is a swimming pool,
and the development sits next to train tracks.
"I think
this is an example of the over-exuberance of the condo boom in the last
decade," said Jack McCabe, a housing analyst in Deerfield Beach. "A lot of
developers were sold on the notion they could build luxury properties
anywhere. But they didn't understand the marketplace or timing."
In May
2013, Sabal Financial Group, an investment firm in Newport Beach, Calif.,
bought the unsold units in bulk for $11.4 million.
"There
was a period there when people didn't know what was going on, and there
wasn't a lot of information available," said Peter DeVilliers, president of
the homeowners' association. "Then we heard that there had been a bulk sale,
and none of us understood what a bulk sale was."
The plan,
as they later learned, was for Sabal to fill the unsold units with renters
and invest money in improvements until demand picked up.
Last
fall, with buyers back in the market and prices steadily on the rise, Sabal
hired Balistreri and Brenner to jointly launch a sales program for the
remaining units.
Andrea
Brenner, marketing director for Brenner Real Estate, said the firms
established a sales center in one of the empty models. To their surprise,
they had to keep moving as buyers came in and wanted that particular unit.
Although
prices are still rising, Royal Poinciana values are nowhere near the
previous highs. The 31 units ultimately sold in a range from $325,000 to
$450,000.
"Even in
today's market, pricing is still important," Balistreri said. "I don't care
how good it looks. It has to be well-priced. If it's not, it won't sell."
The
owners who bought at peak prices in 2007 likely are still "underwater" on
their mortgages, and it may be years before they're able to resell the
units. Still, Balistreri said Royal Poinciana's rebound is a microcosm of
the housing market itself.
DeVilliers, the HOA president, said the board is going through its first
budget process and starting to determine priorities. Some of the trees and
landscaping look a little overgrown, and the HOA also hopes to reduce fees
for owners by getting a better deal on insurance.
DeVilliers proudly points out that most of the development is owner-occupied
now, and not a single home is for sale.
"There's
a lot of optimism and enthusiasm for the community," he said. |