Condo Conversion Craze

Renters are being forced out of their apartments in droves as developers convert them to for-sale condominiums. According to Real Capital Analytics, 2004 saw 70,800 apartments converted to condos compared to a mere 7,800 in 2002 -- an 808 percent increase -- and it appears that the trend has not slowed in 2005, where nearly 44,000 apartments have been sold to developers for conversion during the first five months. Miami, Southern California, Northern Virginia and Las Vegas are hot spots for apartment-to-condo conversions, which provide a more affordable means for first-time buyers to achieve homeownership than single-family dwellings.
However, some renters cannot afford to buy homes, nor can they locate vacant rentals in their areas. Many area experts do not expect the conversions will dramatically reduce the supply of rental units.

Below is a list of condo conversions in Jacksonville area in recent years:

1. Berkman Plaza, downtown Jacksonville
2. Home Street Lofts, downtown Jacksonville
3. Captiva condominiums, Arlington
4. Riviera Parkway Apartments, Avondale
5. The Colony at San Jose, San Jose
6. The Venetian at Ortega River
7. The Lofts San Marco, San Marco
8. Old San Jose on the River, San Jose
9. The Boxwood at Baymeadows, Southside
10. The Carlton at Oak Landing, Southside
11. The Heritage at Deerwood Apartments, Southside
12. The Preserve at San Jose, Southside
13. The Reserve at Pointe Meadows, Southside
14. The Villas of Timberlin Parc, Southside
15. Lakecrest, Southside
16. The Landings at Belle Rive, Southside
17. Montreux at Deerwood Lake, Southside
18. Sonoma Southside, Southside
19. Sail Cove Town Center, Southside
20. The Tivoli at Deerwood Apartments, Southside
22. Williams Walk, Bartram Park
23. Grand Reserve, Intracoastal West
24. Avanti (St. Johns Estates Apartment), Intracoastal West
25. Ocean’s Edge, Jacksonville beach
26. The Palms at Marsh Landing, Jacksonville Beach
27. The Villas at Marsh Landing, Jacksonville Beach
28. Island Club Townhomes, Jacksonville Beach
29. Flagler’s Crossing, Jacksonville Beach
30. Belleza at Ponte Vedra, Ponte Vedra Beach
31. Grand Cay Villas, Ponte Vedra Beach
32. Ocean Grove of Ponte Vedra, Ponte Vedra Beach
33. Ocean Links, Ponte Vedra Beach
34. Summer House in Old Ponte Vedra, Ponte Vedra Beach
35. The Florida Club condominiums, St. Augustine
36. The Preserve at Anastasia Islands, St. Augustine
37. Amelia Lakes, Fernandina Beach
38. The Seasons of Park Avenue, Orange Park

Conversions in the Jacksonville area have increased 45 percent since December, according to Real Data, a real estate research firm that tracks apartment markets in major metro areas of the Southeastern United States. According to Real Data research, more than 1,700 Jacksonville-area apartments were taken off the market to be converted into condominiums in the last six months; 950 units were converted in the six months prior. Nearly 3,000 units have been converted since January 2004.

Condo conversion has many requirements for developers. In addition to the financial, ownership and code issues with apartment conversions, the developers have complex condo conversion law guidelines to follow once they decide to convert:

Setting up condo associations, creating reserve accounts for future repairs and meeting code requirements can be tricky enough for new construction. But the Florida Statutes have separate rules, known as the Roth Act, for transforming apartment buildings into units for sale. Tenants have the right of first refusal when owners decide to convert an apartment building into condos. And when an owner notifies tenants of the pending conversion, the developer has to circulate notices to all units within 72 hours. Tenants also have various rights to extend their leases based on how long they have occupied their units.