Element Condos, MetroWest: Converting again?
The Element at MetroWest Orlando was one of many apartments that converted to condos curing the condo conversion craze of 2005-2007. Now, many sales later, there are plans for the Element to revert back to apartments. We’re not talking keeping them as condos and just renting them out until the market improves here… we’re talking complete disolution of the COA itself – not good news for anyone who purchased there.
According to the Orlando Sentinel, California-based Karlin Real Estate bought the Element earlier this year, and started unwinding the condo association a couple of months later. This could spell disaster for those residents who bought into the condominiums at the height of the real estate bubble who could now be forced to sell their condos at a loss. The reason being that units that sold for $170K are now worth only about $70K - and that’s all the new owners would be required to offer the current owners for their condos.
The problem here and the cause of this is that more units were left unsold than sold… and so when the bank took them back from the developer and sold them to a new owner, the new owner has a majority interest and can control the fate of the entire condominium.
Clearly the advice for investors is a.) avoid buying even bank owed condos at the Element at this time and b.) find out if your targeted condo complex has a large number of units that remain unsold that could be in the hands of a Receiver, bank or other entity that may be able to control the fate of everyone else that lives there.
For more information on what’s hot and what’s… well, what you should avoid like the plague, stay tuned to the Orlando Condo Blog and contact Orlando’s condo specialist brokerage, Condo Metropolis on 407-290-3408 or email Info@CondoMetropolis.com.website translation