The Business Journal of Milwaukee: More condos being marketed as apartments
A few years ago, real estate investors were banking on an overnight success phenomenon – purchasing an apartment building that is already built-out for residential units and selling the apartment units as condominiums. In many cases, downtown Milwaukee saw inventory levels spike within the matter of hours. Examples of these developments include Cambridge Terrace, Courtyard Square, Gallun Tannery, Landmark on the Lake, Lake Bluff at East Pointe, London House, and The Blatz.Now that we have a glut of condominiums in the downtown market, the developer of the newly-constructed River Renaissance, located on the banks of the Milwaukee River in the Historic Third Ward, is considering opting to rent nearly half of its 82-unit building. Rivren Group LLC of Milwaukee, the developer of River Renaissance, claims they have 44 condominiums currently under contract. Pete Millard, writer for The Business Journal of Milwaukee, suggests that River Renaissance is “one of the largest and first condo projects in Milwaukee to offer both apartments and condos.”
What this means to you?
To me, this tells me that the market is finally changing. Unlike most investments, real estate doesn't respond to changing economic times as quickly as other investments. Rivren's decision tells me that our supply of inventory is now beginning to respond to demand.
As I mentioned earlier, we witnessed a significant loss of rental options a few years ago as developers were purchasing apartment complexes and converting them into condominiums. Let's face it, not everyone wants to own real estate. I think it was very damaging to downtown's economy when many apartments were being converted into condominiums.
It was just a matter of time for the demand for downtown condominiums impacting the decision-makers of downtown condominium developments.
For real estate sellers and prospective buyers of downtown condominiums, Rivren's decision will have a significant positive impact on downtown housing. With the further tightening of supply in downtown condominiums, we will soon be seeing prices leveling at their lowest point. We must get to this point before we will see housing prices increase.
Other Downtown Developments
Millard highlights the progress and sales of Park Lafayette, Lake Bluff at East Pointe, Residences on Water, and New Land Enterprises’ latest luxury tower to be built behind the Goll mansion on North Prospect Avenue.
For more information regarding River Renaissance, Park Lafayette, Lake Bluff at East Pointe, and Residences on Water, please do not hesitate to contact me at 414.412.7980 or e-mail at dray@shorewest.com.
Click here to read about Rivren Group’s decision to include apartment units with the River Renaissance condominium association>>>
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Labels: Real Estate
posted by David Ray @ 11:35 AM
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