50th Condo Bulk Deal Transacts In South Florida

MIAMI, FL--A month before the two-year anniversary of the first condo bulk deal in South Florida, a New York investment group has transacted what is the 50th acquisition of at least 10 new condo units in a single deal in a distressed project in the tricounty region of Miami-Dade, Broward, and Palm Beach, according to a new Condo Vultures® White Paper™.

The milestone was reached on June 7 in Palm Beach County with the purchase of 146 luxury units in the 2700 North Ocean condominium (above centered photo), and not in Miami-Dade County, where 41 of the previous bulk deals have been completed to date, according to the report based on the Condo Vultures® Bulk Deals Database™.

"It is foretelling that the 50th condo bulk deal occurred outside of Greater Miami, where the inventory is quickly being depleted," said Peter Zalewski, (lower right photo) a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.


 "As the attractive bulk situations disappear in Greater Miami, private equity groups and institutional investors are being forced to revise their strategies in terms of quality, location, and price.

"Today, a bulk buyer is much more willing to consider a scenario in Fort Lauderdale, West Palm Beach, Orlando, or even Tampa compared to a year ago when the focus was strictly on Greater Miami."

The dwindling amount of product combined with more than 500 private equity groups and institutional investors searching for deals is forcing the change in strategy, industry watchers said.

Since July 2008, bulk buyers have acquired the deeds or notes for more than 4,800 units with 6.1 million square feet of saleable space in South Florida for about $1.5 billion.

 This figure works out to about $308,500 per unit and $244 per square foot, according to the report based on government records.

Contact:  Peter Zalewski, Condo Vultures®,  800-750-0517 or by email at peter@condovultures.com.