Developers find rentals an alluring proposition

Melo Group's Skyview
Melo Group's Skyview

South Florida’s new condo market is built with renters in mind. After the loss of thousands of rentals to condo conversion during the last real estate boom, and resurgent market focused on luxury condos, 13 new rental apartment projects with 3,508 units were developed recently in Broward and Miami-Dade, with another 9,841 units on the way, the Miami Herald reported, citing a pipeline report from the Fort Lauderdale-based Hunter Group of Institutional Property Advisors.

Despite a revival of condo construction, unit inventory remains tight, and with many people either unable or unwilling to buy, rentals have become an attractive prospect for developers and yield-chasing investors.

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SkyView, a 32-story tower that opens in mid-September developed by Miami-based Melo Group, exemplifies a new generation of rental developments emerging in South Florida.

Just like during the last cycle, Jorge Pérez’s Related Group is leading the pack. Related has 13 market-rate rental projects with about 4,000 units in the works, the Herald said. [Miami Herald]Emily Schmall