Local Municipalities Purchasing South Florida Commercial Real Estate at Bargain Prices
In recent months, we’ve discussed a range of topics relating to South Florida’s commercial real estate market. We’ve considered the current state of the market, the benefits of investing in commercial properties and foreclosures, as well as facts you should know before you lease commercial property.
As the commercial market attempts to recover from its slump, properties in Broward County are being purchased by some unexpected buyers – local municipalities. Cities like Sunny Isle Beach and Miami Gardens are taking advantage of commercial foreclosure deals and grabbing up real estate for future expansion projects.
Sunny Isles Beach
The city of Sunny Isles Beach recently secured nearly 1.5 acres of land to use to build a new park. The two retail buildings were purchased for $9.3 million, and the city is in the process of purchasing a third retail property. This follows a previous acquisition of a 2-acre parcel.
Miami Gardens
Miami Gardens is another municipality that is taking advantage of South Florida’s commercial property deals. In early 2009, the city bought a 15-acre parcel owned by Warren Henry, a local car dealer. At the time of the purchase, the property was facing foreclosure, and the city was able to get the prime, sought-after land at a bargain price.
Miami Gardens has also acquired other commercial real estate that was facing foreclosure. For approximately $9 million, the city bought 40 acres of land from Cornerstone Developers. It also spent more than $3 million on 14 acres of land to create a new park and build a senior citizens center.
What you can Learn from the Municipalities
Since the start of the economic crisis, builders and property owners have been forced to hold on to their commercial real estate. Today, the market remains saturated with vacant retail stores, un-leased office spaces, and empty warehouses, as the demand for these properties remains lower than previous years.
While developers and banks are both eager to sale distressed commercial properties that are facing foreclosures, now may be an ideal time for you to consider diversifying your portfolio of investments. But before you dive, both feet first, into investing in commercial real estate, there are a few essential facts you should consider. Please take a moment to review our recent posts regarding buying commercial foreclosures:
Three Good Reasons to Purchase Commercial Real Estate
Facts to Consider Before You Invest in Commercial Real Estate
Leasing your Commercial Real Estate Investment in South Florida
Acquiring commercial foreclosures can be a complex and tedious process if you’re not knowledgeable about the process. If you’re contemplating a purchase in South Florida, you should consider hiring an experienced property acquisition attorney to help you navigate the purchase process.
The acquisition attorneys of Schecter Law represent buyers, sellers, and developers of commercial real estate, whether facing foreclosures or not. Contact us to discuss acquisition of commercial foreclosures and other distressed real estate.
