Jewell Real Estate Agency Newsletter - Summer 2008

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SUMMER FUN

Summer got off to an early start this year with a mid 90's scorcher from Saturday, June 7 through Tuesday, June 10. It may be a prelude to a long, hot summer.

With gasoline prices topping four dollars a gallon, a busy tourist season is expected here at the Jersey shore. The theory, which seems to be proving correct, is that folks will stay closer to home to offset those exorbitant petroleum prices.

The increase in seasonal visitors guarantees a fun filled, festive summer. So get out your beach chairs, wipe the cobwebs off the barbecue grill, and enjoy the chance to unwind from life's everyday grind.

NORTH WILDWOOD AUCTION

We have gotten so many phone calls about the real estate auction of condos at The Pointe at Moore's Inlet, and heard so many incorrect statements concerning it, that we must present you with the real story.

First of all, the auction was already held, and it was a Saturday in early May at the Borgata in Atlantic City. There is not, repeat not, another auction coming up offering the rest of the units.

The auction drew plenty of prospective bidders by advertising for a couple of months that "bids begin at $175,000". But of the 800 who attended the auction and 600 who had requested the 300-page bid packets, less than 50 actually bid on the 26 condominiums.

It seems that The Pointe at Moore's Inlet advertising didn't live up to the billing. When the 25th unit sold for $346,500, the 26th condo was pulled from the sale. The seller's weren't going to let another go so cheap. That 25th unit was the only one under $400,000. The 24th went for $412,500.

The unique bid format began with the highest bid, which in turn allowed the purchaser to pick the one he wanted from the 26 condos. That high bid was $786,500 for a premium unit originally priced at $1,249,000. The second round bid was $770,000 on a unit originally being sold for $1,049,000.

The total price for the 25 units was $14,459,500, or an average of $578,300. There are 18 units that were held back from the auction, with most being more square footage than those offered at the auction. The 18 are now being offered for sale by conventional means, not by auction.

It's probably safe to say that those 18 units, plus the one pulled from the auction, will fetch another $12 million or more. Another 17 units were sold by the developer before going the auction route. The most expensive went for over $1 million, and four others broke the $800,000 plateau. So let's say conservatively they collectively reaped another $10 million.

Adding the numbers, we're looking at $36 million in total sales, probably a bunch more. While it's not nearly as much as the developer originally hoped to tally, it should keep the project out of the red ink.

As for buyers, they didn't steal the units. But they got a pretty decent deal!

One drawback to the complex is that it is located in the heart of North Wildwood's bar district. That means loud, raucous crowds on summer nights until 3am, when the bars close. Weekends find assorted festivals, with revelers on the streets practically until dawn.

If you're like most of us 50-something or 60-something year olds, that's way past our 10 o'clock bedtime. But if you like to party all night, or want to rent to party-types, this might fit the bill.

WILDWOOD MOVING FORWARD

The New Jersey Department of Environmental Protection (NJDEP) has granted a CAFRA permit for the first of six Wildwood high-rise hotels which have already gained city approvals.

The CAFRA permit, which stands for Coastal Area Facilities Review Act, is necessary for any new project which proposes 24 or more units, 49 or more parking spaces, or is located near water. It normally takes a minimum of two years - sometimes much longer - to satisfy NJDEP that their stringent conditions will be met.

The Starlight Resort Hotel became the first to gain the nod from NJDEP. That project is located between Juniper and Glenwood Avenues on the east side of Ocean Avenue and would offer spectacular views of the ocean, beaches and island. BMF Investments, which is now expected to sell the property to a developer with big bucks and building experience, received approval for a 23-story, 255-foot tall building consisting of 264 residential units (about half sold as condos but all available for hotel rental), a 200-seat restaurant, 654 parking spaces, a spa/swimming pool/fitness club, and some upscale retail shops.

One condition of the CAFRA permit was that the City of Wildwood create a parking authority and BMF contributes $442,000 to that authority. The city is already in the process of creating that authority. The city previously placated NJDEP by implementing a comprehensive municipal plan, which designated which areas of the city's eastside could accommodate high-rise construction.

Many interested observers expected the Nouveau Wave, a 25-story high-rise to be located between Rio Grande and Andrews Avenues at Ocean Avenue, to be the first to receive the coveted CAFRA permit. They were turned down over a year ago and needed to make a few project alterations before gaining approval. Reportedly, they've made a few project alterations by adding more hotel units so their application had to be redrawn prior to being resubmitted.

As the high-rises come on line, which should begin in 2011, the convention center should boom and the island will ascend into the next level of its renaissance.

BEST BEACHES IN NJ

The New Jersey Division of Travel and Tourism conducted an on-line poll this winter and spring and the results are in. With 15,000 responding to the poll, Wildwood was named the best beach in the state. It was also named the best town for tourism and events.

Wildwood Crest grabbed the No.2 spot in the best beach competition, and was tops for best beach for a family vacation. Ocean City followed in third for best beach, with North Wildwood fourth and Cape May fifth.

With seven of the top 10 beaches in the state being located in Cape May County, it's no wonder the county population swells from 96,422 yearround residents to 757,250 on any given day in the summer.

A GOOD IDEA

Corbin City, that small borough located in Atlantic County on Route 50 across the Tuckahoe River from Upper Township, has proposed merging with Upper. The reason - sharing costs to cut property taxes. The 530-person town was part of Upper until 1922, when the Cape May County town incorporated. Upper seems receptive to the idea.

If the merger goes through, it would be the first in New Jersey since 1995, when Pahaquarry, population 6, merged with its Warren County neighbor Hardwick Township.

JEWELL REAL ESTATE AGENCY

We love to talk about real estate and our island. We're always glad to share our insights, observations, and vision with you.

Stop by our office at 5602 New Jersey Avenue and chat. Or give Joyce or Douglas a call at 609-729-8505. We answer phones 6am to 9pm EVERYDAY. That's service!

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