``Our units aren't as big as a single-family home, but for the location and the price, the condo is someone's choice in some neighborhoods,'' Senkbeit said.
With land prices escalating, he said, apartment complexes are typically 20 percent to 30 percent more valuable to sell as condos than to keep as apartments.
When consulted recently about selling one of its apartment complexes, Senkbeit told me they'd rather convert their apartment complexes to condos themself, understandably. The biggest problem investors and developers find in their adamant desire to convert apartment complexes into condos is the fact that some of the most attractive complexes' owners will keep and convert. Other apartment complex owners, though, may contact me anytime for representation in the sale of one of their apartment complexes. It might make four principals of some very well-to-do groups, including REITs, I know very happy. Some of them probably won't care if your apartment complex has a HUD loan with a lengthy lockout date on it. After all, there's a way out of everything, isn't there?
What does an apartment complex suitable for condo conversion look like? It looks like the one above that's under contract for purchase with a backup (listed with Equity Pro) in Pinellas Park, Florida. Will they be converted to condos? No one will know until the sale is closed, if either contracts get through their due diligence period and close.
Some of the hottest condo conversions to buyers include The Club at Feather Sound and The Quarter at Ybor, and those units aren't even available for purchase, yet, except to VIPs. The condo conversion trend will likely continue to be hot, as long as apartment complex owners continue to profitably sell to developers and investors seeking to make a profit from selling apartments converted into condos.
Article comments
1 - Scott Schrantz
There are no less than eight condo conversions happening in downtown Reno, Nevada right now. All the closed casinos are being bought, and their hotel towers turned into condos. Nobody's paid this much attention to downtown in 30 years!
Read about the condo rush here.