(Carl Cronan is editor of Real Estate Florida.)
TAMPA, FL-Developers of the 35-story Element condominium tower have decided to change course before the project is finished and will rent out all 395 units as apartments upon their opening early next year. Novare-intowngroup, a joint venture that also built the neighboring SkyPoint high-rise condo building, is seeking permission from lenders to make the change.
Multifamily sector observers believe the move is positive for Downtown Tampa, which has faced several setbacks lately with condo projects being postponed indefinitely or filing for bankruptcy protection. The largest of these, Trump Tower Tampa, was canceled in late September after New York City real estate icon Donald J. Trump settled a licensing fee dispute with a local developer.
The 32-story SkyPoint tower, which opened last year, has sold at least 80% of its 395 units and is currently offering discounts between $25,000 and $75,000 on one- and two-bedroom homes ranging in price from $239,700 to $517,700, according to a local newspaper advertisement. An undetermined number of sold units are either being rented as apartments or marketed for resale by current owners.
Multifamily market observers believe the developers of Element, which has been under construction since early 2007, are making the right choice in converting units to rental apartments rather than for-sale condos. Besides the current tight market for condo mortgages, they say rents may be more attainable for younger workers within Tampa's central business district.
"I'm bullish on the rental market in Downtown Tampa," Byron Moger, capital markets broker with Cushman & Wakefield's local office, tells GlobeSt.com. "It's a lifestyle choice that makes a lot more sense, and more restaurants and stores are opening there as more people move in."
Moger points out that Tampa's urban condo market still has momentum even in a soft market, and at reduced prices. For example, the 29-unit Towers of Channelside, whose developer recently emerged from Chapter 11 bankruptcy, is offering 150 remaining units at a discount from their original prices when the project opened last year.
Meanwhile, an auction remains scheduled Wednesday for the Place at Channelside condos, with 171 of its 245 units up for sale in a single lot at a minimum bid of just under $17.3 million, or roughly $100,000 per unit. Moger, who is working with Key Developers Group LLC on the auction, says the bids will be accepted in private with the buyer's identity being revealed at a later date.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
