By ADRIENNE P. SAMUELS, Times Staff WriterLow mortgage rates but pricey single family homes? Rental units turned into condos are another option.
Don Madio used to rent his apartment.
Now he owns it.
Madio, who lives in the Audubon Condominiums in the Feather Sound area, is one of thousands joining the nationwide trend of buying into "rondos," or rentals converted into condos.
Rondos are a cheaper and better located option than single-family homes in Pasco County, said the 72-year-old insurance agent.
"The only reason I was thinking about (buying) was because the interest rates were so doggone attractive," said Madio, a 15-year renter. "I have a garage, an end unit with a balcony and a fireplace, two beds, two full baths and my own private entrance overlooking the golf course."
He is seconds from Interstate 275, across the street from a Publix, near a hospital and in a community where the developer throws New Year's Eve parties for residents.
All for $169,000.
Five percent of Tampa's apartment stock and 11 percent of Pinellas' have or are expected to "go rondo." That's about 10,300 conversions since 2003.
Like a single family home, a rondo's pull comes down to location, price, amenities and quality. That's why Atlantic American Realty Group snagged the Cloisters apartments (now Fountains at Countryside), just north of Westfield Shoppingtown Countryside. Built in the 1980s, the 168-unit complex has concrete firewalls between some units.
Each unit is gutted. All pipes, flooring, air conditioning and kitchen equipment are replaced. A butterfly garden, Pilates room and 11-person jacuzzi are planned.
Prices range from $101,500 to $157,000 - far lower than $167,000, the median single family home price for Tampa Bay. Forty-one units sold in three weeks.
Villa Sonoma, near Tampa's International Plaza, doesn't offer golf lessons or wine cellars. The location and construction is enough.
"We've sold 60 percent in just eight weeks," said Michael Caggiano, sales manager.
Some conversions are expensive, depending upon location. At the "15 minutes from downtown Tampa" Waterford Luxury Condominiums in Palm Harbor, 1,000-square-foot one-bedrooms start at $150,000. Other models cost up to $237,900.
Renovation and construction prices add to the cost of the home - sometimes. Waterford, formerly the Essex Luxury Apartments, is two years old, so there is no need for new appliances or to upgrade anything, said Jon Preciado, sales manager. Eighty of the 170 "as is" units have been sold.
Still, not everyone is convinced rondos are a good investment. For one, the units might flood the market, causing a drop in prices and reverting unsold communities into half-rental/half-owner.
Others don't think it's wise to spend upward of $130,000 on a tiny apartment with no garage.
"The prices are insane," said John Boitano, 60, one of a handful of renters still living at the Cloisters/Fountains at Countryside. (Conversion developers are required by law to allow existing residents to live out their lease.) "If you're going into the $150,000 range, buy yourself a home and get the land."
Some buyers also worry about sounds traveling through walls, inefficient windows and roaches from neighbors.
Preciado suggests buyers get a home inspection and read the condo documents - which include maintenance fee information.
"In every condo conversion I've seen, ultimately you're at the mercy of the original builder," said Preciado. "We have cinder block and some framing (but) unless you have separation between the walls, you're going to hear something.'"
