Milan Condominiums Success Story

Renovated Florida condos sold as multifamily asset for 30% premium

Overview

With $4.5 million in repair work required on the property, the Milan Condominiums, a community with 240 units in Apopka, Florida, was faced with a massive special assessment burden. As a predominantly investor-owned property, Milan was a unique property due to its significantly low owner occupancy rates.

Challenges

With the multi-million dollar special assessment-required repair work conducted, Milan had significantly increased its property value—not as individual condo units, but as an entire multifamily property. With a great location and the recent renovations, it was clear that the sale of Milan as an entire property could make a substantial profit for owners. 

“Milan was worth more money as a multifamily property, and there was not a lot of activity on condo unit sales at the time, so it was clear that the sale of Milan could make a substantial profit for owners,” explains John Cadden, Principal at Condominium Advisory Group. 

When our advisors stepped in to help Milan owners navigate the deconversion process, the biggest challenges the team faced were educating the condo owners about the deconversion process, and explaining how much more valuable Milan would be when sold as a single multifamily property to one owner instead of individual units to multiple owners.

“The real estate market changes fast, so with such a great property and the right market conditions, we knew that the time to sell was now. With this type of asset sale, you have to adapt with the market and the times because the circumstances can change on a dime,” details John.  
“Our condominium property was at a crossroads. We had just completed a major renovation after a lengthy battle with an insurance company. We had several special assessments and a bank loan we needed to address. Mike Fish and John Cadden developed a plan to deconvert the property and sell it for a substantial amount above the market for all owners. They led us through the plan and executed it flawlessly. I highly recommend that all condominium associations facing challenges partner with Condominium Advisory Group,” shared Donald Cadman, former owner and Board Member of The Milan Condominiums.

Results

By selling Milan as an entire multifamily property, the owners greatly benefitted from an over 30% premium to what they could have sold their units for individually.

In addition to benefiting the owners, the Milan sale was also a success for the tenants because no one was forced to leave since the buyer wanted to keep the current tenants in place. Even if tenants were unsure about staying, they could sign a short-term lease until they determined the best course of action for themselves. 

“During deconversions, the owners or tenants residing in their units want assurance that they’re not going to get kicked out as soon as the sale closes,” explains Adam Matyskiel, Senior Managing Director at Condominium Advisory Group. “Nine times out of ten, the buyers want tenants in their units, so they’re willing to sign leases with the existing tenants before closing.”

As part of the deconversion and sale process, Condominium Advisory Group assembled an expert support team that included attorneys that specialize in Florida condominium law, title companies, engineering firms, and commercial brokers. For the Milan property, we worked with Rental Heroes Property Management, Lowndes Law, First American Title, and Institutional Property Advisors (IPA) to ensure Milan’s success.

“The amount of premium that the Milan owners earned by selling versus staying at the property is that much more valuable if additional repairs would be required under the new guidelines,” concludes Adam.

Services

• Termination Trustee Representation
• Receivership
• Financial and Construction Consultancy

Looking for the right support for your Florida condominium association?

If your association is struggling to navigate the new mandates under new condominium legislation, our expert team at Condominium Advisory Group can assess and determine the best course of action for your condominium community whether that be undergoing a deconversion, receivership, or construction.