Low
interest rates have brought about a new species of living
spaces: the rondo.
It's
a special name for a rental apartment converted into a condo.
And,
if you haven't noticed, they're everywhere.
With
costs ranging from $130,000 to $210,000, these 700- to 1,300-square-foot
domiciles are quickly becoming the home purchase of choice
for today's young adult.
"The
conversions for the past 24 to 36 months has been on an
increase, as have the number of new condos," said
Rudolph Prinz, with the state of Florida's Office of Land
Sales. "You can pretty much link it to low interest
rates."
In
Hillsborough and Pinellas counties, some
2,600 apartment units became condos in the past year. Experts
predict this year's conversions to figure in at 3,000. People
buy these smaller homes because they don't want the suburban
lifestyle, but also can't afford to buy a larger house within
the city center, according to Realtors.
For
developers, it's often cheaper to convert than to build
new, said Rosalind Sedacca, with Audubon condos in
Pinellas County's Feather Sound area.
"When
a developer finds a community in a wonderful location, it
really makes more sense to either convert and remodel or
do a gut renovation and rebuild on the site," she
said.
The
307-unit place sits near the bay, just seconds from Interstate
275, a Publix, a hospital and the Carillon office park.
Developer Ceebraid-Signal Corp is even installing elevators
for the three-storied property.
But
that's nothing compared to the company's other rondo property,
located in Tampa: Beachwalk.
Located
near Rocky Point, Beachwalk plans a rock-climbing
wall, free golf lessons, virtual golf, a boardwalk over
a nature preserve and a community wine cellar. Prices range
from $140,000 to $190,000.
The
Fountains at Countryside in Clearwater, is also selling
a complex amenities package that includes a butterfly garden.
Atlantic American Realty is gutting every apartment and
replacing the plumbing and air conditioning for homes ranging
from $105,000 to $157,000.
The
complex's construction includes sound-numbing firewalls
between units, said Debra Koehler, president.
"Others
are just slapping on paint and carpet and they're not replacing
the air conditioning unit," said Koehler. "You
get an old apartment. We're trying to set ourselves above
everybody else."
When
communities go rondo, developers must follow rules set by
the Florida Statutes, including sending notice to current
renters and allowing the renter to buy the unit at a regular
market price.
Structurally,
there isn't much difference between a rondo and a condo.
Hearing your neighbor's television set is due to construction
quality, said Marc Rosenwasser, vice president of Meadow
Wood Property Company, who manages 10 central Florida apartment
complexes.
The
rondo market blew up in 2003, said Rosenwasser, who oversaw
the sale of La Plaza del Sol, which was converted
into the Sienna Villas off Kennedy Boulevard in Tampa.
"There
are very few areas available for new construction ... the
only possibilities are to buy apartments and convert them,"
he said.
Villa
Sonoma, near Tampa's International Plaza, doesn't offer
golf lessons or wine cellars. The location and construction
is enough.
"We've
sold 60 percent in just eight weeks," sales manager
Michael Caggiano said.
-
Adrienne P. Samuels can be reached at 727 445-4157 or at
samuels@sptimes.com
Questions
to keep in mind
when
buying a condo conversion
Before you plunge into the
new world of rondos, consider these:
- How much is the monthly
maintenance fee? What does the fee cover?
- Are there any penalties
for re-selling earlier than two years?
- Will the homeowner's association
allow you to rent out your new home?
- What amenities are available,
and when are they available?
- Is it possible to add soundproofing
to the walls and ceiling, if not already added?
- What kind of insulation
is being placed in the roof? (R-18 and higher is pretty
good. Anything less and, if you're on the top floor, you
might lose all of your air conditioning out through the
roof.)
- Are there firewalls between
each unit?
