Deal Marks One of Central Florida’s First Large Scale Purchases Since Condo Market Downturn
ORLANDO, FL– Orlando-based Smith Equities Real Estate Investment Advisors recently represented the buyer in one of the metro area’s first large-scale purchases of a fractured condo conversion.
Darrell H. Johnson, (photo at middle left) CCIM, and Kevin C. Miller (photo at bottom left) of the Special Assets Disposition Group at Smith Equities exclusively represented Winter Park Residences Corp. in the purchase of the remaining 209 units of 256 total units at Summerlin at Winter Park Condominiums on Goldenrod Road. The new ownership has completed renovations and commenced leasing and sales of newly remodeled apartments.
Forme
rly known as Savannah Grand, the property was converted to condos in March 2006 by Hialeah-based Puig Inc. In May 2007, Puig Inc. filed for Chapter 11 bankruptcy and included Summerlin at Winter Park in that filing. The fractured condo conversion was sold out of bankruptcy by Banco Popular, which held the senior debt on the property.
“Fractured condo conversions represent a unique challenge to sell,” said Robert Smith,(top right photo) CCIM, president and founder of Smith Equities Real Estate Investment Advisors. “As multifamily specialists, we have developed an understanding of the dynamics of owning a fractured condominium development and have worked through the intricacies of dealing with the bankruptcy court, the banks, and the myriad complicated condo documents.”
According to Smith, managing the mixture of individual owners and
renters in fractured condo conversions presents many specific challenges for the investor. Generally, 
both a sales staff and leasing staff must be actively selling or leasing unsold units.
ORLANDO, FL– Orlando-based Smith Equities Real Estate Investment Advisors recently represented the buyer in one of the metro area’s first large-scale purchases of a fractured condo conversion.
Darrell H. Johnson, (photo at middle left) CCIM, and Kevin C. Miller (photo at bottom left) of the Special Assets Disposition Group at Smith Equities exclusively represented Winter Park Residences Corp. in the purchase of the remaining 209 units of 256 total units at Summerlin at Winter Park Condominiums on Goldenrod Road. The new ownership has completed renovations and commenced leasing and sales of newly remodeled apartments.
Forme
rly known as Savannah Grand, the property was converted to condos in March 2006 by Hialeah-based Puig Inc. In May 2007, Puig Inc. filed for Chapter 11 bankruptcy and included Summerlin at Winter Park in that filing. The fractured condo conversion was sold out of bankruptcy by Banco Popular, which held the senior debt on the property.“Fractured condo conversions represent a unique challenge to sell,” said Robert Smith,(top right photo) CCIM, president and founder of Smith Equities Real Estate Investment Advisors. “As multifamily specialists, we have developed an understanding of the dynamics of owning a fractured condominium development and have worked through the intricacies of dealing with the bankruptcy court, the banks, and the myriad complicated condo documents.”
According to Smith, managing the mixture of individual owners and
renters in fractured condo conversions presents many specific challenges for the investor. Generally, 
both a sales staff and leasing staff must be actively selling or leasing unsold units.Also, conversions incur higher property taxes that will need to be appealed. In addition, carefully structured financing must allow for sales, and accounting practices must delineate shared cost and operation of the property between the investor and Homeowners Association.
“Even though fractured condo sales are negotiated at far below unit replacement cost, many would be buyers are still waiting on the sidelines hoping to negotiate these deals at ’fire sale’ prices,” said Johnson. “They could easily miss this opportunity because those investors who take time to understand the marketplace and how to get these transactions financed are now actively buying and closing deals. “
About Smith Equities:
“Even though fractured condo sales are negotiated at far below unit replacement cost, many would be buyers are still waiting on the sidelines hoping to negotiate these deals at ’fire sale’ prices,” said Johnson. “They could easily miss this opportunity because those investors who take time to understand the marketplace and how to get these transactions financed are now actively buying and closing deals. “
About Smith Equities: Founded in 1990, Smith Equities Real Estate Investment Advisors (SEREIA) is a leader in apartment sales and financing throughout Florida with investment sales and financing of over 22,298 Apartments in 158 deals. SEREIA sold some of the first condo conversions in Florida and now is focused on helping banks understand and dispose of non-performing assets tied to condominium conversions.
(Photo of clubhouse at Summerlin at Winter Park Condominiums is at right above)
(Photo of clubhouse at Summerlin at Winter Park Condominiums is at right above)
For more information, please go to www.amecs.com or call (407) 422-0704.
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