South Florida Condo Market Entering New Positive Phase

With the for sale sign up on the last two major bulk sales of South Florida condos, investors have cashed out and taken their profits from buying blocks of condos.

While low and mid level condo prices are still in the dumps, at least sellers won’t be competing with investors with large blocks of units to toss on the market.

Key Largo condos, (Gombossy Photo)

“The offering of two broken condominium projects in South Florida could be among the last large-scale opportunities due to the region’s housing rebound,” writes Real Estate Alerts.

“Crescent Heights is marketing 236 unsold units at the Tao complex in Sunrise, about 30 miles north of Miami. Bids are expected to come in at about $68 million, or $288,000/unit. HFF has the listing,” says the recent story.

“Meanwhile, Lone Star Funds is shopping a nonperforming mortgage on Promenade at Boynton Beach. The debt is likely to trade for about $55 million, less than half its unpaid balance of $118 million. A buyer would be able to quickly take possession of 246 condo units, 77 hotel rooms and 19,000 square feet of retail space. Eastdil Secured is the broker.

“South Florida condominium properties devastated by the crash are still available at steep discounts to their one-time values, but in dwindling numbers. Meanwhile, the apartment rental market is thriving and demand for condos has begun to revive, making the properties more attractive to investors. Complexes like Tao and Promenade are now seen as short-term rental plays, with the prospect of an early exit by selling off the units.”


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