Apartment Condo Conversion Deals CoolingHere's an
article on condo conversion deals that have fallen flat, introducing a new buzzword:
Small said people who don't know the Phoenix market are throwing $4 million to $5 million into conversions while "people here in this market are quietly converting back."
Depending where in the process, developers are "repartmenting," a new national buzz word. If not too many condos have sold in a complex, the developer might offer a condo buyer a swap to another condominium project that has been more successful and then repartment back.Although here's an oddball claim:
Other developers are being stuck with homeowner association fees for units not sold. For example, if only 20 condos are sold in a 100-unit complex, at $25 per month, that means the developer is paying $2,000 a month in HOA fees for empty condos.HOA dues of only $25 per month? That seems extraordinarily low.
