FORT LAUDERDALE, FL-Less than a year after mckafka Development Group closed on the then-biggest bulk condo deal in the city, the 62 units at Los Olas by the River have officially sold out for $13.3 million. Mckafka bought the units in the seven-story residential building from California-based Montecito Property Co. last July for $10.2 million.
McKafka sold the last 10 units on May 23. Most of the 62 units sold to foreign investors from South America and Europe. The two-and three-bedroom units range in size from 1,123 to 1,462 square feet and were priced between $175,000 and $264,000.
“Those areas where the supply has decreased, will be the first to recover,” Fernando Levy-Hara, managing member and CEO of mckafka Development Group, tells GlobeSt.com. “There is currently 2% supply in Fort Lauderdale and just 60 units in Aventura. These are the places where the market has already corrected, and the crisis is moving to the past.”
Mckafka Development Group’s business strategy focuses on the acquisition and successful turnaround of distressed properties. Within 10 months, the firm resolved the units' financial issues, rented the units to local tenants, stabilized the condo association budget issues and sold the units up to 50% lower than the market value before the housing crisis to individual investors.
Now, Levy-Hara expects to see developers begin to buy land, get into pole position and start new construction. “Of course pre-development takes between 12 to 18 months, therefore we will start seeing cranes around these areas by mid-2012,” he says. “These projects will be completed by the middle or end of 2013, when the economy will be recovered, rents going up and the credit market more active.”
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