Shores of Panama Selling at Near Auction Prices

Real Estate Market 2 Minutes

In an effort to drop inventory levels, The Shores of Panama Condominiums in Panama City Beach are selling brand new condos at like-auction prices.

Just to save you some time scrolling (since that is inevitably what you will do first to find the price), I’ll just give you the price up front:  $253 per square foot, on average.  Now, let me tell you about why I think this is a great deal.

If you haven’t been to Shores of Panama, you really have to check it out to appreciate it.  Short of going to Edgewater or Boardwalk, it really is one of the few ‘true’ resorts in Panama City Beach.  Featuring resort amenities such as 2 full service spas with massages, facials, steam rooms, and saunas, two tiki bars serving lunch and dinner, conference areas, a 14,000 square foot pool, indoor heated pool, and tons more.

The sense of arrival is spectacular as you pull into the covered grand portacache.  The scene includes elegant fountains and a quaint cafe with the entrance being accessed through oversized solid doors.  The colors are warm and the mood relaxing.

As you walk into the large lobby, you have a view directly onto the lushly landscaped pool area and out into the emerald green Gulf of Mexico.  The lobby is finished off with huge chandeliers and large-tile floors.  The granite counter tops are large and majestic, and the furnishings look and feel expensive.

This expensive look and feel isn’t just skin deep, either.  The entire709  condominium building was constructed using concrete tunnel form, firmly planting the entire structure on the beach.  With an all concrete structure, residents can stay, and own with the peace of mind that their property is safe.

As you walk out into the pool area, you are greeted with palm trees and other native plants to this area.  The 14,000 square foot pool weaves in and out of the various nooks and crannies that give this huge pool character.  Flowing under two bridges, the pool gives the swimmer constant views of the Gulf of Mexico and is serviced by two tiki bars.

The 2 full service spas, separated for men and for women,  provide massages, facials, steam rooms and saunas and are available to guests and residents.  There is a spa located on each side of the U-shaped building. The fitness center features high-end Life Fitness brand cardio equipment, fitted with individual flat panel TV’s.

The large indoor heated pool and hot tub offers residents and guests an opportunity to enjoy a swim regardless of the weather.

With 3 elevator systems, you never have to walk too far to get up to your floor.

Centrally located in Panama City Beach, Pier Park, restaurants, Wal-Mart, and pretty much everything else you’d want while you were on vacation are just a few short minutes away.

Ok, so we’ve established that the Shores of Panama is a true resort, but lets talk numbers.

Recently, beachfront condos have sold for around $200/sq ft at auction.
The price here is $253 per square foot, but you get so much more.  I walked around some of the other condos that have sold at auction, and they simply just don’t compare to the package you get at the Shores of Panama. Others that have recently sold, really are just a building with a pool.

As far as rentals, the pros at Oaseas Resorts have you covered.  Last season, 65% of the guests who visited the property re-booked for next year.  With an Oaseas Resorts office on site, getting in touch with them should be no problem.

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Published by Jason Koertge

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40 thoughts on “Shores of Panama Selling at Near Auction Prices”

  2. With such amenites, what is or will the monthly association dues be? That can sometimes be a deal breaker for some potential buyers.

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  3. You can see the floor plans and HOA dues by clicking my name above.

    The developer does own the pool from what I understand. Guests do have to purchase pool tags when they stay. In addition, the association fees depend on what type of unit you buy.

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  4. The pools, and gym facilities are part of a club membership. Every owner’s club membership fees are included in the association dues. Guests are charged a relatively small fee when they check in to use the club facilities. While Shores of Panama is the only condominium in Panama City Beach to have the club membership, several of the onsite rental companies have been adding similar amenities fees to guests. I believe the idea is to help pay for the cost to run and maintain the amenities and reduce the cost to the owners association.

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  5. As a potential condo buyer, while the Shores of Panama is extremely nice, I have to ask myself is it really worth $53 a foot for the additional amenities? As Randy asked above, long term these amenities will have to be maintained through higher association fees so in fact a condo owner will have to pay for them twice, upfront and then also long term on a monthly basis. To put this into perspective, this means an additional outlay of $74,052 on a two bedroom condo, Shores of Panama versus Ocean Reef. Another comparison would be on a one bedroom comparing Shores of Panama to Sterling Breeze. The one bedroom FURNISHED units sold for around $223 a foot. $30.00 or $28,000 and change difference for a very nicely FURNISHED unit against paying more for an unfurnished one.
    The other factor that should be taken into consideration on amenities is the number of units in the complex. Shores of Panama have a total of 732 versus 145 for Sterling Breeze and 161 in Coral Reef. Naturally the bigger the complex, the more amenities it can support but remember when you spread them out over 732 units, are you really getting that much more than you would in a complex only 20% the size and are they worth all that extra money?
    These are questions a potencial condo buyer will have to ask themselves.

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  6. The difference in dollar per sq. ft. cost is worth the extra expense for what you get. Shores is certainly not the least expensive unit you can buy, but the total package is worth the difference. Oaseas Resort management is on-site, and proving to be the premier rental management company along the coast. Guests are rebooking at a high rate (65%) that tells you the formula works and guests want to come back for more. All good stuff for buyers. It wasn’t that long ago that we hit a ceiling of $625 per sq. ft. and we will get back there eventually.
    Get on the boat that has the most fun and you will be ahead of the game when the market returns! Check out http://www.resortvest.com for complete buyer informaton on this site and others in the future.

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  8. There are actually 709 units in Shores. The facilities are second to none and the guests who have stayed with Shores are booking at a high return rate, speaking to the level of accommodations and services that Shores provides. Oaseas arrived in April and has been working tirelessly ever since; getting the amenities on line and running to meet guests needs and working with the owners and developer to raise the standard of service not only for Shores but for Panama City Beach. Shores of Panama will continue to strive for perfection and continue to be a leader in the market. As a potential owner you have to ask yourself, is it better to invest in a box that is like 75% of the inventory on the beach or sign on with one that has great amenities, fabulous location and the best pool on Panama City Beach?!

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  9. The Club is set up to professionally manage the many amenities, which protects the value and quality of Shores. I think about Shores like a cruise ship – many people doing different things at different times. You don’t have to go anywhere else for food, massage and steam, exercise, pools, beach and beach activities. The guests that have stayed agree. I believe that the long term value of this property will exceed those without the ‘resort’ package.

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  10. 1. Q. Is the pool at Shores owned by the developer or the property owners/condo association?

    A. The pool and other amenities are owned by the Club, which is currently controlled by the Developer. Club memberships are already included within the HOA dues that range from $224 -$365 per month for either a 1, 2, or 3 bedroom floor plan. The benefit of separating the 14,000 sq. ft pool from the shoulders of the owners through the Club is that upkeep will be taken care of by the Club ownership rather than funded through the HOA. This is a much better and cost effective way to go for large resort amenity driven developments. Proof can already be seen in the elevated rebooking rate for Shores, leading to a much better cash flow for those interested in the rental market. In addition, the quality and uniqueness of Shores distinguishes it from the rest of the market.

    2. Q. With such amenites, what is or will the monthly association dues be? That can sometimes be a deal breaker for some potential buyers.

    A. HOA dues that range from $224 -$365 per month for either a 1,2, or 3 bedroom floor plan. This includes Club membership and access to all the resort amenities with the use of a club card.

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  12. Developer filed for bankruptcy months ago. No where in this article does it mention that if you are not an owner you actually have to PAY to use this wonderful pool area they speak of. And attached to this grand entrance is an 8 story parking deck, that’s right, eight! And with over 700 rooms, good luck finding a spot on the beach.

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  13. The developer filed for Reorganization, not Chapter 7. It is disclosed everywhere because the Developer is in the middle of putting together a plan to deal with and to pay vendors. Except for an approval prior to closing, sales and closings are typical, and the ownership title received is VERY clean and without issues.

    In response to JCS, the parking garage is twelve stories and the beach is HUGE and next door to a favorite spot, Pineapple Willy’s.

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  14. Potential buyers should fully read the condo documents in regards to the amenity package prior to making a purchase decision. My understanding is that you pay a fee to use the facilities [you do not own them when you buy] and in 10 or so years the HOA [ie unit owners] get to buy the amenities from the developer at “Market Price”.

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  15. JCS:
    The owners pay a small fee monthly and the guests pay as part of their rental rate.

    The parking garage is not 12 stories not 8 and has ample parking and beach. One of the benefits of having a gigantic gulf front pool (14,000 sq. ft) is that
    there is plenty of room poolside and beach to go around for everyone. What is your beaf with Shores anyway. It seems there is some misinformation about bankruptcy. Please see Jeanne’s comments and visit http://www.resortvest.com for more information

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  17. I’m a little confused. What exactly does the $224 -$365 cover (condo overhead, maintenance, insurance, utilities, etc)? Is there an extra charge on top of this for the owners to use the facilities? What about renting guests?

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  18. Greg,
    The HOA dues ranging by unit size cover all the typical things you would expect to find in a condominium,such as upkeep and maintenance of common elements, building insurance and utlitlities and so forth. According to the condo doc’s, The Club includes all swimming pools (indoor and out), and the two Spa facilities.

    The Club Membership is includied in the HOA fees already posted, and guest fees are included in their rental rates. Those revenues pay for the Club amenities maintenance and upkeep, and keeps the owners from having to fund for any potential storm damage as I undrestand. Hope that helps.

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  19. Some of us find this whole thing rather amusing. We had a contract in late 2004 for one of the units in Phase II. The price was $485,400 or roughly $410 sq.ft. The contract clearly stated that the price may or may not be the final sale price and the final paragraph said the agreement could be cancelled by either party at any time for any reason. So there, full disclosure. The parking space was also extra and required a $1000 deposit to go with the $5000 deposit for the unit. Sure enough, a few months later, a letter was received increasing the price to $480 per ft. And it was made clear that if you didn’t like it you could get your deposit refunded and move on. So we as well as many others evidently did the same. When I picked up the check plus interest the lady made the comment, “I’ve sure handed out a lot of these checks.” $253 per ft and the developer is in reorganization, greed will do it to you every time.

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  23. You are almost correct. The monthy condo fee covers the owners use of the amenities, but not the guest. When an owner rents the unit they have to pay $27 to $35 per day to use the pool and other amenities. This takes a hugh chunk out of the ownners rental income. Yes, they can pass it on to the visitor, but not if they want to stay competative.

    The bankrupt developer owns the entire amenities of the complex under another Inc. name and the development in another Inc. name. This allows him to collect his money for the club while part of the complex remains in bankruptcy.

    You also need to visit the pool during peak season. With only half of the units sold, there is barely room to move! ANd what is going to happen to the beach area when the Wharf (hugh empty complex across the street) finally is occupied.

    Any buyer needs to talk to other owners and Beware!

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  24. Tom, let me see if I’ve got this straight. The owners, through a paid membership, and the guests, through the rental program, or through the owner, pays the developer to maintain the common areas. Is there a way to determine if he is charging actual costs or possibly profiting from this? Also, is the developer paying his share of Association dues and membership dues for the units that he still controls?

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  25. We have a 12 story parking ramp at Shores…..the first 4 are smaller because the atrium cuts out part of them …levels five on up are much larger and there is enough parking to allow 1.5 spaces per unit at full capacity. There is plenty of parking in the ramp. We also have some additional parking just north of the ramp.
    I bought knowing that the 2 foot thick tunnel type concrete construction will withstand a class 5 huricane….peace of mind!!!!!!!!!!!

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  26. Shores of Panama’s developer, Charles Breland, and Vision Bank leave all unsecured creditor’s holding the bag!

    Vision Bank is set to purchase Shores of Panama at auction on March 5, 2009, free and clear of all liens. This means that all the hardworking contractor’s who never got paid, and the purchaser’s who put 20% escrow money down lose everything.

    Funny that Park National, who owns Vision Bank just got 100 million in bailout money! I think the government had a different, “Vision,” in mind!

    I stand to lose my entire $525,000 dollars, and my home because of this. My escrow money was used to build that complex, and Vision Bank shouldn’t be allowed to walk away with my life savings.

    This entire thing is a scam! There are 350 finished units there, ready to sell! But, not to me! Why sell to me if you can just keep my escrow money, and sell to someone else? It’s brilliant, if your a crook!

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  28. What Ron said (above) about the developer going up on the price from $410 sq ft. to $480 sq ft. is exactly right! But, after I read the actual sales contract, I decided to go ahead with my purchase, even at the higher price.

    I signed a purchase agreement in Nov. ’04, that said if the units were not complete within 2 years, I was entitled refund of my deposit money.

    In Nov.’06, the units were no where near complete, so I requested a refund. The developer refused. Over a year later, when the complex was complete, he still expected us to pay $438/sq ft, if we wanted to close. He refused to come down to the current appraised value, and that made it nearly impossible to get a loan.

    As soon as some of the purchaser’s received a judgment ordering him to return their money, he filed bankruptcy. He never paid any of us, and he refused to come down on his price, so that we might could close.

    Now, the bank gets the property back for the 66 million it’s owed, free and clear of all other liens. If they can sell the units for $170/sq ft, they’ll not only get their 66 million back, they’ll make 20 million!

    When I contacted Vision Bank the other day to ask them if it was their intention to leave us with nothing, they informed me that they had transferred their interest to Silverton Bank, out of Atlanta. How convenient! They don’t want the bad publicity that’s sure to come if they leave all the creditor’s holding the bag.

    My hope is still that the bank will do the right thing. They could give us credit for our escrow money, and allow us to purchase a unit at a reasonable price. But, that’s just a hope. The judge already ruled that they only have to pay the unsecured creditor’s $1 million of the $20 million claimed.

    We’ll see next month. There is an auction on March 5, 2009 in Panama City, and the following day, on March 6, a hearing in bankruptcy court in Tallahassee, to confirm the sale. Hopefully, some miracle will come through…I’ll keep you posted.

    Jenn

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  29. Shores of Panama is going up for auction. On March 5, 2009, the remaining 370 units, as a whole will be up for bid. The minimum bid is $80 million. Go to:
    http://is.northmarq.com/Current-Listings.aspx for all the information.

    Not mentioned is the fact that the, “Club,” property, which consists of the pools, and various other amenities, is included. This propety alone generated $325,000 last year because it is rented to the unit owners for $60 per month,and to renters for $25 per day. Imagine how much income will be generated off this property once all 370 other units are sold? Where is Mr. Trump??

    I think this auction is supposed to be kept quite…mainly because Vision Bank or Silverton Bank(whichever one it REALLY is) wants to buy it back themselves for $66 million, and make a hefty profit.

    Just a question, do you think these units could sell individually for $190 per sq ft? I’m just curious. The lawyer for Silverton Bank told me the other day that she doesn’t think they’ll bring that much. Please respond, I’d relly appreciate your opinions.

    Thanks,

    Jenn

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  30. There is an item on the http://WWW.Tripsmarter.com PCB forums about the court ordered auction for the second phase and other areas. $100K certified just to bid. Would like to know about the spare lots (2.5 acres) and beach club(1.4 acres). Could the beach club be the pool and tanning decks?

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  31. What Jenn above is saying is 100% true!! I have a good friend in the same situation. Although I do not know in depth all the details, it seems to me that the bank and the owner are getting away with robbery. In my personal opinion after knowing the truth I don’t care how nice this place is, I wouldn’t give them a dime of my money!!!

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  33. Silverton Bank purchased all property at Shores of Panama for $68.7 million, or, less than $160 per sq foot, not including all the commercial space, pools, etc. Here’s the math:
    370 units averaging 1189 sq ft each= 439,930 total sq ft. x $160 per sq ft = $70,388,800.00.

    If Silverton can sell the units for approximately $200 per sq foot, they will get all their original pricipal, interest, and attorney’s fees back, and an additional $19 million to boot! Any profit made off the deal will now go to them, not the unsecured creditors. The judge approved the sale, free and clear of all liens. So, they lose nothing, we lose everything, and they get the bailout money on top of that!

    Everyone loses here, except for the bank. Unless, you believe that the economy is so bad, the units won’t acturally bring $160 per sq foot. That was Silverton’s story at the hearing.

    Well, we just have to wait and see what they put the units on the market for, and if they intend to work with the unsecured creditors in any way. I’ll keep you informed.

    Jenn

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  34. Silverton Bank, who just purchased all 370 units at Shores of Panama for just less than $160 per sq foot, and left all the creditors with next to nothing, is now selling the units for $225 per sq foot.

    I do find the whole thing unbelievable. I’ve talked to so many people who are losing so much of their life savings on this deal, it really is sad. This didn’t have to be. There was plenty of equity in the property, but Silverton Bank wanted to keep it for themselves.

    Anyone thinking of purchasing at Shores better check out Silverton though. According to the Atlanta Journal, they were issued a consent order by the OCC. The article states that it is the strongest thing the OCC can do, other than seizure, liquidation, or forcing a sale of the bank.

    As of April 13th, the FDIC got involved also, barring Silverton from other actions as well, such as paying dividends, or incurring debt, without their consent.

    I’m a pre-construction purchaser, who really would like to own a unit at Shores, but I feel that the fate of those units is still up in the air, and I’d rather wait and see if the prices come down even further if Silverton fails.

    Jenn

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  35. We recently toured the facility. We are novices to the purchase of a condo. We visited the facility on April 18th. At the time we were offered a Efficiency for 106K. I was wondering if that was a reasonable price for the market at this time. They also stated that several banks would be willing to work out loans for us. They stated that they were waiting for a State of Florida review before they could really sell the units. Does someone know what this means?
    Our intention is to buy a unit for vacation and “retirement”.
    I think the units sq ft was 470. Thanks for any input on this

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  36. The state of Florida review was more than likely the bankruptcy sale. It has since taken place, and they are selling the units now.

    That isn’t a bad price, the only thing I would worry about now is the fact that 370 of the units are owned by Silverton Bank and Silverton Bank is having some real issues. The Office of the Comptroller of the Currency issued them a consent order recently, and then the Federal Reserve censured them.

    If Silverton Bank was to to fail, it’s possible that the units could be sold at auction, which could lower their value.

    Also, be aware of the amenities fee. The pools, restaurant, spas, fitness areas, etc, are not owed by the association, (although they are in talks with Silverton to purchase these)but are leased by the unit owners. The fees aren’t bad, if you don’t rent your unit out, but if you do, your renters have to pay around $25 per day.

    Jenn

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  38. It’s true. As of Friday, April 30, 2009, Silverton Bank was closed by the OCC. Now, the fate of the remaining units at Shores of Panama is definitely in question. It will be up to the Federal Reserve whether or not to liquidate all Silverton’s assets.

    Any pre-construction purchasers who lost their entire deposit money should try to contact the Federal Reserve about possibly purchasing a unit from them. I don’t know if it will do any good, but it’s worth a try!

    Jenn

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  39. Thank you for being so informative on the tragic oil spill. I hate that our country is going through this and the president is not going to make BP mad because of them being a major funder when he was running for president.
    My husband and I wanted to take a trip down to our personal favorite beach before he left for Afghanistan. We kept our eye on your website the entire time. Unfortunately we have the luck if there is only 1tar ball out there it would find us. It did find my husband at Shell Island.
    We are also looking to relocate down in the near future of course after his tour in Afghanistan. He is Special Forces reserve and his civilian job is High School Teacher and Football/Golf Coach and my job is HR/Recruiter. Are there any contacts you could email to me? I look forward to hearing from you soon.
    Amanda Tittle
    amandatittlestaffing@yahoo.com

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