Buyers See Profit Opportunities in Tampa Condos

Published by nora | Filed under Buyer / Seller Tips, Communities, Market Trends, Miscellaneous, Pinellas County Homes, Real Estate, Shout Outs

The improvements in sales and prices of pre-owned Tampa condos in April showed that investors continue to see great profit opportunities in the Tampa condo market, particularly distressed properties.

There were 1,031 pre-owned condo units that got sold in the Tampa area in April, based on a report released by the Florida Realtors. This total marked a whopping 77-percent increase from the 584 units sold in April last year. The sales price median for the condos sold also increased, making a three-percent jump from $98,800 in April last year to $102,200 in April this year.

For bulk buyers of condos, the prices they paid marked substantial discounts from the peak price levels, but they demonstrated their faith in the recovery and eventual growth of the Tampa area. One big-time investor that continues to see strong profit prospects in Tampa condos is Israeli firm Gamla-Cedron Group, which acquired 144 condo units at Promenade at Tampa Palms for $6 million in cash. Gamla-Cedron got a great deal because it paid only $41,667 per unit, far below the $115,000 paid per unit when Promenade was purchased and converted into condos by another investor in 2006.

The Promenade deal was the third batch of Tampa condos the Israeli firm has acquired since June last year. The first was a set of condo units at Arbors at Carrollwood bought in June for $5.8 million and the second was a set of 185 condos at the Falls at New Tampa purchased in January for $7.5 million.

Just like many other real estate investors during the downturn, Gamla-Cedron plans to initially rent out the units and then resell them when the market gets better.

Another foreign company that has chosen Tampa as the base for its U.S. operations is Webjet Ltd., the biggest Australian online travel agency. Webjet chose Tampa because of the availability of experienced workers and professional services providers that can be hired at costs lower than those in comparable cities.

The U.S. unit, called Webjet Marketing North America, plans to hire customer service representatives for the call center that it will build. In addition to the jobs it will create, Webjet is also expected to help improve the occupancy rates for office condos as it grows its operations.

It was not only residential condos in Tampa that improved in sales in April. Almost 3,000 pre-owned single-family homes in the Tampa metro area were sold in April, marking a substantial jump of 27 percent from the April 2009 sales.  The price median, however, dropped slightly to $132,900.

Throughout Florida, sales of existing condos and single-family homes also climbed up in April. Condo resales shot up by a stunning 55 percent to almost 7,300 units and single-family resales climbed up by 27 percent to 16,781 units.

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