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TALLAHASEE, Fla. – June 18, 2010 – Florida’s efforts to renourish eroded beaches does not violate the rights of nearby property owners, the U.S. Supreme Court ruled Thursday in a case brought by Walton County landowners following 1995’s Hurricane Opal.

In a 15-page ruling, the nation’s highest court agreed with the state that beachfront owners are not severely harmed when renourishment efforts extend the distance their properties lie from the shoreline by, in essence, expanding the shoreline seaward.

The case stems from recovery efforts following Hurricane Opal, when Destin and Walton County began a process of pumping sand onto beaches, establishing a boundary line between public and private land to control future erosion.

Stop the Beach Renourishment, a not-for-profit group of six landowners, argued before the Supreme Court that these augmented beaches deprived them of direct beachfront access and should be considered a taking of their land. The First District Court of Appeal (DCA) agreed.

But the nation’s high court upheld the 2008 state Supreme Court opinion that overturned the earlier DCA decision. The state has a “constitutional duty to protect Florida’s beaches,” according to the Florida Supreme Court, and was within its rights by moving forward with renourishment.

Landowners’ rights were not violated, the U.S. Supreme Court ruled, even if the extra sand increased the distance between the landowners’ property lines and the water.

“Regardless of whether an … event exposes land previously submerged or submerges land previously exposed, the boundary between (private) property and sovereign land does not change,” Justice Antonin Scalia wrote for the majority. “It remains (ordinarily) what was the mean high-water line before the event.”

Attorneys for the landowners said Thursday they we disappointed in the ruling, saying it further diminishes private property protections guaranteed in the U.S. Constitution.

“Private property rights are a legacy forged in the American Revolution by our Founding Fathers and passed on to us through the generations,” attorneys Kent Safriet and Richard Brightman of Hopping, Green & Sams wrote in a joint statement following the high court ruling. “They are a cornerstone of our society’s prosperity and freedom. Today’s ruling weakens those rights to the detriment of private property owners everywhere.”

Source: News Service of Florida, Michael Peltier

Foreign buyers are flocking to Florida condos again
TORONTO – June 1, 2010 – Nearly 800 Canadians jammed a hotel ballroom near the Toronto airport Sunday to hear the gospel of Florida real estate.

High-end Brazilian buyers prefer to be wooed more intimately – perhaps at a cocktail party or a small private dinner – but they are just as pumped.

Lured by rock-bottom prices, international buyers are now flocking to buy Florida properties. It’s especially true in countries where the currency is strong against the dollar.

“We’re telling Canadians this is a once-in-a-lifetime opportunity – the perfect storm,” said Brian Ellis, who heads Toronto-based Florida Home Finders of Canada. “The prices are just incredible and the Canadian dollar has been so strong.”

At least three of five buyers in the Greater Downtown Miami condo market are coming from abroad, estimates Jenny Huertas, international sales director for Condo Vultures, a real estate advisory and research firm.

The stampede from overseas is “kind of like a foreign subsidy helping us resolve our real estate problems,” said Peter Zalewski, a Condo Vultures principal. “This time the assistance isn’t coming from Washington. It’s coming from Caracas, London, Milan, Bogota.”

The buying frenzy was set off by developers lowering prices on new units to below what it costs to build in today’s market, Huertas said.

“There were many people on the sidelines watching for the floor. In the last three or four months there’s the perception that we’re there,” said developer Edgardo Defortuna, president and chief executive of Fortune International.

Cash customers

Most of the foreigners are cash buyers like Leroy Jean Francois, who has snapped up 47 properties since January for the two real estate firms he works for in France and Switzerland. The plan, he said, is to buy, fix up if necessary, rent out for the next five years, then sell – for a profit.

The Frenchman has already made a paper profit on a unit he closed on in January at Marquis Residences, a 67-story luxury tower in downtown Miami where prices for a one-bedroom apartment start at $375,000. His unit cost $317 per square foot – “a great price, incredible,” he said.

A recent plunge in the euro – it’s now worth $1.23, down from its high of more than $1.60 in 2008 – could cool things off a little. To buy a $1 million condo, it now takes around 814,000 euros compared to 625,000 euros under the old exchange rate.

Meantime, prices at Marquis Residences also have strengthened to around $400 per square foot.

But even the declining euro has barely given Francois pause.

“I think the euro will weaken more. But even if the exchange rate is $1 to 1 euro, South Florida real estate is still a great bargain for us,” said Francois, who is president of The Bridge, a real estate fund consultancy.

Average Joes

Luxury condos are once again popular among Latin America buyers who purchase them as investments but also as a home base. While their children attend school here, they attend to business interests or escape strife at home.

But for his Canadian buyers, Ellis scours South Florida for condo units at around the $150,000 price point. “We’re basically the Wal-Mart. We’re for the average Joe.”

And these days average Joe Canadian can afford much more. For decades the U.S. dollar was worth more than the Canadian dollar and buying in the U.S. was always more expensive for Canadians. But in September 2007, the Canadian dollar reached parity with the greenback for the first time in 31 years. It fell back again, but now the Canadian loonie, which takes its name from the loon pictured on the one-dollar coin, is near parity at around 95 cents.

So Ellis has been offering his Florida real estate seminars to packed houses in Ontario and is thinking about taking the show on the road to Montreal. There was so much interest in the latest seminar that he had to schedule two sessions for 400 people each this Sunday.

Most of his Canadian buyers are what Ellis calls “end-vestors,” meaning they plan on renting a unit out for now with an eye toward using it themselves down the road.

Since Home Finders is licensed as a brokerage only in Canada, it works with Florida brokers who complete the sales and pay the Canadian firm referral fees. By year’s end, Ellis said he expects to have facilitated 500 Florida closings.