A Pennsylvania businessman has paid $165 per square foot – at least $15 per foot below the construction replacement cost - for 26 units in the new but struggling Edge condominium in West Palm Beach, according to the Palm Beach Post.
The highest closing price in the tower was $475 per square foot in 2007, meaning the buyer, Ed Dunlap, chairman of the Canonsburg, Pa.-based roofing company CentiMark, purchased the units at a 65 percent discount off the market peak.
Dunlap was the high bidder on six units at a Nov. 15 auction at a price that was 20 percent higher than the purchase amount he ultimately paid.
In the seven weeks since the November auction, Dunlap negotiated to buy from the developer, Wood Partners, an additional 20 units at a total price of $5 million for all 26 units, according to the story.
The Edge purchase represents the third bulk purchase of new condos in South Florida to close.
“Buyers are beginning to demonstrate that the going rate for a bulk condo deal in South Florida is between $165 and $250 per square foot,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “Buying in this price range begins to make sense from a cash-to-carry perspective.”
Peter Zalewski can be reached at 305-865-5629 or by email at peter@condovultures.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .
Copyright © 2009, Condo Vultures® LLC
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