Condos Rented After The Housing Crash Are On The Market Again
A telling shift in condominium positioning is a sign of economic improvement across South Florida.
Unlike seven years ago when developers converted some of the plushest condominiums to rentals to mitigate losses at the bottom of the housing market, owners are now sprucing up apartments and offering them for sale as condo reversions.
That's what happened with Peninsula on the Intracoastal, a gated Boynton Beach development with 40 luxury waterfront condominiums and 30 oversized townhouses—all turned apartments during the lean days.
Built in 2008 and 2009 with decorator touches, gourmet kitchens and porcelain-tile floors, developers meant to attract buyers, not renters, to the 1,400 to 1,900-square-foot waterfront homes at 2700 N. Federal Highway.
"You would never put rentals there to begin with," said Mark Pordes, CEO of Pordes Residential Sales and Marketing, who purchased the development with Peninsula Boynton Property LLC for $22.5 million and is now offering it for sale. "It's just too valuable. The property was built with the standard of a condo—the level of finish, the wide water views, the surrounding multimillion-dollar homes. It's a gem."
Lending conditions have improved and the market has recovered to such an extent, that instead of generating rents of about $2,000 to $4,000, Peninsula on the Intracoastal condominiums can sell for $390,000 to about $700,000, Pordes and his partners say. They plan to begin sales efforts by the end of this month.
Deals In Pipeline
At the former Oaks at Biscayne Landings condominiums in North Miami, a similar repositioning campaign is underway.
The once beleaguered complex at 15051 Royal Oaks Lane was in foreclosure three years ago. But after a $5 million face-lift, when even the name was changed to One Fifty One at Biscayne, New York-based iStar Residential put 160 of the 373 units up for sale.
Now the two- and three-bedroom units that recently rented for $1,500 to $2,500 are for sale starting at $240,000.
iStar hired the DevStar Group, a Miami-based real estate development and investment firm, to rebrand the property. It refurbished the lobby, replaced furniture and wall coverings, upgraded the landscaping, got new televisions, recreation centers and acquired land from the city for a pool deck.