Lawyers sued Boca West Country Club and three of the club’s leaders in a $500 million federal class action lawsuit last week on behalf of Frank Calmes who owns a unit in the Hammocks at Boca West condominiums. The class action indicates it represents over 3000 people who purchased property at Boca West Country Club.
One critical element of the claim appears to be alleged mismanagement of the new Akoya development going on within the club. The lawsuit says that the defendants mishandled that agreement by not insisting on a “time is of the essence” clause, that this delayed the project by five years, and that the lost revenue caused shortfalls leading to large increases in membership costs, which then made the properties harder to sell and reduced property values by $500 million. Property value depreciation is an inevitability (this article by property valuers details the ways it can occur and how to mitigate it) but this sheer level of depreciation is alleged to have been avoidable if the clause had been included in the project.
There are condos for sale now in Boca West for as little as $500, with 13 currently active for $10,000 or less.
The lawsuit includes other grievances charges for locker rentals with no refunds after the lockers were demolished.
We see some odd details in the lawsuit. There’s a concept in federal lawsuits called “diversity jurisdiction” and, as we read it, it fails to properly allege diversity (it doesn’t indicate any parties are out of state). That should be minor as it is likely there are property owners in Boca West who are residents of other states.
Also the claim about Akoya seems odd. If they had never reached a deal on Akoya the club still would have not received the revenue from the project. That “lost” revenue amounts to only $17 million. For both reasons we don’t see how that connects to $500 million in reduced property value.
There’s more to the story and we will likely write a follow-up in the next few days, and/or update this article. We reached out to the local attorney who filed the lawsuit, Ron Kaniuk, but he declined comment. Kaniuk is working on the case with an attorney from New York. We also reached out to defendant Larry Corman, who is an attorney, but we haven’t heard back yet.
The full complaint filed in federal court is below:
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Category: Real Estate
Only 3 Home Sales So Far in The Shores for 2017
We see only three transactions in The Shores for early 2017, ranging from $462K up to $648K. All three sold quickly, with the longest taking 39 days. The Shores at Boca Raton is on the far west end of Yamato Road, across from the north entrance to South County Regional Park.
At the high end, 11229 Sea Grass Circle sold for $648,000. The house has 5 bedrooms and 3 1/2 baths in nearly 3400 square feet under air. It’s on a large lot and a little waterfront though not the best angle for the lake and there’s no pool. There are many upgrades including impact windows. The kitchen is a bit odd, with a large island and little other counter space.
Priced in the middle at $550K was 18584 Harbor Light Way, with 4 bed and 2 1/2 baths in 2800 square feet all on one floor. The house has a mid-lake view and a screened-in pool. There are a number of upgrades in the kitchen and elsewhere, but they may not be to everyone’s taste.
Last and probably least, 11357 Sea Grass Circle sold for much less at only $462,500, with 5 bedrooms and 3 1/2 baths in 3000 square feet. The house has good bones and a fairly good location – no waterfront but the back faces park land that will not be developed for a long time if ever. Inside it’s clean but dated and many buyers would do extensive remodeling.
Thinking of buying or selling a house in West Boca?
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Or just call Warren at 888-733-5299 (e-mail [email protected]).
Boca Isles South: $420K to $659K for Early 2017
Over 10 home sales have closed in Boca Isles South since the start of the year. Prices range from $659K at the high end for a 3300 square foot 5 bedroom, down to $420K for a 3 bedroom with 2000 square feet.
Four homes with over 3200 square feet are on the list, all four of them in less than a month.
20148 Ocean Key Drive sold for $659K. The house has 5 bedrooms and 4 baths in 3300 square feet, with a variety of new upgrades and features including a pool, though it has no waterfront.
Nearby 20016 Ocean Key Drive sold for $625K with 5 beds, 3 baths in 3200 square feet, with waterfront, a pool and a recent remodel.
Also at $625K, 19717 Brickel Point Drive has roughly the same size and features, again including a recent remodel.
The same model sold for nearly $100K less – $527K – at 20029 Palm Island Drive. It also has waterfront with southern exposure for the pool. We don’t know why it sold for so little but the listing included not a single photo of the interior, so we have a hunch it needed a lot of work inside.
The remaining homes were all smaller than 3000 square feet. The 2900 square foot home at 10588 Saint Thomas Drive still sold for nearly $510K with 4 beds, 3 baths and a pool but no waterfront. There are a lot of interior upgrades so it looks like this buyer got a relative bargain.
20106 Ocean Key Drive sold for $482,500 with 5 bedrooms and 3 baths in 2800 square feet on one floor. This one sat on the market for nearly a year before selling. The interior did seem dated but this one looks like another case where the buyer got a deal.
Also selling for $482.5K was 19748 Dinner Key Drive, the same model as the $510K home mentioned above, but with no pool. The home was listed by a Realtor from another county and the listing photos were poorly done.
A couple of large homes went even cheaper. 10861 Bal Harbor Drive sold for $458K with 4 bedrooms and 3 baths in 2750 square feet on one floor. It’s on a good lot with a lake view in the backyard. The interior was clean but out of date.
Possibly an even better bargain was found at 10581 Saint Thomas Drive, which sold for just $455K with 4 bedrooms, 3 baths and over 2900 square feet (same model as a couple others above). The house has waterfront and a recent kitchen renovation.
The smaller models in Boca Isles ranged from $465K at the high end down to $420K for the smallest model.
19634 Biscayne Bay Drive sold for $465K with 4 bedrooms and 2 baths in 2300 square feet with a pretty good lake view from the backyard pool area. The house was in good shape but the kitchen appliances looked dated. We heard that the new owner redid some floors.
The same model sold significantly cheaper at 19555 Dinner Key Drive at $443K a month later. This was a bank-owned home and they often sell for less.
Going still smaller, 10576 Saint Thomas Drive sold for $450K with 3 bedrooms and 2 baths in 2100 square feet. The house has substantial upgrades inside, though it has no pool and no waterfront.
The smallest and cheapest in this report, 19537 Dinner Key Drive sold for $420K with 3 bedrooms and 3 baths in 2000 square feet and significant upgrades. It’s an odd layout with the pool on the side facing the house next door, and a lake view out the back windows of the house.
Say No to Johns Glades West – aka Uptown Boca
Update – The new developer is calling it Uptown Boca.
We took a hard look at the Johns Glades West proposal and we’re opposed. The Palm Beach County Commission approved this on April 26th. It might be too late to do anything about it, but we suggest you contact Commissioner Mary Lou Berger.
You can call her at 561-355-2205, or e-mail her at [email protected].
Developers plan to build a very dense project on the south side of Glades Road. The front on Glades would be a fairly large commercial plaza including a grocery store, a theater, restaurants and more.
Here’s the developer’s depiction of what it will look like:
The back part of the project is more disturbing and completely out of character for West Boca. It would include seven five-story buildings with over 450 apartments.
County zoning staff wrongly concluded this fits in with the existing development around it.
“Staff Analysis: The proposed amendment is consistent with the character and development pattern of the surrounding communities, which can be characterized as a built development pattern with higher density and higher intensity.”
This is ridiculous. Yes it’s true that the nearby commercial plazas are similar to the commercial part of the proposal. But neither Westwinds nor Shadowood have housing at all, much less 5-story towers packed with 10 apartments per floor.
Nothing around it would be nearly this dense. Look at this image:
The residential neighborhoods to the north, east, and southwest are far less dense with much more greenery. Same with the Jewish Federation campus to the south. Residents of Palma Vista, to the southwest, have legitimately complained about the R2 building (lower left) which will tower over the homes in the northeast end of their neighborhood.
The developer is seeking 12 residential units per acre for the whole 38 acres of the site, but that the county is ignoring the fact that half of those acres would be used for commercial space. So they’re really getting 24 residential units per acre.
There’s no space for trees, grass, etc., allotting less than two acres for a lake. All those hard surfaces with no green space means big stormwater runoff problems.
The apartment complex will consist of over 450 tiny apartments (we estimate an average size of 800 square feet) with minimal amenities. There isn’t even a pool in the plan.
Reading through the details of the submission (see pdf below) we see numerous agencies referencing their ability to handle the project at 300 residential units, with some saying that density would be a problem and others indicating issues. But the proposal is 450+ units, not just 300.
Johns Glades WestPDF Johns Glades West – Uptown Boca
For one thing, with 300 units it still fails the long range traffic test.
In other words it will create long term traffic problems on Glades Road, Lyons Road, and US-441.
According to the school district it will overcrowd Eagles Landing Middle School, and add a significant burden to both Olympic Heights and Sandpiper Shores. We all know how great the traffic is at Sandpiper Shores already.
Did you realize what the county was allowing to happen? Do you feel that Mary Lou Berger, your representative, communicated sufficiently with you about this?
Before writing this article we reached out to Ms. Berger and Ms. Scarborough. They did not respond.
How do you like them olives? Home Sales in Boca Isles North
There are two Boca Isles neighborhoods, west of Cain Blvd and south of Yamato Rd. Boca Isles North and Boca Isles South are gated communities with bike and jogging paths and they’re popular with families. In this report we focus on Boca Isles North, which saw a few sales on Black Olive since the beginning of the year, along with some others. There were no short sales or bank owned homes in this report.
The two story home at 19386 Black Olive Lane sold for $555,000. There are 5 bedrooms and 3 full bathrooms in 2676 sq. feet of living space. This completely renovated home has lots of new additions. The kitchen has quartz counter tops, a marble back splash, wood cabinetry and stainless steel appliances. The two islands open up to the living room. A remodeled bathroom is on the first floor. A brand new roof was installed in 2016. The fenced in yard includes an in ground pool. Built in 1993, it was recently purchased in 2016 for $390,000.
19457 Black Olive Lane sold for $485,000. The home has 4 bedrooms and 3 full bathrooms in 2660 sq. feet of living space. This Mediterranean style home has great views of the lake and a custom free form pool with a paver deck, built in grill and custom landscaping. The kitchen has been updated and includes tile counters and back splash. The master bathroom was also remodeled. A balcony off the master bedroom overlooks the lake. It was purchased for $521,000 in 2007. It was built in 1993 for $209,000.
The ranch home at 19722 Black Olive Lane sold for $435,000. It has 3 bedrooms and 2 full bathrooms in 2118 sq. feet of living space. The pool home has a screened in deck and the pool has a new diamond brite surface. The kitchen has granite counter tops, stainless steel appliances and cherry wood cabinets. Both bathrooms have been remodeled. A unique feature is the outdoor shower. It was sold for $312,100 in 2014 and $435,000 in 2015. The home was built in 1994.
19250 Redberry Court sold for $615,000. It has 4 bedrooms and 3 full bathrooms in 2660 sq. feet of living space. Located on a lakefront lot, it has an open and spacious floor plan. The new custom kitchen has stainless steel appliances, granite counter tops and huge island. There are crema marfil marble floors throughout. The master bathroom has double vanities and separate shower and tub. The additional bathrooms were renovated. The driveway and pool deck feature travertine marble. The salt water pool and spa was recently remodeled. Built in 1994, it was previously sold for $430,000 in 2012. It looks like the seller’s patience was rewarded, as the house took eight months to sell but they found a buyer who appreciated the value. The backyard is simply gorgeous.
Other sales include:
19681 Black Olive Lane sold for $567,500. The house has 4 bedrooms and 3 baths in 2800 square feet, along with a private pool and waterfront location.
10689 Maple Chase Drive sold for $515K, with 4 bedrooms and 3 baths in 2700 square feet, waterfront but no pool.
And 19456 Preserve Drive sold for $472,500. It also has 4 beds, 3 baths and 2700 square feet. We suspect this house could have gone for more if it had better photos.