The Daily Soak - July 28

4 Years After Frances, Palm Beach Condo Residents Coming Home

Frances...Jeanne...Wilma...3 names residents of the Singer Island Tiara condominium won't soon forget. The 2004-05 hurricanes rocked the 320-unit high-rise and forced the evacuation of all of her residents. Images of the Tiara's exposed facade and gutted units were staples of nightly news broadcasts post-Frances transforming the luxury condo into what the Palm Beach Post called "a symbol of the perils of coastal living." Insurance only covered 60% of the $140 million condo renovation project, so evicted residents had to pay average special assessments of $130,000 on top of $10,000 a year in taxes and HOA fees. And believe it or not, now comes the hard part: moving back in 320 displaced unit owners and all of their furniture and appliances...with only 2 working elevators. Residents can also look forward to another $4 million assessment in order to rebuild their tennis courts, garage roof and gazebo. Originally built in 1976, the Tiara remains the tallest building in Palm Beach County.


Move Over, Furby: Florida Homeowners Try Their Luck On eBay

It was only a matter of time. Long considered the domain of cheap collectibles, eBay (Chart) began making inroads in the U.S. car market when the site launched eBay Motors in 2000. Today, an automobile sells on the site every 52 seconds accounting for $18 billion a year in revenue. With a sizable segment of U.S. consumers comfortable with the concept of buying autos via online auctions, eBay has moved on to the next logical big ticket item: real estate. Over 600 Florida real estate auctions are currently posted on eBay ranging from raw land in Punta Gorda to Disney timeshare deeds to a new loft in downtown Miami. Reviews so far have been mixed with Florida homeowners, according to Susan Taylor Martin's article in the St. Pete Times. Sellers say their listings are often met with skepticism from potential buyers, but they won't pass up an opportunity to showcase their homes for eBay's 84 million users.


Community Bank Takes A Measured Approach to Foreclosures

Last week HB.com covered the foreclosure panic facing many Southwest Florida community banks, but an Englewood-based bank is taking it all in stride. Despite $38 million in past-due loans, Peninsula Bank has only filed $5 million worth of foreclosure suits on a mere 13 properties. CEO Simon Portnoy acknowledges Peninsula made some bad loans ("Things got away from us a bit."), but he is comfortable renegotiating loan terms with the majority of his borrowers like Miami-based Sarasota Palms LLC which is doing a condo-conversion project located here and Michigan-based Punta Gorda Hotel LLC which bought and old waterfront Best Western in Punta Gorda. And even if some of Peninsula's borrowers eventually default, Portnoy is bullish on the bank's role in the burgeoning REO sector, "We are strict underwriters and effective collectors. We have a lot of equity and a lot of people want to buy foreclosed properties from us."