Condo Conversion Market Hits Bottom in Charlottesville

I say “bottom” because investors typically don’t make such moves unless they’re reasonably confident that bottom is upon us on near. (one hopes)

There is opportunity everywhere …

The Goldstar Group of Bethesda, MD has acquired 265 rental condominium flats and townhomes at Barracks West in Charlottesville, VA for $13.3 million ($50,000 per unit) in an off-market short sale. Located just a half mile from the University of Virginia’s business and law schools, the Barracks West units were placed in receivership by Suntrust Bank in late 2011 after the previous owner defaulted on a $22 million loan. The new ownership plans to invest an additional $4.5 million in capital improvements.

…

This acquisition marks the fifth “fractured condo” acquisition that The Goldstar Group has closed in the last three years.

That’s the first time I’ve heard the term “fractured condo” …

At the height of the bubbly/speculative market, some of these units were selling for between $100k and $180k … (PDF)

The HooK has a bit more information.


Some background on condo conversions in Charlottesville –February 2007 – Condo REversions coming?

February 2007 – Are condos a good investment?

March 2007 – Why some Charlottesville condos are risky

August 2007 – Condo conversions in the Charlottesville area

April 2008 – And possibly the other shoe in the condo (conversion) market

September 2008 – 30% “Discounts” on Condos in Charlottesville

If you’re interested, the Barracks West development is just west of the Georgetown Road/Barracks Road intersection.

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