Fort Lauderdale Condo Building for Sale: Cost of Repairs Too High
Category: Active adult communities
January 10, 2025 — In a sign of what is to come from Florida’s strict new condo laws, an entire condo building in Fort Lauderdale is for sale. The condo owners can’t afford the millions it will cost to repair it.
Damage from saltwater to the building’s foundation is only part of the problem faced by the condo owners. Residents at Springbrook Gardens in Fort Lauderdale were forced to evacuate last September after an engineer warned of an unsafe foundation. The roof also needs expensive work, and there have already been many special assessments.
According to one owner, the condo is spending $1 million in engineer studies and to get the building up to code. Foundation restoration work is estimated to cost over $4 million. There are only 18 units in the 70 year old building, so even though there might be some loan assistance, the cost per unit would work out to be about $222,000, a pretty large number.
Condo owners have apparently agreed to sell the building rather than spending that kind of money on repairs. In all likelihood the buyer will tear it down and build something bigger. The decision of course means that the owners, many of whom have lived there many years, will have to find a new place to live.
Editorial comment: We believe this is the initial salvo in what will become a torrent of condo buildings deciding to sell rather than repair, particularly in Florida. As of 2022, the state was home to 912,000 condominiums aged 30 years or more. According to the University of Florida, In Miami, Dade, and Palm Beach counties over 74% of the units are over 30 years old.
Comments: Do you see this happening in your condo building, or in other states? Please share your thoughts in the Comments section below.
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Comments on "Fort Lauderdale Condo Building for Sale: Cost of Repairs Too High"
Danno says:
If the law wasn't passed, folks would complain the next time a building collapsed and then blame the politicians. The building is 70 years old so if it was located anywhere, it would likely be a dump in need of huge repairs to remain viable or be too pricey to put big dollars into the property. This will create a renovation (and in this case a demo then rebuilding) boom in FL. Many jobs will be created in the skilled and building trades. 70 years old properties were not built to modern electrical, plumbing, HVAC, insulation/energy or Miami-Dade hurricane standards. Therefore, the new property will also have a much better carbon footprint once completed and installed with energy star appliances.
Admin says:
This is all true, a new building will have many advantages, particularly to the developer. But the folks, most of them retired, who live there now are going to have to find a new place to live in their old age. They will undoubtedly get some of the equity back, although if they have a big enough mortgage they might not get anything back. It is a sad story, but one that is about to be repeated over and over again. Condo boards and owners have some tough decisions to come. The FL legislative seems to be considering some relief, but I wouldn't expect any bailouts.
Larry says:
Who among us wouldn’t love to wake up avery morning to a beautiful sunrise over the ocean? But as Bob Dylan wrote (and sang), “Don’t go mistaking Paradise for that home across the road.”
Mike says:
A five part series from the Tampa Bay Times about corporations buying properties.
https://project.tampabay.com/buying-up-the-bay/