Palm Coast Builder Capitalizes on Low Lot Prices
For the second time, SeaGate Homes picks up building lots at another builder’s expense.
Palm Coast, Florida – September 26, 2008 – Palm Coast, Florida home builder SeaGate Homes recently closed on the purchase of 55 Palm Coast lots from Holiday Builders, Inc. of Florida LLC. The purchase signals confidence in Palm Coast’s long term housing market. "We plan to start specs on a handful of them this year and place a number of them in our lot inventory for prospective customers," says SeaGate president, Robert Gazzoli.
Holiday Builders purchased the 55 home sites at the peak of Palm Coast’s real estate market, accumulating the properties during the last half of 2005, paying between $75,000 and $77,000 for the majority of them. MLS records show that the median price paid for Palm Coast Lots (excluding those fronting salt water canals) topped out at $77,000. The median selling price has since dropped to $25,000. Public records show that SeaGate paid an average price of $11,127.
This is the second time SeaGate Homes has benefitted from a builder exiting the local market. In late ’07, they bulk purchased about 50 lots from Masterpiece Homes for an average price slightly above $20,000 each. Masterpiece paid about $65,000 apiece.
Palm Coast lots more closely represent a commodity than any other sector of the local real estate market. They were platted when Palm Coast was planned by ITT. Of over 40,000 lots, some are situated on salt water canals, others along golf courses, but most are nearly interchangeable 10,000 square foot lots. The lots making up SeaGate’s purchases fall into this category and are scattered throughout the city.
Not reflected in individual lot sales
This purchase will allow them to price new homes at very reasonable level. That may be required as the cost of building materials has gone way up due to energy cost. Speculation homes will draw buyers for all homes that are forsale, as everyone loves new homes but not all can afford them. The lot prices that were paid, are typical of the lot prices in the late 1990’s.
lower lot prices to come
Palm coast lot prices will trend down for all of 2009. The less desirable lots will probably bottom out at 8 to 10k.
Designated and Recorded Lots in FTC Agreement of 1
Wow…Congraduations Seagate!
For those new to the area, ITT Levitt/ later ICDC ‘designated’ and ‘recorded’ lots/areas in Palm Coast. You can see how it was then shaped by the Agreement with the Federal Trade Commission. Remember…Palm Coast was, for years, initially offered as a 100,000+ Acre Planned Community – New Town – largest in the United States; and was advertised as a water-themed Community ( canals) with FOUR Golf Courses.
You can still see the streets – Country Club Place, Cambridge Court , and Cypress Court designations ( with their ‘Perpetual’ Easements) on Google Earth. Boy..the lucky one to get all those lots there (where the Welcome Center Tower, Formal Gardens , and the ‘Exhibit Area’ there, which was all demolished) . Anyone know why all that area is not being required to be maintainted since it once was an Improved Area?
N-E way..here is the Synopsis of ICDC Consent Agreement with the Federal Trade Commission on 1975.
August 1976
Mr. and Mrs. George E. Chuddy
28 Lake Drive
Darien,Connecticut 006820
Dear Mr. and Mrs. Chuddy:
Because you have made a commitment in Palm Coast by establishing your home here, we believe you should be aware of an agreement that we recently reached with the Federal Trade Commission.
ITT Community Development Corporation ( ICDC) has signed a Conssent Agreement withe the Federal Trade Commission (FTC) concerning the furture development of Palm Coast. Signing the agreement does not constitute an admission that any law has been violated, as the agreement itself states. We feel the agreement is important in order to attain our primary goal — the development of Palm Coast as a balanced, well-rounded community.
An important part of the Consent Agreement calls for the execution of plans, within six years, which we believe, in the long run, will be good for Palm Coast. In brief, among other things , we have agreed to the following:
1. A shopping center with at least 400,000 square feet of floor space will be provided.We are already in contact with prospective developers of individual stores, including a supermarket.
2. With appropriate governmental agreement, a traffic interchange on Interstate Highway 95 will be constructed to serve Palm Coast according to plans we submitted to the Florida Department of Transportation in August 1972. ICDC will pay for the interchange as originally designed.
3. An office and research park area will be developed with appropriate roads and utilities to serve it and landscaping to make it an attractive part of Palm Coast. Planning for this already is under way.
4. A multi-purpose office building, with at least 5,000 square feet of floor space, will be constructed for tenants in the office and reserch park. This structure, also, is under planning.
5. We will move the headquarters of ICDC to Palm Coast. We plan to be substantial employer contributing much to the economy of Palm Coast and Flagler County.
The agreement also provides for us to restrict our developoment efforts to 42,000 acres for a period of 15 years ( with possible extension for another five years). This will allow appropriate construction in areas set aside for commercial establishments, light industry, recreation, preservation and conservation and other residential uses. Moreover, during this 15- or 20-year period, sales will be limited to 18,000 registered lots of which over 36,000 already have been sold.
The aforementioned are some of the most important points contained in the Consent Agreement as it affect you and the balanced development of Palm Coast. You will also be interested in knonwing of additional projects that we believe further enhance the community.. Here are some examples:
We have donated two acres of land, adjoining the furture Emergency Services Building site, to the Palm Coast branch of the YMCA to be used as the location fo a Community Activities Center. We will bear the cost of constructing this facility for all community residents and for sharing in operational expenses during its first three years — a gift totalling more than $400,000.
We have provided as a gift a site of 57 acres to the Flagler County School Barrd for a junior-senior high school. The first class of proud seniors was graduated from Flagler-Palm Coast High School last spring.
We have designated a number of sites for recreation parks, preservation and conservation, and other public areas. One site, in Section 1-A, now is being developed and a paved bicycle path has been constructed. Another bike path, starting near the Yacht Club, is in use. ((( He’s speaking of the first Yacht Club we had which was replaced by the second Shearaon we had – called the Harborside Sheraton at the end of Club House Drive – you see, the Developer promised and delivered, with NO disclaimers: A Yacht and Swim Club, a Tennis Club, Marina and Public Boat Ramp, a Full Professional complete Golf Course with driving range, putting green, and Contemporary Clubhouse. These were elements shown to thousands of Prospective Buyers on "The Companys’ official ‘Guided Tour’ run by their big FLEET of, Vans, Jitneys, and even a London Bus. We all paid a HUGE premium , sometimes hundreds and thousands over TWICE the price of a ‘standard lot’, to be in these sections, and Palm Coast was promoted and advertised as a miles of Canals and a Four Golf Course Community. )))
We are working with the Palm Coast Civic Association so that Palm Coast residents can form a legal entity to which we can donate oa one-acre site and an Emergency Services Building to house fire and security forces, an ambulance, and facilities for community activities. A preliminary blueprint fo the structure has been approved by a committeee from the Community.
As you know, we donated a $36,000 pumper fire truck to the Palm Coast Volunteer Fire Department , which will be stationed in the Emergency Services Building..
Palm Coast’s first church building, St. Mark by the Sea Lutheran Church, ws dedicated on the morning of July 4. Catholic and Baptist church organizations have purchased sites for their proposed churches. And Temple Beth Shalom is considering building a Synagogue. We at ICDC are very pleased, as we know citizens of Palm Coast are, to witness this growth and progress in the bitally important religioius life of our community.
Palm Coast’s first financial institution, a branch of the Security First Federal Savings and Loan Association, recently opened for business. We believe others will follow with the growth of the community.
These and many other facilitites will be needed to serve Palm Coast’s growing population. And it is growing. During the last nine months, construction of over 200 homes began. We now have over 1,000 people living and enjoying the good life at Palm Coast.
In closing, let me assure you that the ITT Community Development Corporation believes very strongly in the furture of Palm Coast and that we are determined that it will grow and progress in a balanced and healthy manner.
Sincerely yours,
Alam Smolen
President.
( we hope you enjoy this History of Palm Coast and how the LOTS fit into the big picture ).