The Real Deal

By Sharman Egan Lagniappe columnist

I’m jonesin’ to live on the water. Of course, I want to be up on a bluff (or otherwise protected from “tropical occurrences”), fairly close to downtown Mobile. And I don’t want to spend too much more than the $100 a square foot or so we paid for our current home in 2005 (and we know that’s not going to happen). But I’m still hoping….

A year or so ago, it seemed there would be a good many choices (although all were likely to cost much more per square foot than what I’m willing to pay). Waterfront developments planned at that time included three high-rise condo developments: Apalachee, in Daphne overlooking Mobile Bay; Water Street Landing, overlooking the water in downtown Mobile; and The Gateway, on the Causeway across from Ed’s.

A year later, all three projects have apparently been scrapped. The developer of Water Street Landing filed for bankruptcy in July. The Apalachee developers put the project in hold the same month because of soft market conditions. The Gateway fell victim to new height restrictions passed by the Spanish Fort City Council in April. Of course, something will be built on these parcels – the investors have dumped too much money into the dirt to just let them sit there indefinitely. But there’s no telling what will end up on the three sites.

So what do the choices look like now? Three new waterfront developments are on the way including one on each side of the Bay: Saltaire on the Western Shore and The Blakeley at Cypress Point in Spanish Fort on Hwy 225. In between you have Shellbank Landing on the Causeway.

The three projects are about as different as they could be. The Blakely will be a condo tower with 98 units (and another 470 planned in the future). Saltaire will be a complete “town” with about 1,200 homes, mostly single-family, according to Johnny Roberts, CEO of Roberts Brothers, the marketing agency for the development. And Shellbank Landing will be a low-rise condo development with 57 homes.

Holy mackerel, we’re talking over 1,800 new homes. Coming onto a market that is soft across much of the U.S. including Baldwin County, a mortgage industry that is self-destructing before our eyes, and we won’t even talk about the market on the Gulf. With the high cost of construction and waterfront land these days, these homes will be priced at the high end of the market. What are these developers thinking???

To be honest, when I started researching this story, I was thinking OK, I want some of those drugs. But after talking to developers and agents, I’m feeling a lot more positive (yes, I know they’re giving me the sales hype but, jiminy cricket, give me a little credit for seeing through all that; I was a real estate agent once too…).

A number of things make these developments unique, compared to what’s on the market today. First, all three are designed for what the developers refer to as “end-users” – in other words, people who will actually live there versus investors. The developers believe most of the buyers will use the homes as primary residences. And, while the first home market is soft in many areas, it’s a heck of a lot healthier than the second home market.

Second, these homes will be reasonably safe from storms. They will all be built to strict hurricane codes. Saltaire and The Blakeley are also well above sea level (according to the Saltaire Web site, it’s 26 feet up; The Blakely is much higher than that).

Third, there are no sell-out-the-first-day-of-presales expectations here. According to the agents for Saltaire and The Blakely, these are expected to be 7- to 15-plus year projects respectively.

And fourth, well, they’re just unique. Views that will knock your socks off. Amenities that go well beyond the standard pool, tennis and golf (think kayaking, horseback riding, marinas). Saltaire will have almost three miles of waterfront (bay, lake and river) plus shops, restaurants and other retail. And, perhaps most unique of all, in a market where developers often build out every available square inch of dirt, all three developments will include a large proportion of undeveloped land.

Pricing will be key. Roberts says that while pricing hasn’t been established yet for the homes at Saltaire, they will be well below the $1,000 per square foot level seen at the Gulf in the last few years. Pricing at Shellbank Landing and The Blakely start in the low-300s per square foot, not bad for high-end waterfront homes with great amenities.

Sales look pretty good to me, considering there’s little to see at any of these developments so far. Stacy Cranton, listing agent for Shellbank Landing reports 18 homes have been reserved in the five months since sales began. She expects sales to pick up further once construction starts in 30 to 60 days.

According to Cameron Price, general manager of The Blakely, about 20 units have been reserved since on-site sales started three months ago. He expects the first building of 98 units to be sold out by the time construction starts around the middle of next summer. Public pre-sales at Saltaire will start in November, says Roberts.

So if you’re jonesin’ to live on the water like I am, check ‘em out. Saltaire: www.townofsaltaire.com. The Blakely at Cypress Point: www.cypresspointmobiledelta.com. Shellbank Landing: www.shellbanklanding.com. Maybe we’ll be neighbors someday. I’ll bring the lemon poundcake!

Sharman Egan is Lagniappe lagniappe columnist. Contact her at Sharman@SharmanEgan.com.

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