Although there are not many condominium conversions in the works in South Florida, a growing number of applications are in the pipeline, Condo Vultures principal Peter Zalewski wrote in a Miami Herald op-ed, citing state records and industry experts.
Developers have filed to convert two projects so far this year. A Brickell Avenue rental project is also expected to join the slate in the next month. Zalewski attributes a potential comeback to the tight resale inventory, rising prices and a several recently announced projects in the Miami area. One example is the plan to turn a 390-unit apartment complex into a condominium to be called Nine At Mary Brickell Village, located at 999 Southwest First Avenue in Miami.
The number of conversions has dropped quite a bit since the last boom. There were 94 projects created in 2003, 178 in 2004, 370 in 2005 and 327 in 2006, state records show.
“Going forward, the unanswered question is whether condo converters, lenders, and buyers will remember and adhere to the lessons learned from” the last boom-and-bust cycle, Zalewski said. [Miami Herald] — Mark Maurer