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Wednesday, February 21, 2024

Florida Seeing New Condo Boom

 Developers see luxury condos dotting Florida's shorelines as new construction takes over the first generation of condos. However, it might be tough to convince current residents to sell.

MIAMI – Luxury condos are replacing Florida's first generation of condominiums, which are upwards of 60 years old. Many of those older buildings are slated to come down after the 2021 Champlain Tower South collapse in Surfside and the subsequent passage of regulations.

Ian Bruce Eichner, CEO of the Continuum Co., says it is “the most significant impact on waterfront real estate that you've ever seen in your professional lifetime. These buildings, they have two things. They're 60 years old, they're on the water and they're in ‘A’ locations. And they're crappy old buildings.”

Condo associations are now required to regularly assess the structural integrity of their buildings and fully fund reserves necessary for maintenance and repairs. Many associations are raising their monthly fees significantly, and they must undergo newly required inspections and potentially high assessments that not every condo owner can afford.

Some of the condo owners or associations may be pressured into selling to developers, NPR reported. Florida law requires condo owners receive fair market value for their properties. Eichner says developers have to persuade hundreds of condo unit owners to sell at the same time in order to obtain the totality of the building. He says the land under some of these structures “is worth a million dollars a unit.” He has several condo development projects already in the pipeline but foresees more on the way.

Source: NPR (01/04/24) Allen, Greg

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