Sample report - not for resale
Condo Conversion Sales
Investment Market Report
commentary
3rd Quarter 2004
summary statistics
Apartment properties deemed suitable for
condo conversions are commanding a
significant
premium.
Recorded
condo
conversion sales activity reached $6.3 billion
over the past 12 months, representing 16% of
overall apartment sales. Condo conversion
sales volume increased 326% versus 34% for
other apartment communities during this period.
Pricing has increased over twice as much for
properties with condominium potential relative to
other apartments over the past 12 months.
In markets such as southern California and
southern Florida where converter activity
accounts for well over 50% of sales, yields in
the 4 to 5 percent range have become
commonplace. In the Southwest and Midwest,
condo conversion activity has been limited,
representing only 2% and 5% of total sales,
respectively.
Public REITs continue to capitalize on rising
apartment values, and have become very
aggressive sellers to condo converters, who
tend to have private local or regional origins.
market volume
$40.3 billion
past 12 months
past 12 mos, > $5 mil
condo,
$6.3,
16%
Price Per Unit
condos
rental
$6,330
$1,485
326%
$33,982
$25,279
34%
$160,000
$150,546
$116,307
29%
$77,709
$69,609
12%
$100,000
6.13%
6.55%
-62
7.06%
7.73%
-77
12 mos avg.
Sales Volume ($mil)
1 year ago
percent change
Price Per Unit
1 year ago
percent change
Capitalization Rate
1 year ago
basis point change
condo convs
% of asking price
1 year ago
97.1%
96.2%
95.8%
95.6%
$120,000
$80,000
$60,000
Q3
'01
4
Q1
'02
2
3
4
Cap Rate (unleveraged initial yield)
12 mos avg.
$/unit
Cap Rate
7.0%
0-5 yrs
$120,678
6.7%
$83,477
7.0%
16-30 yrs
$69,417
7.3%
6.0%
bottom 30%
bottom 10%
4
condo convs
Q3
'01
4
2
Q1
'02
3
4
Sales Volume
pricing: percentile ranks
median
3
Q1
'04
2
3
rental apts
8.0%
6-15 yrs
top 10%
2
8.5%
6.5%
past 12 mos, > $5 mil
Q1
'03
7.5%
prices by age
past 12 mos, > $5 mil
rental apts
$140,000
9.0%
top 30%
rental
apts,
$34.0 ,
84%
page 1 of 4
$/Sq.Ft.
$147,451
Cap Rate
5.5%
$122,155
5.9%
$111,675
6.2%
$5.0
$98,986
6.5%
$4.0
$92,596
6.9%
$3.0
$86,418
7.2%
$80,027
7.6%
$2.0
$71,493
8.0%
$63,209
8.7%
$7.0
billions
Q1
'03
2
3
4
Q1
'04
2
3
quarter
trailing 12 mos
$6.0
$1.0
$0.0
$2.8
$0.5 $0.5 $0.7
$0.2 $0.1 $0.1 $0.3 $0.2 $0.2 $0.3
Q3
'01
4
Q1
'02
2
Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $5 million and greater. ©2004 Real Capital Analytics
3
4
Q1
'03
2
3
4
$1.3
$1.6
Q1
2
3
'04
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Sample report - not for resale
Condo Conversion Sales
7
Investment Market Report
3rd Quarter 2004
page 2 of 4
regions and markets
past 12 mos
condo conversions
$ mil
$/unit
cap
buyer composition
rental apartments
$/unit
volume (mil)
DC VA burbs
$288.2
$194,227
—
$1,194.5
$146,315
cap
6.8%
Baltimore
$81.5
$209,512
—
$657.3
$103,171
6.6%
DC MD burbs
$10.1
$78,516
—
$668.6
$99,255
7.7%
others
$195.4
$185,729
5.2%
$1,047.5
$69,438
6.9%
Mid-Atlantic
$575.2
$188,395
5.2%
$3,567.9
$98,137
7.1%
Chicago
$196.9
$182,146
6.8%
$961.7
$85,549
7.8%
Detroit
$86.5
$91,572
7.5%
$192.4
$57,618
9.2%
Minneapolis
$58.0
$139,423
—
$213.2
$69,660
7.8%
others
$22.5
$53,699
8.6%
$1,206.4
$43,860
8.0%
Midwest
$363.9
$127,206
7.4%
$2,573.7
$57,008
8.1%
Manhattan
$236.1
$296,173
—
$1,518.6
$232,385
5.8%
No NJ
$222.5
$413,569
5.5%
$635.4
$155,323
6.3%
Boston
$305.4
$243,573
—
$392.8
$120,344
6.3%
others
$121.5
$216,139
7.8%
$1,926.2
$79,692
7.4%
Northeast
$885.5
$281,009
6.7%
$4,473.0
$117,526
6.4%
Miami
$1,189.5
$145,538
5.1%
$684.5
$90,877
6.5%
Atlanta
$177.1
$125,244
—
$1,520.8
$68,445
7.1%
Broward
$452.1
$154,564
5.9%
$734.4
$95,339
6.9%
others
$749.9
$100,476
6.1%
$4,664.6
$60,692
7.3%
Southeast
$2,568.5
$128,587
5.9%
$7,604.3
$66,523
7.1%
Dallas
$21.5
$120,112
—
$1,669.4
$56,976
7.5%
Phoenix
$25.5
$95,149
—
$1,354.7
$61,300
7.5%
Houston
$30.4
$152,022
—
$1,141.4
$49,696
8.1%
others
$77.8
$58,277
7.7%
$2,370.1
$59,317
7.8%
Southwest
$155.2
$78,307
7.7%
$6,535.6
$57,168
7.7%
Los Angeles
$379.9
$217,804
7.1%
$2,750.3
$146,886
6.1%
San Diego
$929.2
$195,216
5.3%
$960.0
$139,350
5.7%
Las Vegas
$217.2
$73,850
7.4%
$941.1
$63,149
7.8%
others
$255.4
$161,675
5.8%
$4,575.6
$94,196
6.6%
West
$1,781.7
$161,607
6.0%
$9,226.9
$103,568
6.6%
condo
convs
private
user/other
inst'l/foreign
92%
rental
apartment
1%
2%5%
64%
53%
all core
1
2
3
4
5
6
7
8
9
10
reit/public
2%
4%
buyers
Crescent Heights Investments
MCZ Development Corp
Troxler Residential Ventures
El Ad Group
Chetrit Group
SunVest Resort Communities
19%
22%
15%
21%
sellers
Archstone Communities
AIMCO
Vornado Realty Trust
Essex Property Trust
Tennessee Consolidated
Altman Development
Daniel J Furlan
Pacifica Hospitality
Bradford Group
LaSalle Investment Management
Property Markets Group, Inc
Watt Commercial Properties Inc
JEMB Realty Corp.
Pacific Property Company
seller composition
private
condo
convs
rental
apartment
all core
Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $5 million and greater. ©2004 Real Capital Analytics
user/other
58%
reit/public
1%
68%
55%
8%
inst'l/foreign
30%
11%
1% 18%
13%
15%
22%
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Sample report - not for resale
Condo Conversion Sales
Investment Market Report
3rd Quarter 2004
page 3 of 4
Date
Property
Address
Location
Herndon, VA
30 Recent Transactions
Yr Blt
Units
Price
$/Unit
Cap
Buyer
Oct-04
Avalon at Fox Mill
13001 Cabin Creek Rd
2000
165
$38,000,000
$230,303
-
Wills Co.
Oct-04
Tanglewood Terrace
1564 Tanglewood Ln Escondido, CA
1986
24
$5,050,000
$210,417
-
Hammer Ventures
Oct-04
Villa Marine Apartments
525 Marine St
San Diego, CA
1964
12
$6,000,000
$500,000
-
CFRA Inc
Oct-04
Crossroads Apartments
3605 Ash St
San Diego, CA
1986
92
$20,000,000
$217,391
-
Davlyn Investments Inc.
Oct-04
Summit Sand Lake
8927 Latrec Ave
Orlando, FL
1994
416
$38,000,000
$91,346
-
American Invsco Corp.
Oct-04
Monarch at Carmel Valley
12356 Carmel Country Rd
San Diego, CA
2000
225
$83,000,000
$368,889
-
Hammer Ventures
Oct-04
The Savoy on Palmer Ranch5100 Northridge Road Sarasota, FL
2000
324
$30,175,000
$93,133
7.2%
Oct-04
Triana at Corona Ranch
1018 Vista De Los Cerros St
1991
328
$59,000,000
$179,878
-
Pacifica Cos.
Oct-04
4455-4473 Home Ave
4455-4473 Home Ave San Diego, CA
1985
42
$4,500,000
$107,143
-
Maisel Presley Inc
Oct-04
Oct-04
Oct-04
Oct-04
Coronado Manor Apartments1560 Coronado Ave
Waerstone at Vallejo Apartm 1333 N Camino Alto
Madison Avenue Manor
3535 Madison Ave
Forest Glen Townhome Apa 20146-20259 Cohasset St
1969
1978
1971
1972
76
180
88
204
$8,750,000
$20,250,000
$14,100,000
$34,000,000
$115,132
$112,500
$160,227
$166,667
4.5%
5.0%
3.9%
5.5%
Oct-04
Fletcher Hills Pines
1280 West Main St El Cajon, CA
1974
44
$6,225,000
$141,477
4.4%
Sep-04
Brownstones on McCue
2400 McCue
2001
200
$30,404,400
$152,022
-
Corona, CA
San Diego, CA
Vallejo, CA
San Diego, CA
Winnetka, CA
Houston, TX
BF Group
Coronado Manor Homes LLC
Hammer Ventures
Skylight Investments
1280 West Main LLC
Choice Condominiums
Sep-04
Warner Center
5515-5555 Canoga Ave
Woodland Hills, CA
1987
1,279
$300,000,000
$234,558
-
Troxler Residential Ventures Joint
Sep-04
Lincoln at Delaney Square
300 E South St
Orlando, FL
2003
364
$42,200,000
$115,934
-
Tarragon Realty Investors Inc. Joi
Sep-04
Jamestowne Village
1523 N Van Dorn Alexandria, VA
1964
378
$56,532,823
$149,558
-
Mid-City Urban LLC
Sep-04
River West
401 S 1st St
Minneapolis, MN
1989
416
$58,000,000
$139,423
-
Turnstone Group LLC
Sep-04
Westchester at Briarcliff
1999 Cliff Valley
Atlanta, GA
2003
270
$37,500,000
$138,889
-
El Ad Group
Sep-04
Westchester at Dunwoody
1850 Cotillion Dr
Atlanta, GA
2003
398
$48,200,000
$121,106
-
El Ad Group
Sep-04
Collwood Point
5055 Collwood Blvd San Diego, CA
1974
51
$9,500,000
$186,275
-
Maisel Presley Inc
Sep-04
Alexan Virginia Center
9480 Virginia Center Blvd
Vienna, VA
2003
327
$77,000,000
$235,474
-
Crescent Heights Investments
Sep-04
Latigo at Silverado Ranch
2300 Siverado Ranch Blvd
Las Vegas, NV
1997
400
$35,600,000
$89,000
8.3%
Sep-04
Centergate Celebration
745 Centergate Dr Orlando, FL
2001
287
$47,000,100
$163,763
-
SunVest Resort Communities
Lexin Capital
Sep-04
Tuscany Place
4860 Rolando Court San Diego, CA
1975
99
$11,800,000
$119,192
-
Matthew Maisel and Robert Presley
Sep-04
The Alexan
2665 SW 37th Ave Miami, FL
2002
200
$31,000,000
$155,000
-
SunVest Resort Communities Joint V
Sep-04
Park Vista Apartments
900 LaCosta Circle Sarasota, FL
1972
108
$6,297,083
$58,306
7.0%
White & Associates
Sep-04
Bay Club Tower
3300 Ne 191 Street Aventura, FL
1990
702
$137,500,000
$195,869
3.5%
Chetrit Group
Sep-04
Plaza 440
440 N Wabash Ave Chicago, IL
1992
457
$107,000,000
$234,136
-
Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $5 million and greater. ©2004 Real Capital Analytics
http://www.rcanalytics.com
Sample report - not for resale
Condo Conversion Sales
Investment Market Report
3rd Quarter 2004
page 4 of 4
Date
Property
Address
Location
Herndon, VA
30 Recent Transactions
Yr Blt
Units
Price
$/Unit
Cap
1998
435
$145,700,000
$334,943
-
Crescent Heights Investments
1989
120
$16,000,000
$133,333
-
Pacifica Hospitality
Sep-04
Museum Towers
13001 Cabin Creek Rd
Sep-04
Mission Grove
1564 Tanglewood Ln Escondido, CA
Sep-04
Cottages
525 Marine St
San Diego, CA
1965
65
$15,100,000
$232,308
-
Sep-04
Savannah Ridge Apartments3605 Ash St
San Diego, CA
2001
59
$7,100,000
$120,339
6.5%
Buyer
Nevis Homes
IGL Real Estate
Sep-04
Morningside on the Green
8927 Latrec Ave
Orlando, FL
1984
174
$17,800,000
$102,299
-
local investor
Aug-04
2000 Lincoln Park West
12356 Carmel Country Rd
San Diego, CA
1931
195
$45,000,000
$230,769
-
Nick Gouletas
Aug-04
OceanCrest
5100 Northridge Road
Sarasota, FL
1968
942
$143,000,000
$151,805
-
MCZ Development Corp Joint Venture
Aug-04
Signature at Scottsdale Horiz1018 Vista De Los Cerros St Corona, CA
1995
268
$25,500,000
$95,149
-
Oculus Development Joint Venture P
Aug-04
Carmel Pointe
4455-4473 Home Ave San Diego, CA
2002
200
$63,000,000
$315,000
-
Pacifica Hospitality
Aug-04
Aug-04
Aug-04
Aug-04
Florida Club
Palermo Apartments
Whitney on Main
Park Hill
1560 Coronado Ave San Diego, CA
1333 N Camino Alto Vallejo, CA
2001
2003
1970
1969
200
230
280
264
$19,000,000
$58,200,000
$56,000,000
$27,800,000
$95,000
$253,043
$200,000
$105,303
-
SunVest Resort Communities Joint V
Integral Partners
Hamilton Company Joint Venture New
RBGEM LLC
Aug-04
Winery Estates
1280 West Main St El Cajon, CA
1970
106
$6,290,000
$59,340
8.0%
Aug-04
Villa Redondo
2400 McCue
1990
125
$26,250,000
$210,000
-
3535 Madison Ave San Diego, CA
Winnetka, CA
20146-20259 Cohasset St
Houston, TX
United Development Group
Pacifica Hospitality
Aug-04
Lincoln Manor
5515-5555 Canoga Ave
Woodland Hills, CA
1978
41
$6,500,000
$158,537
-
Hammer Ventures
Aug-04
The Grand Venezia
300 E South St
Orlando, FL
2002
336
$49,000,000
$145,833
-
F & M Hotels
Aug-04
Lincoln Pointe Apartments
1523 N Van Dorn Alexandria, VA
1991
285
$41,000,000
$143,860
-
Tarragon Realty Investors Inc. Joi
Aug-04
Le Club at Saga Bay
401 S 1st St
Minneapolis, MN
1992
332
$34,286,900
$103,274
-
Professional Management Inc (Miami
Aug-04
OceanView Apartments
1999 Cliff Valley
Atlanta, GA
1971
400
$51,166,700
$127,917
-
Crescent Heights Investments
Aug-04
Carmel Mountain
1850 Cotillion Dr
Atlanta, GA
1988
338
$69,940,500
$206,925
-
Silverstone Communities Also Known
Aug-04
Fountains at Countryside
5055 Collwood Blvd San Diego, CA
1987
168
$10,200,000
$60,714
6.5%
Atlantic American Realty Group
Aug-04
Belleair Pines Apartments
9480 Virginia Center Blvd
Vienna, VA
1988
80
$5,700,000
$71,250
6.4%
Belleaire Village Condos (Knoxvill
Aug-04
Waverly at Surfside
2300 Siverado Ranch Blvd
Las Vegas, NV
2003
111
$33,600,000
$302,703
-
Margolias Realty
Aug-04
St Charles Regency Apartme745 Centergate Dr Orlando, FL
1951
221
$7,500,000
$33,937
-
Eli Khoury
Aug-04
North Park Towers
4860 Rolando Court San Diego, CA
1974
313
$23,668,551
$75,618
-
Aug-04
The Arbors at Park Place
2665 SW 37th Ave Miami, FL
1985
92
$10,900,000
$118,478
4.4%
Aug-04
North Park Place
900 LaCosta Circle Sarasota, FL
1974
253
$19,131,449
$75,618
-
Global Equities and Loans
Aug-04
Essex on Lake Merrit
3300 Ne 191 Street Aventura, FL
2002
270
$88,000,000
$325,926
-
Emerald Fund Joint Venture Lennar
Aug-04
La Jolla Village
440 N Wabash Ave Chicago, IL
1975
184
$43,000,000
$233,696
-
Daniel J Furlan
Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $5 million and greater. ©2004 Real Capital Analytics
Global Equities and Loans
Mosaic USA Joint Venture Grosvenor
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