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What's Brewing

Timing rules cost in condos

By Susan Thurston
Published November 4, 2005

It stands like a fortress on the northern edge of Harbour Island, wedged between a hotel and an apartment complex. You can't miss it coming over the westside bridge.

ParkCrest opened this spring as one of the first condo projects near downtown Tampa to complete construction and put out the welcome mat.

Its 336 units sold out in a frenzy. They ranged from about $169,000 to more than $800,000.

If ParkCrest proves a model for future large-scale condo projects, here's what we know so far.

You can make decent money flipping, especially if you buy early and sell early. You can also get stuck with an investment property you can't rent or might to wait awhile to sell it.

A look at the first level of the eight-story complex shows 11 of the 49 units - about 22 percent - have changed hands since March or April, according to the Hillsborough County Property Appraiser's Web site. Keep in mind those records are as of August and don't reflect sales by owners who sold their contracts for units but never closed.

Sellers of those 11 units - many of them one-bedroom with lofts - are feeling pretty good. On average they made a $50,000 to $100,000 profit, excluding taxes, closing costs and Realtor fees.

One unit sold for $189,900 then resold for $293,000. Another jumped from $249,000 to $346,000. Not a bad return over two or three months.

Elsewhere in the building, former Bucs player John Howell bought a third-level unit for $560,000. Three months earlier, the original owner had paid $339,900.

And it should be noted, the place is crawling with Buccaneers, including strength coach Garrett Giemont, linebackers Shelton Quarles, Barrett Ruud and Ryan Nece, and former players Cosey Coleman and Matt O'Dwyer.

Former players Jason Maniecki, now a real estate agent, and Jim Pyne, now an assistant coach for the New Orleans Saints, each bought two. Devil Rays pitcher Scott Kazmir also has a unit.

Lana Pennino paid $320,000 in April for a two-bedroom, eighth-level unit on the side of the building overlooking the cruise ships. A Plant High grad who moved to New York City, she had planned to return to Tampa but instead got married and stayed in the Big Apple.

Did she get stuck with her Tampa condo? Not a chance. She made a quick $100,000, which translated to about $70,000 in her pocket.

She credits her brother, Vince Pennino, a local real estate agent, for nabbing her a deal. He sold 27 units in the ParkCrest.

The main draw is the location, he said. People like being able to walk to the St. Pete Times Forum and Channelside. Many came from the Post Apartments next door or elsewhere in Tampa. Surprisingly, few came from out-of-state.

Local Realtor Gail Bernucca bought a fourth-level unit in March as a rental property.

"I knew that based on the prices, it was going to be a good investment," said Bernucca, a longtime Harbour Island resident. Her unit, bought for $229,900, recently appraised at more than $300,000.

Staking a claim early gave her an advantage. As of Aug. 31, no additional owners could rent their units. The 25-percent rental cap, outlined in the condo documents, was reached.

So if you buy a unit now, figure you've got to live in it or keep it vacant - a costly option for people with another mortgage.

While many buyers are savoring their good fortune, others are still hoping to cash in. More than 35 units are for sale - about 10 percent. That's down from a few months ago but still a sizable chunk.

Prices start at $289,900 for a 1,000-square-foot two-bedroom, two-bathroom unit to $699,900 for a 3/2 with 1,664 square feet. Most are in the mid to high $300,000s.

Some sellers are apparently trying to get creative. A unit originally sold for $239,900 is on the market for $314,000 with a notation that it could be combined with the unit next door for more space.

Space becomes a deterrent for some buyers. Originally designed as an apartment complex, ParkCrest might be a squeeze for a family of four or even a couple with a lot of stuff. Units range from 949 square feet to 2,123 for a four-bedroom.

The one-bedroom lofts have one dinky closet off the master bathroom and a small linen closet in the half-bath. That's it. Christmas decorations? Winter clothes? Take it to relatives.

And let's hope you don't have to make a lot of trips. People on the upper levels have to traverse several floors of parking garage to get to street level. (The upside is that people can park on the level where they live.)

Building boosters would say you're buying a lifestyle and a community, not just a place to store your car and stuff. Residents have access to exercise equipment, billiards and party rooms with a kitchen, TVs and tables. The pool overlooks scenic Garrison Channel, and the courtyard area has a fountain and long pond surrounded by rocking chairs and benches.

Perfect for plotting your next real estate purchase.

THE LAST DROP: Tampa's condo craze isn't just in our minds, it's on paper too. This week, the city said the value of construction permits issued for projects in Tampa surpassed the $1-billion mark for the first time ever.

- Times researcher Cathy Wos contributed to this report.

- Susan Thurston can be reached at thurston@sptimes.com or 813 226-3394.

[Last modified November 3, 2005, 08:47:07]