©2012 RealEstateMojo.com All Rights Reserved.
Web Design, Maintenance and Internet Development by
WebXperts Design, Inc., an Atlanta Web Design Company

Condo Conversion

The low interest rate affliction that has crippled apartment fundamentals for several quarters is driving the biggest condominium conversion boom in two decades. Condo developers are swarming markets across the country, paying a premium to acquire and transform rental properties into condos. While the successful sale of condos can generate cash-on-cash returns of between 15% and 30% or more in a matter of months for converters, the trend also enables apartment owners to cash out at the top of the market. In addition, conversions create more affordable housing in areas famous for steep single-family home prices. How hot is the conversion trade? Through mid-May of this year, condo converters paid $1.6 billion, or $155,400 a unit, according to New York-based Real Capital Analytics. If that pace continues for the balance of the year, the dollar amount paid by converters to acquire apartments will easily surpass last year's total of nearly $2 billion, or $123,575 per unit. 'There's hardly any major or quasi-major market where condo conversions — even downtown loft-type of conversions — haven't caught on,' says Arthur Nevid, managing director of investment and lending for Charlotte, N.C.-based Mountain Funding. The firm provides senior and mezzanine debt, as well as preferred equity, to opportunistic developers for condo conversions and other property types. 'Everybody's jumping on the bandwagon to get into the conversion business because it seems so exciting and so robust,' says Nevid. ' It's a fever, and it's all over.' But a rising interest-rate environment historically has signaled the end of rampant conversion activity, and condo experts are fully aware of what's happening in the bond markets. Since bottoming out this year at 3.65% on March 17, the 10-Year Treasury yield climbed more than 100 basis points to 4.8% in mid-May, and the Federal Reserve Board continues to signal that it will raise its short-term Fed Funds Rate as the economy heats up.

---

Real Estate Mojo, Real Estate Mojo, Real Estate Mojo Buyer Home, Contact Our Team, Testimonials, Dream Home Finder Form, Featured Listings, Search Our Listings, School Info, Mortgage Info, Buyer Tips, Listings Outside Georgia, Real Estate Mojo Seller Home, Your Home's Value, Seller Tips, Developer opens new 'bank' on Chattahoochee, Yahoo Local Listing For Real Estate Mojo Located at 125 Clairemont Ave Ste 500 Decatur, GA 30030, Yahoo Local Listing For Real Estate Mojo Located at 376 Mell Ave Ne Atlanta, GA 30307 , Yahoo Local Listing For Real Estate Mojo Located at 211 Winter Ave Ne Atlanta, GA 30317, Yahoo Local Listing For Real Estate Mojo Located at 2912 Highway 11 Mansfield, GA 30055

---

decatur real estate, atlanta real estate, stone mountain real estate, pine lake real estate, mcdonough real estate, stockbridge real estate, lilburn real estate, marietta real estate, tucker real estate, decatur homes, decatur properties, decatur realtor, decatur real estate agents, decatur, atlanta, stone mountain, pine lake, mcdonough, stockbridge, lilburn, marietta, tucker, real estate sales, buyer broker, buyers agent, real estate, multiple listing service, condo, condo conversion, townhouse, prequalification, mortgage loans, home locator, investment homes, investment properties, http://oakhurstbusinessassociation.org, relocation specialist, residential, real, estate, residential real estate, houses, homes, real estate, estate homes, fine homes, foreclosed property, bank owned property, property, realtor, realtors, for sale, condominiums, townhomes, single family residence, view homes, duplex, duplexes, split levels