LA band Fantasy Island (Alex Jacob and Spencer Frazen) are pretty new on the scene. Their music is oddly soulful, oddly disco and oddly danceable. On their Facebook page they describe their sound as Vintage Psych/Soul Pop.
When I first heard the song "Avenue", it made think that the band Grizzly Bear had become mermen and were playing their first show deep in the Mariana Trench. It's all very odd, but uniquely enjoyable and warm. Even though, at the depths they're playing...it should be ice cold.