The development of land is often a complicated process, with the developer having to consider whether the new development will generate profits in a particular location. One significant commercial real estate market development taking place in Florida is a high rise featuring 358 units. The high rise in St. Petersburg was originally planned to be used for rental apartments, but the developer is now exploring the idea of converting the building to a condominium.
In St. Petersburg, the 17-story building currently under construction, known as 330 Third, is being seen as ideal for conversion to a condo because of its water views. The building also is being designed with amenities and finishes one would find in condo apartments. The building, being developed by American Land Ventures, offers several advantages, such as being close to a business district and major employment centers. The area is also known for its golf courses and beaches.
In the downtown area, condo prices have significantly appreciated. Luxury condo prices have risen by a whopping 14 percent over this past year. In addition, the prices have increased by nearly 70 percent since the late summer of 2012.
With the Florida economy picking up, many commercial real estate developments in the bay area are being converted from rentals to condos that can be owned individually. However, failure to take the proper steps during a real estate transaction can cause a deal to quickly go belly-up. An applied understanding of related laws can help to prevent setbacks during commercial real estate deals, especially those involving sophisticated transactions.
Source: tampabay.com, "Will hot Tampa Bay market convert St. Petersburg high rise to condos?", Susan Taylor Martin, March 10, 2015