Condo Conversions Sweep Venice's Apartment District, Rents Skyrocket

Strategic Insights -

As longtime landlords face ballooning property taxes and dwindling returns on their investments, many are abandoning their rental properties and converting them into condominiums, altering the character of Venice's apartment district. In a move that demonstrates the city's shift towards more lucrative but less affordable housing options, developer Kevin Ward has secured approval for his third condominium project in three years, despite a slowing real estate market. Ward's latest project, Kelley's Way, will feature 23 units that will sell for between $750,000 and $1 million, a significant drop in price from his previous development, Kymberly's Court, which was slated to sell units for as much as $1.5 million each.

Key Takeaways:

  • The assessed land value in Venice has increased by 160 percent since 2001, leading to skyrocketing property taxes for landlords.
  • Longtime landlord Gary Boruff has sold his rentals to developer Kevin Ward, who will replace 15 rentals on Park Boulevard with 23 condominiums.
  • Developer Kevin Ward has had to curtail his plans due to the slowing real estate market, and has delayed construction on Kymberly's Court by a year.
  • The condos at Kelly's Way are between half and three quarters the size and price of those at Kymberly's Court.
  • Planning commissioner Benny Weaver praised the design and landscaping of both projects, while others expressed concerns about the dwindling pool of rental apartments and the condo conversion of the apartment district.
  • Don O'Connell, a landlord who owns many of the remaining apartments in the district, has been warning the city about the loss of affordable housing options for five years.

Statistics:

  • The assessed land value in Venice has increased by 160 percent since 2001.
  • Gary Boruff's rentals, which recently went for as little as $450 per month, are being replaced by condominiums that will sell for between $750,000 and $1 million.
  • The condos at Kymberly's Court were initially planned to sell for as much as $1.5 million each, but may be broken up into smaller units and have their prices slashed.
  • The delays in construction on Kymberly's Court have pushed back the start date to 2007.
  • The condos at Kelley's Way will be between half and three quarters the size of those at Kymberly's Court.

Sources:

  • "Venice plans discussed: Council to review affordable housing law," by Frank D. James, Herald Tribune, October 2001
  • "City can help stop slipping away," by Joseph Gaither, Sarasota Herald Tribune, December 2006
  • "Council splits on affordable housing law," by Frank D. James, Herald Tribune, January 2007
  • "Kymberly's Court condos delayed," by Joseph Gaither, Sarasota Herald Tribune, February 2007