Concerned that the U.S. dollar may be at its weakest point, a London-based asset management group is creating a $1 billion fund to accumulate distressed Florida properties, according to the Miami Herald.
Strategic Real Estate Advisors, an equity investor in London’s Heron Tower development, has created the Florida Prime Residential Opportunity Fund to purchase Real Estate Owned (REO) from U.S. lenders. There is no word at this time if the group would consider short sales and foreclosures.
The British opportunity fund intends to raise capital from sovereign wealth funds and rich individuals in Europe and the Middle East, according to new reports.
Strategic Real Estate Advisors is the third group in a week to announce plans to raise capital to pick up troubled Florida condos, townhouses, and single-family house communities at a discount.
NBA center Shaquille O’Neal’s real estate company is launching an enterprise to buy nonperforming residential mortgages in Florida at a discount, according to the Orlando Sentinel.Former New York Gov. Eliot Spitzer is exploring the creation of his own opportunity fund to buy distressed residential property across the country, including distressed markets such as Florida, according to the New York Sun.
The influx of buyers into the Florida market comes as the state largest commercial institution is in the midst of selling off nonperforming real estate loans that triggered $80 million in losses. Florida’s largest credit union is preparing to auction off at a deep discount a waterfront site slated for a condominium development in Palm Beach County.
While the institutional buyers begin to move into the Florida housing market, it’s not difficult to see why individual investors are also focused on the sunshine state.
Nearly 400 South Florida condominiums, townhouses, and single-family houses in the Vultures Database™ have been cut in price to $150,000 or less, with the cheapest residence slashed to $31,000, according to a June study from Condo Vultures® LLC.The under-$150,000 properties in the Vultures Database™ are comprised of 64 single-family houses and 322 condominiums and townhouses scattered throughout 24 South Florida cities and neighborhoods. Overall, there are 4,356 properties including short sales, foreclosures, Real Estate Owned by the bank in the Vultures Database™, according to the report.
Peter Zalewski is a principal with the consulting company Condo Vultures®LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report.
Copyright © 2008, Condo Vultures® LLC
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