Condo discount aimed at middle-income housing problem

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Condo discount aimed at middle-income housing problem

By Quentin Roux

Wednesday, January 18, 2006 | test

With affordable and gap housing making headlines almost daily, one local developer used her ingenuity to create a solution that makes business sense and addresses at least part of the problem.

The developers of South Bay Plantation, a 30-building, 240-unit neighborhood converted last year from rental apartments to condos, hope others will follow their example.

South Bay is offering discount incentives that top a recent monthlong program to woo buyers. The offer has attracted hundreds of inquiries.

In the program just ended, South Bay Plantation, situated on Manatee Road about 10 miles from Marco Island, offered purchasers a string of discounts on its units selling from $169,000 to just under $300,000.

Cynthia Miller, NewStar Realty marketing director and originator of the offer, said they included:

. a discount of just under 5 percent on unit costs;

. reduction of deposits from $2,100 to $1,000;

. payment of various closing costs, provided buyers used an in-house agent; and

. kitchen appliance upgrades.

Miller said Jan. 9 that the offer produced about 500 inquiries, resulting in 24 sales and pending contracts.

On Jan. 11, Miller said the incentives will be reintroduced, but with a more attractive discount that could reach $25,000 for the higher-end units in the complex.

It is scheduled to run through February, she said, but may be extended.

Miller devised the plan after the need for affordable and gap housing escalated in Collier County, coming to a head in 2005 with county Commissioner Donna Fiala declaring the problem crucial.

Miller spoke with Fiala at a forum, noted her "passionate" concern for the problem and followed the meeting by putting together her plan.

The units at South Bay Plantation, Miller said, satisfy gap housing as opposed to affordable housing because prices are aimed at middle-income earners such as county, city and health-care workers.

The most positive reaction, she said, came from Brian Settle, vice president of human resources for NCH Healthcare System and a volunteer with the Collier County Affordable Housing Development Corp.

"Cynthia and I talked about it," Settle said Jan. 10. "I said I applauded her efforts in offering condos to individual buyers rather than mass-marketing them to investors."

He said the housing issue is as critical for the health-care industry as for any other in the area.

"It's because we need to draw specialty people out of the area into the medical field here," Settle said.

He said he is pleased that county commissioners seem to be "more in tune" with the issue now than they were a year ago.

Media coverage also has contributed to highlighting the problem, he said.

Ironically, the original conversion of South Bay apartments into for-sale condominiums last year had renters scrambling for alternative accommodations.

However, they were given the option of buying, as well as conditional extended rentals of 180 days and 270 days beyond their lease expiration dates.

South Bay had become one of the traditional "dormitories" for Marco Island workers, particularly hotel and service workers unable to afford to live on Marco.

An affected hotelier, Mac Chaudhry, general manager of the Hilton Marco Island Beach Resort, said at the time that he didn't take issue with South Bay Plantation's owner, South Bay Plantation Associates LLC.

"It's their call," he said. "Business is business."

South Bay Plantation is styled after Key West, with amenities that include a clubhouse, pool, tennis courts, gym and boat storage.

Units range from 775 to 1,108 square feet, and include screened patios and walk-in closets.

Call Miller or Denise Rojas at (954) 922-0855 for more information.

� 2006 Naples Daily News and NDN Productions. Published in Naples, Florida, USA by the E.W. Scripps Co.