Condo conversions aren’t the next big thing in the South Florida real estate boom cycle, according to some real estate executives and financiers. However, many in the industry hope otherwise.
At a recent panel discussion, CBRE senior vice president Gerard Yetming noted his team has been involved with two South Florida properties that underwent condo conversions: Terrazas, a 324-unit two-tower community at 1861 Northwest South River Drive in Miami, and Peninsula on the Intracoastal in Boynton Beach, a 70-unit condo townhouse project.
Yetming argued that demand for South Florida condos exceeds the supply in the pipeline, according to the Daily Business Review.
“As far as I’m concerned, condo conversions are back, so if you own an apartment building come and see us,” Yetming said at the CBRE conference.
But Carlos Rosso, president of the condo division at Related Group, contested that interest rates and the risk environment was not conducive to turning apartment projects under construction into condos.
“I would rather sell than take the risk of converting,” Rosso said. “I think you guys are going to get us an incredible price from an institutional investor so that we’re not even going to think about converting.” [Daily Business Review] – Christopher Cameron