The Daily Herald from Arlington Heights, Illinois on March 9, 2008 · Page 82
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The Daily Herald from Arlington Heights, Illinois · Page 82

Arlington Heights, Illinois
Issue Date:
Sunday, March 9, 2008
Page 82
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SUNDAY, MARCH 9, 2008 DAILY IIF.RAI.O SKCTION SA PAGE 3 Summer rental market looking flush for some BY CHULSTINA S.N. LEWIS AND SARA LIN 'Hit Wall Stml [mirneil With no bottom in sight for the U.S. housing market and recession fears growing, one slice of the real-estate industry is holding surprisingly steady: the summer-rental market. Landlords and property managers say choice beach- and lakefront rentals are going fast, with reservations for peak summer weeks up 10 percent or more over last year. Demand is healthiest in expensive resorts like Aspen, Colo., and Malibu, Calif. In Amagansett, on Long Island's East End, rentals are already 50 percent filled, says Rick Hoffman, regional vice president at Corcoran Group. But outside the luxury sector, shadows loom. In many popular coastal areas, the inventory of off-water, mid-priced rentals has swelled despite brisk demand. Newly constructed vacation homes — the end of the decade-long building spree — are on the market and putting pressure on rates. A glut is likely to grow, as more owners who would have flipped homes rely on them longer for rental duty while waiting out the sluggish residential-sales market. Older, smaller properties are being pinched first, as people increasingly vacation with extended families and look for newly built large homes with central air conditioning, hot tubs and other amenities. On the New Jersey Shore, Larry Wilkinson dropped the prime weekly rate on his three-bedroom Ocean City cottage — which has views of the ocean and the Ferris wheel but no central air conditioning — to $2,000, from $2,100 last year. He says this year, he won't set aside early August for his own family's use. "I'm not going to say it's a hardship — it just isn't as lucrative as it was," Wilkinson says. Overall, the number of signed leases in Ocean City is up 14 percent over this time last year, according to Berger Realty, whose properties range from $l,000-a-week units to a $13,500-a-week condo on the beach. In North Carolina's Outer Banks, the average summer rental rate is running at $3,107 a week at Outer Banks Blue Realty Services — a 5 percent increase over last year, says the owner, Tim Cafferty. In Galveston, Texas, where rental demand has soared alongside the Houston oil economy, Sand 'N Sea Properties says it has just one August week left for "Wind Song," a large beachfront home renting for about $5,775 a week — 7 percent more than last year. In the Hamptons, Greg Stuart, an Internet advertising entrepreneur, recently rented out his five-bedroom house in Bridgehampton, N.Y., for $75,000 for all of August — a 15 percent increase over last year. "It's a great deal," Stuart says. "Economically, the smartest thing I've ever done is buy this house." Such resilience is surprising, housing experts say, given low consumer confidence and the economy's loss of jobs last month. It's possible some renters signed early at 2007 rates. And many people may see renting in a "drive-to" market as a bargain compared with a stay at a hotel or vacationing abroad, says Justin Halloran, vice president of U.S. operations for HomeAway, a paid classified Web site. Demand for rentals on Cape Cod, in Massachusetts, is running about 30 percent ahead of last year, but rates are flat. Bett McCarthy, vice president of Kinlin Grover, which manages about 2,000 summer properties, says demand is strongest for properties renting at or above $2,000 a week. While few landlords have raised their rates this year, they aren't cutting, either, she says. "I think people won't start to get nervous until May." Elsewhere, some landlords feel pressure to cut now. Patrick Chamberlain, owner of Villa Rentals, in Newport Beach, Calif., says he noticed customers were tightening budgets. To hold on to repeat clients, he has encouraged owners to shave 5 percent off weekly rates, which range from $1,100 to $7,000 a week. Landlords who don't want a pay cut are adding amenities. Susie Portz, who owns a $7,000-a-week oceanfront home in Newport Beach, says she and her husband did without their usual 4 percent cost-of-living increase this year and bought new living- room furniture, after renters last year made "nit-picky" complaints about the velour- covered furnishings. Of course, it's too soon to say where the market will go, since heavy leasing won't start until March in some places. An oceanfront Southampton home recently fetched $400,000 for August, according to Corcoran's Tim Davis — a rate that fell short of the $500,000 a comparable home fetched last year. A Malibu beachfront house that Paris Hilton leased last summer for $65,000 a month is priced at $80,000 this year, a 23 percent increase. No offers yet, says Coldwell Banker broker Sandro Dazzan. But in markets with lots of new construction, there may be bargains on older properties. "Mad Hatteras" — a four- bedroom shingle-style house in Avon, N.C., with a view of Parnlico Sound — rented for 18 weeks at a peak rate of $1,395 a week in 2003. Since men, the owners have taken a $50-a-week cut on the rate and added wireless Internet, new linens and a videogame player. Even so, the house isn't likely to rent for more man 10 weeks this year, according to Stewart Couch, owner of Hatteras Realty, which manages 550 Outer Banks properties. There are "several hundred houses that are exactly the same," he says. Several athletes leaving Dallas gated community BY CHRISTINA S.N. LEWIS 'lite Wall Stml Journal In a single Dallas-area gated community, four professional athletes have put their houses on the market. Two, former quarterback Drew Bledsoe and the Atlanta Braves' Mark Teixeira, recently left local teams. The houses are in Vaquero, a 525-acre community whose 24-hour, guarded-and-gated entrance appeals to athlete celebrities. Vaquero is in Westlake, northwest of downtown, and has a golf course and a private country club with hotel-style services. Bledsoe — who led the New England Patriots to the 1997 Super Bowl — and his wife, Maura, are asking $2 million for their 5,500-square-foot house, bought new for $1.7 million in 2005. On a third of an acre, it has a guesthouse. The four-time Pro Bowler, age 36, retired last year from the Dallas Cowboys after losing his starting position to Tony Romo. He now lives in Bend, Ore. Teixeira wants $5.75 million for his four-bedroom house on one acre. The first baseman and his wife, Georgia, paid $4 million for the Tuscan-style house about two years ago. They're completing a second-floor addition with a large game room and bathroom that boosts total square footage to 8,500. There's a guesdiouse, pool and porches with automated screens. It sits next to a fishing pond and has golf-course views. Last year, the Texas Rangers traded the 27-year-old Teixeira midsea- son to the Braves. Down the street from Bledsoe's house, hockey's Steve Duchesne, 42, is asking $5 million for his 7,200-square- foot French-chateau-style home, on more than a half acre, in the final stages of construction. It has a wine cellar, five bedrooms and an ultraviolet air-filtering system. The NEW Ranch Homes at the 55 and Better Community That Offers a Carefree Lifestyle! Sales Office Hours Mon-Sat lOam-Spm Sunday 1 lam-5pm former defenseman retired after a 17-year career capped by a Stanley Cup win with the Detroit Red Wings. Duchesne recently began coaching a minor-league hockey team that practices in Frisco, on the opposite end of the city. Finally, golfer Brian Watts is asking $5.45 million for his seven-bedroom-home on 1.7 acres. Coldwell Banker agents Eleanor Mowery Sheets and Gianna Cerullo are handling all four of the listings. Part of Rockefeller's co-op listed: The lowest floor of the late Nelson Rockefeller's New York City triplex went on the market this week for $27.5 million. Rockefeller, vice president under Gerald Ford and four- time New York governor, died in 1979. The 12th-floor co-operative apartment at 810 Fifth Avenue measures 4,000 square feet and has a two-bedroom master suite, 47 feet fronting Central Park and wood paneling dating to Rockefeller's ownership, but requires renovating, according to listing agent Kirk Henckels, of Stribling. In July, former Lazard Freres executive William von Muef- fling paid $25 million for a lOth-floor apartment of equal size and similar condition. In 1962, the governor divorced his first wife, Mary Clark Rockefeller, and divided the triplex. Mary Rockefeller kept the top two floors. That apartment now belongs to Blackstone Group co-founder Peter G. Peterson, who bought it last year from DreamWorks co-founder David Geffen for $37.5 million. Rockefeller and his second wife, Margaretta "Happy" Rockefeller, moved into the triplex's lowest floor and combined it with an apartment on the same floor in an adjacent building. Shortly after Rockefeller's death, Happy Rockefeller moved into the adjacent unit, disconnected the apartments and sold the apartment at 810 to the current owners, an elderly couple, according to Henckels. Market Place, Ltd. To see these homes and all other houses for sale in Lake County, visit ALL BRICK RANCH A mechanic's dream! 4 car heated attached garage located on almost one acre. An English basement, finished recreation room with wet bar, and two huge storage rooms make this a must see. $445,900 BEAUTIFUL COUNTRY WALK This wonderful 2-story home shows like a 10! Full finished basement with great workshop, super kitchen has beautiful oak cabinets, plus lots more! Move in condition...absolutely nothing to do! $224,900 BRAND NEW 2-STORY Ready to move-in! Hardwood floors on main level, 4 bedrooms, 2.5 bath, and professionally landscaped yard. $284,900 SHARP RANCH With new neutral carpeting, fresh paint, and crown moulding. Enjoy summertime entertaining on the large deck, and a deep fenced yard. $179,900 BEAUTIFUL BUILDERS MODEL With all the bells & whistles on over a half acre! Hardwood floors, stone fireplace, granite counters, and a 3 car garage with an attic for extra storage. $363,900 ELEGANT & OUTSTANDING This popular model is distinct in design with dramatic two-story foyer., Pottery Barn kitchen, and fabulous master suite are just a few of the features this home has to offer. $269,000 PRIVACY IN ATOWNHOME! Beautiful townhome without a common wall. Plenty of room with 2.1 baths, 2nd floor laundry room, cathedral ceilings, brick patio and nice backyard. $165,000 PREMIUM END UNIT Soaring 2-story foyer, giant master suite with extra large shower, neutral decor, fireplace, and near park and playground. $219,900 FUN LIFESTYLE! This 3 bedroom ranch has a charming kitchen, full basement, and is located close to the beach and park for outdoor fun. Lots of possibilities! $189,900 VINTAGE CHARM Once in a great while a fine example of a well cared tor home comes along. Fall in love with this well maintained Colonial home with gracious room si/.es and big fenced yard. $419,400 Call for a list of rentals available in Lake County. CENTURY 21 Market Place, Ltd. 700 N. Lake Street • Mundelein (847) 949-7100 O20Qa Century 21 Real Estate Corpoiaiion S anfl '- liattemaik and ieivicemaik ot Century 21 Real Estate Coipwaiion £dth ultite is uiaepcnfltmi, owned ana upeuica tq

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