Prudential’s Pierce Sees Great Investment Opportunities with the Right Buys

Though stories on "flipping properties" may be more exciting to talk about, Prudential Network Realty/Atlantic Beach Realtor Phil Pierce says most good real estate investors should use the same tactic when buying properties as they do with stocks and other financial tools.

"Most who are successful at real estate investing should really approach it to achieve long-term gains," Pierce said. "By making the right choices, they’ll find that real estate can outperform stocks and bonds – and they can keep an eye on their investment, since it’s in their own backyard."

Pierce is in the top two percent of Prudential brokers nationwide. – selling more than $25 million in oceanfront residential properties and condominium units over the last year.

"Preconstruction sales are still a good investment," said Pierce, referring to condos and other properties that are either in the planning or early stages of construction. "Nearly any properties on the water, especially that have boat slips, are a wise choice, too."

Along with those parameters, Pierce also suggests evaluating the drive-time from the property to downtown and the airport.

"Properties in Fernandina and Amelia Island are about the same drive-time from the airport as properties in the Jacksonville beaches," he said.

Pierce is especially bullish on downtown properties.

"There are some great opportunities that will soon be available at the Shipyards area on the north bank, along with several south bank developments like the Peninsula and the Vu," he said.

When buying downtown, Pierce suggests condo units that are one-to-two bedrooms in size.

"Most of these are going to be in demand from professionals for corporate uses," he said. "As a general rule, families of two or more don’t really gravitate to inner-city living. That means that if you’re purchasing a downtown condo for an investment, it will be much easier to sell when the time comes. Three-bedroom condos are a better investment at the beaches, since they offer the flexibility to accommodate guests and family when they come to visit."

Pierce specializes in country club properties, oceanfront estates, investments and pre-construction properties. Knowing what is available in the residential market, and his ability to communicate that information to potential buyers, is proving one of Pierce’s strongest assets on both sides of the sales equation.

"I really learn the set of circumstances for each of my customers to find the right fit for them," Pierce said. "At the same time, working with so many property owners and condo developers puts me in a unique position to make deals on properties that benefit the builders and property owners as well."

"I’m really impressed with how informed Phil’s customers are when they walk in the door," said Kerry Fullford, a sales consultant for the Prudential Network Realty Builder Services Division who represents Oceanside 932, a 10-story condominium tower recently completed on First Street in Jacksonville Beach.

"His advance work with customers really made my job a lot easier," she said. "They already know about comparable properties and all the statistics in the area before they even arrive, and that allowed me to focus on the answering questions about the property itself."

Prices ranged from $800,000 to $1.8 million for the 25 units at Oceanside 932, which opened last November. Pierce sold four units over the last year.

Pierce says that pre-construction properties offer a unique challenge for any realtor – and in many cases offers benefits for the buyer.

"On my side, I have to help the customer visualize what the property will look like and the benefits for buying a property while it’s being built, which is certainly more difficult than showing a property that’s already completed," Pierce said. "At the same time, buyers can save anywhere from 10 to 20 percent on the total unit price compared to when the development is completed, which can represent a sizable savings for them."

And for buyers who plan to use the property for their primary residence, a purchase during the pre-construction phase gives them time to sell their current residence and make whatever preparations necessary for their move, he said.

"In many cases, buying condos and homes still under construction makes sense financially and customers can use it to their advantage based on their individual situation," Pierce said.

Pierce also sold several properties at The Peninsula, a 234-unit condominium located on the southbank in Jacksonville.

Greg Esterman, vice president of sales and development for the property, said Pierce is very good at creating an image of what urban living will be like at The Peninsula when it opens in 2007.

"For most people, housing is one of their biggest single investments, and when the property is two years away from opening it makes it a very uncertain decision for some," Esterman said. "Phil has an appreciation for urban living, and is very good at creating a very accurate and exciting image of living downtown for buyers."

Pierce prides himself on understanding as much as possible about his customers so he can connect them with the right property, and that also means having a broad knowledge of availability.

"I’ve been impressed with Phil’s professionalism and his handle on the market," said Michelle Mousin, a community sales manager with Marina San Pablo – a two-tower condominium being built near San Pablo Road and Butler Boulevard in Jacksonville Beach.

"He takes into account each investor’s or customer's unique circumstances and goals and places them with the correct property," Mousin said. "That skill has been a key part of his success."

Over the last year, Pierce sold five condominium units at Marina San Pablo, ranging in price from about $600,000 to $1.5 million.

Pierce, a Jacksonville Beach resident who spent more than 20 years in sales and marketing before changing careers and entering the real estate industry, said he treats his job as a profession rather than a hobby, unlike some who get their broker’s license.

"The bottom line is applying the time necessary to know the market as well as possible," he said. "That puts me in the position to negotiate harder with developers to get my customers the best deal possible when they are ready to make a purchase," he said. "Also, knowing the developers and property owners puts me in a better position to get a good deal compared to someone who walks in the front door who knows nothing about their properties."

Pierce also contributes much of his early achievement to Prudential Network Realty's training program.

"Within weeks of starting in the program, I started seeing results," he said. "The leadership at Prudential has one of the nation’s top notch programs and they spare no expense in training their agents. Both in the beginning, and through recurring training, you can always stay abreast of the ever-changing market conditions north Florida. It’s awesome to be with an organization that provides full service to its clients and to its agents, as well."

Media Contact: Ron Whittington (904-563-0402)