Sunday, August 18, 2013
by Bill McBride on 8/18/2013 07:57:00 PM
From Carolyn Said at the San Francisco Chronicle: Bay Area rental pendulum swings to condos
Some condominium complexes opened at the worst possible time – in the depths of the real estate downturn when home buyers were few and far between. They coped by becoming for-rent apartment buildings instead. But now, as the housing recovery accelerates, several East Bay and South Bay developments are switching back to for-sale condos.
For instance, the 125-unit Broadway Grand in Oakland, developed by Signature Properties, first opened as a condo complex, sold 17 units, and then switched to rentals as the market tanked … Last year it went condo again, and now has sold all but 11 of its units.
Similarly, the Skyline in San Jose with 121 units is now switching to condos after opening as rentals during the downturn. In Emeryville, the 424-unit Bridgewater is switching from rentals to condos. The current phase II, which started in June with 174 homes ranging from $185,000 to $450,000, is finding a receptive audience, said Alan Mark, president of the Mark Co., which is marketing the complex.
The conversion of these condo projects to apartments was an interesting story during the housing bust (and a way to take excess “for sale” inventory off the market) – and now they are converting back to condos (taking advantage of the lack of “for sale” inventory). This is similar to a story by Cale Ottens at the LA Times last week: Condo conversions inch up in Los Angeles.