Commercial Arcadia at Hwy 20 - 352 Apartments in Freeport

[Matt J]

How many complexes do you think will exit the market by converting to condominiums?

Pointe of View behind Grand Blvd is a good example, that was an apartment complex first. It did convert as the market was bubbling in the early 2000's.

 

[Jimmy T]

Where are they expecting all of the new renters, condo and home buyers to work? The amount of new housing going up in Freeport and south of the bay is just mind-boggling.

 

[PJJ]

Honestly other than the one that already did it (393 south project), I don't think any. That was a wonky project with inexperienced developers and kinda doomed from the start. Also they were converting when the market was frothy, like the other one you mentioned from the last cycle. I could be wrong in this instance, but converting to condos is something done in frothy times. Also the resi market isn't much better as far as I can see so there isn't a ton of pent up demand dying to buy a condo next to, say a megachurch (Moll) or in Freeport like the one next to Owl's Head.

I think the market will just have to eat the dinosaur on everything. Anything with debt that matures within the next 3 years will probably change hands and the new owner at the lower basis with much less debt can lower rents, fill it up and ride it out until there is sufficient demand to absorb all of the units and get rents back to where they are now.