Fort Lauderdale portfolio including famed Elbo Room hits market: $7.8M

Bar opened before World War II and became beach landmark

April 28, 2016 0elbo room6:00PM

A Fort Lauderdale retail portfolio that includes the beach’s landmark Elbo Room bar just hit the market with an asking price of $7.75 million. The listing, announced by brokerage Marcus & Millichap on Thursday, includes three adjoined retail buildings at 3001 East Las Olas Boulevard. Together they total about 10,440 square feet, so their asking price breaks down to about $742 per square foot. The first, western-most building measures 5,820 square feet and has three retail tenants on the ground floor, with a vacant second floor. Its occupants include two beachwear shops and a pizza parlor. Next door is a squat 1,050-square-foot building that is fully occupied by a tattoo shop and a liquor store. And finally, the third parcel belongs to the Elbo Room, a rowdy cash-only bar across the street from the ocean. It first opened before World War II and was even featured briefly in the coming-of-age movie “Where the Boys Are.” The two-story dive measures 3,570 square feet. County records show all three parcels are owned by Dr. Richard Steinbrook, a physician who specializes in psychiatry. His original purchase price could not be found. Marcus & Millichap’s Scott Sandelin and Edward Romo are marketing the property. “Any investment required to modernize this property will be rewarded with the ability to command top rents,” Sandelin wrote in the listing announcement. — Sean Stewart-Muniz

Norman Van Aken, Chef is bringing his cooking school & restaurant to Wynwood

Wynwood Arcade and Norman Van AkenThe James Beard award-winning chef will open a restaurant and cooking school at East End Capital’s Wynwood Arcade, a retail and restaurant project with tenants that include men’s clothing store Bonobos, fashion retailer Muse, the Salty Donut and furniture store Patrizia Bozzi Design. Van Aken is leasing a 5,500-square-foot restaurant space with a rooftop bar and lounge at the arcade, an adaptive re-use mixed-use development. There, he’ll open a Caribbean and Latin American-influenced restaurant along with co-owners Candace Walsh and Susan Buckley, who have worked with Ace Hotels, Il Mulino and the Spotted Pig. In the Kitchen with Norman Van Aken will span 2,200 square feet and offer programs that teach cuisines and cooking techniques, according to a press release.

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Hurricane Season (June 1- November 30), let’s talk Flood Insurance.

“Flood insurance is expensive”, “the house I’m looking at isn’t in a flood zone so why should I have it? When paying cash, it is not required.”

The national average premium for flood insurance is $700 per year. In Ft Lauderdale, flood insurance on a typical 100’ waterfront home on the East side of town is approximately $875 per year. OK, that means that we’re 1.25 times the national average. The average claim nationally in the past 5 years has been about $42,000. So using that same equation, that means that the average claim in Ft Lauderdale is about $52,500. The figures I’ve used are for a primary residence which is defined as a location where you (or your spouse) will live for more that 50% of the 365 days following the effective date of the policy. The days don’t have to be consecutive either. There’s usually a surcharge of approximately $250 if this won’t be your primary home. There is a deductible of about $5,000 on this kind of policy and a 30 day waiting period from the time you purchase the policy until the coverage goes into effect.

More than 20% of all flood claims are for homes not in a flood zone! Extra heavy rainfall can cause a flash flood in any neighborhood anywhere, even those not in flood zones. The good news is that Flood Insurance in non flood zone designated neighborhoods is less expensive!

If your home is in a designated flood zone will require you to have Flood Insurance as a condition of your loan in addition to the homeowner’s policy they require. Why? Because homes in these neighborhoods are more likely to experience a flood than a fire, so your friendly banker is going with statistical evidence. Since most lending institutions aren’t in the mortgage business, the only thing they’re getting from your Flood Insurance policy is the knowledge that if there is a flood, there will be money there to get your family’s life back to where it was pre-flood so you can continue to make your mortgage payments. Think about the people who had Flood Insurance after Hurricane Sandy in 2012 and those who didn’t. While there is (limited) Federal disaster assistance it’s usually in the form of a loan that has to be paid back with interest. So even if you’re paying cash, in 30 years the average $875 per year premium will have cost you $26,250 which happens to be exactly 50% of the $52,500 claim example I used earlier.


Luxury hotel, condos approved for Via Mizner in Boca’s downtown

April 7, 2016: “Home Prices Not Likely To Fall in Ft Lauderdale.”

Home prices are up in nearly every U.S. metro

The Arch risk index analyzes median home prices from the Federal Housing Finance Agency while factoring in regional unemployment rates, affordability, change in population, housing starts and delinquent mortgages.

The South Florida housing market is strong, but sales and prices are starting to cool, analysts say.

Still, Brad Hunter, the Palm Beach County-based chief economist for the Metro study research firm, said he isn’t concerned about a market tumble.

“One could easily make a strong case that prices will keep moving up, albeit at a slower pace,” he said. “I think it’s a single-digit probability that we see a real decline in home prices.”

Hunter added that even if FHFA median prices fall, that just might mean more lower- and mid-priced homes are selling and not indicate values of all homes are on the decline.

Jack McCabe, an analyst in Deerfield Beach, said that’s exactly what could happen. While a housing slowdown will continue through 2016, he expects prices of luxury homes and condominiums to be most affected. Strong demand and limited supply of homes in lower price ranges will continue to nudge values of those properties higher, he said.

“This is not going to be a total market crash like it was last decade,” McCabe said.

Ten-X, an online real estate marketplace in Irvine, Calif., released a report Thursday showing the top real estate markets for the spring. Palm Beach County was fourth, while Broward was fifth. Miami-Dade ranked 19.

Seattle was No. 1, while Portland, Ore., was second. Ten-X said it ranked markets based on home price increases, affordability and future demand as a result of economic and demographic conditions.

“Florida, in general, seems to be doing really well,” said Rick Sharga, executive vice president of Ten-X. “Of the states that were hit hardest during the crash, Florida still has the most room to grow to get back to peak housing prices.”

While most housing forecasts are optimistic, there are concerns brewing.

Mortgage company Freddie Mac said last week that affordability is becoming more of an issue in South Florida because wages aren’t keeping pace with home prices. And earlier this year, Fitch Ratings said homes in the tri-county region are overvalued.

Palm Beach County homes are above value by 5 percent to 10 percent, according to Fitch, while Broward properties are overvalued by 10 percent to 15 percent.

Fitch said Miami-Dade County was 15 percent to 20 percent above value, matching Phoenix, Riverside, Calif., and San Francisco as the most overpriced regions among major metro areas nationwide.