Luxury Waterfront Resurrection Brings Local Opportunities Back to Life

REQRentals

Inspired Forum Member
Registered
October 27[sup]th[/sup], 2014 - TAMPA ` After being mired for years in lawsuits and foreclosure proceedings, one of the bay area's most ambitious marina and condo projects ` New Port Tampa Bay ` may soon be getting a new lease on life.


http://www.tampabay.com/news/business/realestate/developer-acquires-once-hyped-tampa-condo-project-new-port-tampa-bay/2203902


While this is very local news I thought to post it as it presents more specific opportunities as compared with general market data. There are several ways to make practical use of this information.


The complex comprises not only luxury condos but also waterfront retail and marina. The complex will be public access and should greatly enhance `walk ability` and values of area homes.


There are smaller single storey homes available in the area for around 100k which rent for 1200-1300 per month. They are priced moderately above land value and the development potential is excellent. I would be happy to email listings or some similar deals we have done for clients.


There is also a lot of new construction in the area as these older homes are replaced with newer and larger models. This is sure to increase in the immediate area of the complex if it goes ahead. The condos were to start at $ 600,000. To build a 2500 sq ft luxury home costs about 200K plus land.


There is also a `hybrid` strategy to rent out the $ 100K properties while advertising a new build on the lot. When someone puts a contract and deposit on the new house we then set about getting it vacant and starting construction. This allows the property to earn income right up until you have a solid construction contract.



Of course there is always the possibility of further delays in the waterfront development or even that it does not proceed at all for some reason. In the case of the former you are getting paid very well from the rents while you wait. Even if the project does not proceed the area is still experiencing excellent growth among Tampa neighborhoods. On a more general note both the size of the labour force and employment are at record levels in Tampa and the population grows about 2% per year. BLS labor graphs:




http://data.bls.gov/timeseries/LAUMT124530000000004?data_tool=XGtable


While the economy and population continue to set new records prices are still well below peak
 
Top