Condo resales….riverfront renaissance wrinkles
Surprise Surprise, resales of Ft Myers riverfront condos have been disappointing.
A year after Fort Myers’ first downtown condominium tower opened, two of its units have sold for less than the initial buyer paid.
In one instance, county records indicate, the buyer lost $46,000. In the other, the price dropped almost $34,000.
Taken together, the two sales have raised the question of whether they may be a harbinger of a softening market.
I am not at all surprised at the lackluster resale activity for these riverfront units. Over the past couple of years, I have had numerous opportunities to participate as an investor in the riverfront renaissance. To date, I have not jumped into this market as I see a number of problems with these developments.
My biggest issue is the lack of amenities in the direct vicinity of the projects. While downtown Ft Myers does have some interesting restaurants and clubs, it is currently not an inviting walk from the towers to these establishments. I think it is a real shame that the condo projects did not include a retail element on the ground floor. This is a concept that is now endorsed by most major cities with world class waterfronts.
From an investment standpoint, there is just no way to generate positive cash flow on units in these towers. While long term these projects should appreciate handsomely, the carrying costs are way too high to use as a rental investment. There are plenty of other condo opportunities throughout the region that make more sense.
Condo sales trigger doubts [News-Press]