In Markets across the Country
Alternatively, How thieves stole a Toronto condo in ‘total title fraud’, selling it for $970,000 – just click the following internet page – a mom and pop have owned a 20 unit apartment building for 20 years and want to sell it. In order to determine the sales potential of the converted units, a market analysis is needed. This part of the process involves conducting a study of the neighborhood and of any competing complexes: an inspection of the exterior of the buildings, the condition of the interiors of the units, the condition of the grounds and the amenity package in place. Rather than selling it outright as an apartment building, they hire a consultant to process the entitlements and sell the building instead at a condo premium to a developer who finishes the job.
As of 2010 the trend of apartment complexes converting into condos is gaining momentum. In 2007, most markets in the US experienced falls in mean condominium sales prices, and far fewer conversions are being performed. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. This page was last edited on 23 January 2023, at 19:40 (UTC). The low interest rate affliction that has crippled apartment fundamentals for several quarters is driving the biggest condominium conversion boom in two decades. In markets across the country, condo developers are paying a premium to acquire and transform rental properties into condos. Some of the projects which have been completed are now selling at auction for discounted prices, or remain unsold. Text is available under the Creative Commons Attribution-ShareAlike License 3.0; additional terms may apply.
The operation of the association or corporation is very important to the success of the condo conversion (after conversion, property maintenance and, ultimately, the enhancement of property values. The marketing of the condos can be done either through a realtor or with in-house personnel. Direct mail campaigns–mailing brochures into apartment complexes–are often very successful. Television spots on cable channels can be very productive as well. Another powerful marketing tool, one that should be taken into consideration going into the conversion, is an attractive financing package that can be made available to potential purchasers of the condos.
However, the term “conversion” is usually reserved for just those projects which involve changing the title (and sometimes also the use) of an existing structure, such as a multi-dwelling apartment building, row dwellings (townhomes) or a commercial multi-unit rental site. There are multiple types of investors involved when there is a hot conversion market. For example, an experienced developer may purchase an apartment building, hire a consultant to put the entitlements in place, and then upgrade the building so that the sales team can sell them as individual condominiums. The market for residential condominium conversions typically arises when the price of single family homes increases beyond the reach of the first time buyer.
