On The Waterfront

Northeast Floridians are fortunate in that regard. From the St. Johns River to the Intracoastal Waterway to the Atlantic Ocean, the region offers more waterfront living options than just about anywhere else.

“Of course, nothing is appreciating like it did,” says Elizabeth Hudgins, a Realtor with Prudential Network Realty’s Ponte Vedra office and a 40-year resident of Jacksonville. “But waterfront property is never going to lose its value. There’s always a demand and there’s a limited supply.”

In Northeast Florida, that adage goes double-or even triple. With the St. Johns River, the Intracoastal and the Atlantic available as options, the question is not whether or not waterfront property is desirable. It’s which kind of waterfront property is right for you.

So much water, so many choices.

The mighty St. Johns flows gently through the heart of downtown Jacksonville enroute to its terminus at Mayport, where it spills into the Atlantic Ocean.

On the eastern edge of the city, roughly two-thirds of the way from downtown to the coast, the Intracoastal passes through on its long journey up the eastern seaboard. And just beyond the Intracoastal lie the region’s notoriously laid-back beach towns.

If you crave spectacular views and the excitement of urban living, chances are you’ll be attracted to the soaring high-rises and the posh infill projects taking shape along the river in and around Jacksonville proper.

If you’re an avid boating or fishing enthusiast, then you’ll no doubt find your bliss along the Intracoastal, where nautically-oriented communities tout backyard boat slips, private marinas and ocean access.

And if you long for a leisurely coastal lifestyle, then you’ll be drawn to laid-back Jacksonville Beach, Atlantic Beach and Neptune Beach, known collectively as The Beaches, as well to Ponte Vedra Beach and St. Augustine in St. Johns County.

To the south and north, respectively, the coastal communities of Palm Coast in Flagler County and Fernandina Beach in Nassau County boast their own unique charms.

Plus, of course, there are still single-site custom homes and infill multifamily projects being built on increasingly rare waterfront parcels flanking the tributaries of the St. Johns, such as Pablo Creek, the Trout River, the Arlington River, the Ortega River and Doctors Lake.

And it’s a great time to buy, says Christine Lee, broker/owner of Lifetime Realty and Mortgage. “There’s more inventory than usual now, and if you make a solid offer, you can buy a beautiful waterfront property,” says Lee.

Lee and other industry insiders believe that worries about declining home values are overblown in Northeast Florida, which has experienced solid—but not outrageous—appreciation over the past several years.

“In Jacksonville, especially, you can certainly expect waterfront property to hold its value and to appreciate over time,” Lee says.

A look at the Jacksonville Multiple Listing Service (MLS) backs her up. The MLS, a master listing of properties for sale in Duval, Clay and St. Johns counties, encompasses more resales then new homes. Still, the numbers tell a story.

No doubt, homes on the water—any water—aren’t selling as quickly as they once did, and inventory has ballooned. Yet, prices continue to rise, albeit at a slower pace.

So, while there are few if any waterfront “steals” on the market, buyers may have a bit of negotiating wiggle room that will instantly vanish when market conditions return to normal.
Here’s an overview:

St. Johns River. In 2006, there were 163 sales of homes, both single-family and multifamily, with direct river access. The average time on the market was 119 days and the average sale price was $1 million. This year, as of July, there were 289 homes listed for sale at an average price of $1.36 million. The average listing had been on the market for 148 days.

Intracoastal Waterway. In 2006, there were 52 sales of homes, both single-family and multifamily, with direct Intracoastal access. The average time on the market was 114 days and the average sale price was $1.2 million. This year, as of July, there were 108 homes listed for sale at an average price of $1.7 million. The average listing had been on the market for 126 days.

Atlantic Ocean. In 2006, there were 24 sales of homes, both single-family and multifamily but primarily condominiums, with direct ocean access. The average time on the market was 154 days and the average sale price was $2.35 million. This year, as of July, there were 80 homes listed for sale at an average price of $2.6 million. The average listing had been on the market for 169 days.

“The river is generally the most affordable of the three options,” notes Dena Calivas, a Realtor with RE/MAX Specialists’ San Jose office.

“The Intracoastal is more expensive in part because it’s closer to the ocean. And oceanfront, of course, is the most expensive of all. But with all waterfront property, the farther away you get from [the urban area] the lower the prices.”

BIG RIVER

The St. Johns River has defined and sustained Northeast Florida for centuries. The 300-mile-long waterway originates in the marshes of Brevard and Indian River counties and flows lazily north, making a sharp eastward turn in Jacksonville and eventually spilling into the Atlantic Ocean at Mayport.

Within Jacksonville, seven bridges connect the Northbank and the Southbank, and new projects are popping up along both sides as well as throughout the river’s numerous estuaries.

“I’d say that 50 percent of the people who live along the river are there primarily because of the views,” says Hudgins, who specializes in waterfront property. “They’re not necessarily interested in boating.”

Anita Vining, a Realtor in Prudential Network Realty’s San Marco office, agrees that riverfront buyers aren’t typically water sports fanatics, although many enjoy leisurely sailing and cruising.

“On the St. Johns, you can take your boat from Jacksonville down to Sanford (north of Orlando),” Vining says. “Some riverfront buyers enjoy doing that. But the views, especially from the downtown high-rises, are just awesome.”

Indeed they are—or soon will be. One of the region’s most talked-about riverfront projects is just getting under way—a spectacular mixed-use development called Shipyards (formerly The Shipyards).

This much-anticipated project, located on languishing Northbank property used during World War II for, not surprisingly, shipbuilding, was plagued at first by fits and starts. But now, with The LandMar Group LLC at the helm, it’s back on track.

The master-planned condominium community, touted as one of the largest waterfront redevelopment projects in the Southeast, is expected to cost about $1 billion through buildout.

Phase One will encompass more than 1,000 residential units and at least 25,000 square feet of commercial space along with a 135-slip marina. Up to 1 million square feet of office space, 250-plus hotel rooms and a second marina are slated for Phase Two.

LandMar officials say there are about 200 reservations in hand for the project’s first residential tower, a dramatic 38-story glass structure. The building will encompass 331 two- and three-bedroom units priced from the $300s to more than $1 million. The ground level will house retail shops and amenities such as a residents’ club, a 14,000-square-foot fitness center, a spa and a sundeck.

Also on the Northbank, Berkman Plaza 2 adjacent to The Plaza Condominiums, has broken ground on a 23-story, 226-unit tower facing the river.

And Orlando-based Kuhn Development has announced plans to build Riverwalk at City Center, a mixed-use development across from The Jacksonville Landing.

On the Southbank, construction is nearing completion on two new residential towers, San Marco Place (condominiums) and The Strand (apartments). The Peninsula, adjacent to The Strand, is also moving ahead and, like its competitors, touts river views as a primary selling point.

Looming above them all, at least in height, will be The St. John, a 51-story condominium tower that will be the tallest all-residential structure in the region and one of the tallest along the eastern seaboard.

But while the big projects may be attracting the lion’s share of ink, smaller, higher-end infill projects are also opening up new opportunities for riverfront living.

For example, there’s The River Homes at Ortega Landing, a niche community along the Ortega River that encompasses just 38 condominiums in three buildings. The three-bedroom, three-bathroom units offer about 2,700 square feet of living space and are priced starting at $1.1 million.

An amenities area features a resort-style swimming pool and a posh clubhouse as well as a 192-slip marina. “This project is unique to the area,” says Nathan Baer, director of marketing for Wisconsin-based MLG Development.

Unique in part because it sits squarely within Jacksonville’s most prestigious old-money neighborhood. That’s why the complex is designed to blend with the gracious homes and manicured parks that are Ortega’s trademark, says Baer.

Another posh but cozy project nestled within an established neighborhood is 1616 River Road, a 13-unit townhome and condominium community that features boat slips along a landscaped riverwalk. Residents will be within easy walking distance of San Marco Square, a charming dining and retail district.

But how about new single-family homes? Obviously, land is scarce for new building in suburban areas outside downtown. But you can still find riverfront lots on which older homes have been razed.

“There’s not much available for single-family building on the river,” notes Calivas. “But we have two riverfront lots left in San Jose. There were homes on the lots, but they’ve been torn down.”
The price for the lots? A cool $2 million each.

MAN-MADE WONDER

The Intracoastal Waterway runs 1,095 miles along the eastern seaboard from Norfolk to Miami. Consisting of a combination of natural and manmade waterways, the waterway was authorized by the U.S. Congress in 1919 to aid commercial navigation.

Today, the Intracoastal is as much a part of Northeast Florida as the St. Johns. In fact, locals affectionately call it “The Ditch,” and the area between the Intracoastal and the Atlantic is known to inlanders as “across The Ditch.”

Yet, despite its rather pedestrian nickname, the Intracoastal is a beautiful stretch of water and Intracoastal real estate is now highly desirable. In part, that’s because the Intracoastal offers an array of recreational opportunities as well as ocean access.

But for years, the Intracoastal was the proverbial oddball uncle in the tight-knit family of Northeast Florida waterways.

Rob Holland, general sales manager of Marsh Landing Realty, remembers when Roscoe Boulevard, which runs alongside the Intracoastal and connects Palm Valley to the south with Ponte Vedra to the north, was flanked by Eisenhower-era cinderblock homes and even a handful of rundown trailers.

“I think the perception of the Intracoastal changed with the advent of upscale developments like Queen’s Harbour and Marsh Landing,” Holland says. “For years, people predicted that Intracoastal property, like the stretch along Roscoe Road, would take off. But buyers weren’t quite adventurous enough to put expensive custom homes on lots next door to older, smaller homes.”

However, Queen’s Harbour Yacht & Country Club in Jacksonville and Marsh Landing Country Club in Ponte Vedra “brought a whole new buyer into the market,” Holland notes. Both communities boast yacht basins and offer homes priced well into seven figures.

“The Intracoastal has really come into its own,” Holland says. “It’s always had its own mystique and people have always been enamored of it. But the ability to have a home where you can keep a yacht has made a huge difference.”

Over the past decade, sparked by the success of Queen’s Harbour and Marsh Landing, older homes on Roscoe Road have been razed and replaced by stunning custom showplaces.
Boating does seem to be a major part of the Intracoastal’s allure.

“You can go from Miami to New York via the Intracoastal,”  Vining says. “Plus, although you can access the ocean, you’re more protected from wind and bad weather than you’d be if you actually lived on the ocean.”

One of the more popular new Intracoastal developments is Centex Homes’ MiraVista at Harbortown, a gated, waterfront condominium community located on Atlantic Boulevard near Queen’s Harbour.

The nautically-themed community encompasses 10 Mediterranean-style buildings as well as a 150-slip marina, a clubhouse, a community swimming pool, a spa and a fitness center.

“The Intracoastal views are beautiful here,” says Nora Jaber, a sales associate and a resident of the community. “There’s more nature here than you’ll see at the ocean. Plus, you can see the sunrise and the sunset on the water.”