South Florida Condo Converters Unable To Unload Unsold Inventory; Units Reverting Back To Rentals

Regarding condo buyers who not too long ago thought investing in a unit in a converted rental building might be a good idea, the South Florida Sun Sentinel reports:

• Stephen Mahaffee became one of those new buyers. He had been renting a one-bedroom apartment ... for about 10 years when he got word the building was being converted to condos. So in January he made his move and paid $199,900 for a two-bedroom unit. Less than a year later, he's one of only 18 owners in the 164-unit complex that Bankers Holding Group reluctantly decided to turn back into a mostly rental property. The emerging trend of going from rentals to condos and — when the units don't sell — back to rentals again is what South Florida real estate experts are calling "conversion reversions." Since 2006, about 6,059 units that were once for sale in Broward and Palm Beach counties have been switched back to rentals, according to Jack McCabe, a Deerfield Beach real estate analyst. "The condo-conversions sales market has absolutely fallen off the table," said McCabe.

For more, see Slow housing market spurs condo 'conversion reversions' (With no buyers, market forced to change units back to rentals) (story also available here).