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Condominium and Triplex Foreclosures Continue to Rise in Florida

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By : John Cutts    99 or more times read
Foreclosed multifamily properties, including condominiums and triplex foreclosures, continue to rise in some areas of Florida, although not as fast as residential foreclosures. Recently, a luxury condo property was taken back by its lender as a result of a foreclosure auction conducted in the second week of 2011.

Foreclosure homes for sale in Boca Raton, FL, and in other key markets of the state still dominate the foreclosed property market, although there have also been a handful of commercial properties that have fallen into foreclosure in the past few weeks. The most recent one is the luxury condo complex at the southern part of Miami Beach that fell into foreclosure on October 2009. Developer BR Villa Luisa reportedly found it hard to pay the loan worth $73 million, which resulted on lender iStar Financial foreclosing on the property.

Although commercial foreclosures in Florida are not as numerous when compared with residential foreclosures, the worth of the commercial properties becoming distressed are still high enough to make commercial foreclosures significant in terms of dollar amounts. According to iStar officials, the condo was a fantastic project, but like other real estate properties in the area, it was unable to avoid the impact of the industry crisis.

The lender is reportedly focusing on filling the vacant units of the property, with offer prices reportedly averaging a thousand dollars for every square foot. The condo was built in 2006 and was made available during the height of the foreclosure crisis, when multifamily properties and triplex foreclosures were starting to rise in number in the state. Only three units had been sold since the building opened more than a year ago.

Some analysts believe that, despite the presence of foreclosed home for sale properties, the location of the condominium is actually a stable area for different pieces of real estate. They stated that the plan of iStar to start a multimillion refurbishment of the place is justified since the investment will be worth it in the future.

Area Realtors have also stated that, for the most part, condo projects and triplex foreclosures in the region have shown better chances of price recoveries than other commercial markets in Florida. The renovation of the condominium is slated to start within the year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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