Archstone apartments will convert to condos
The Palm Harbor apartment complex, renamed Meadowlake since its sale, was bought this month by an Atlanta development team.
By NICOLE JOHNSON
Published November 19, 2005
PALM HARBOR - The trend of converting apartments to condos had left North Pinellas largely untouched, but several projects in the works will soon change that.
The latest conversion project is the former Archstone Palm Harbor Apartments at 2690 Coral Landings Blvd. north of Tampa Road. The buildings were purchased by Atlanta development team McRae and Stolz on Nov. 1 for $21-million. The company plans to turn the 168-unit complex into condominiums.
The apartments, built in 1988, have been renamed Meadowlake Palm Harbor.
It's not only the name that's different. Once a pastel shade of peach, the units are now a dark beige. The former owners repainted the buildings before the sale, said Alan McRae, president of McRae and Stolz.
The new owners plan to put in stainless appliances, granitelike countertops, new carpet and tile floors as well as new sinks and faucets in each unit.
Prices will range from $120,000 for a one-bedroom unit to $240,000 for a three-bedroom unit.
Residents at the 25-acre Meadowlake complex will be given first purchase rights to their units. The leases will be honored, McRae said, and residents can have some extra time beyond their leases to decide if they'll stay. Abby Williamson said she won't be buying her three-bedroom apartment.
She pays about $1,000 in rent, but if she decided to buy, that payment would be more like $1,800, she said.
"I can get a decent house for that much," said Williamson, 24, a paramedic.
McRae and Stolz is providing lenders for residents who wish to buy, and will contribute $3,000 toward closing costs.
Condo conversions such as the one at Archstone are nothing new in Tampa Bay.
Since 2000, about 8,000 apartments in Hillsborough and Pinellas counties have been converted from rentals to condos, according to figures maintained by the Tampa Bay Apartment Association. In Pasco County, two apartment buildings totaling 192 units were converted to condos.
But until recently, North Pinellas remained outside the trend.
"When we come into an area, a part of what we do is try to figure out what our competition would be," McRae said. "We didn't feel like we had a lot of that here."
Lansbrook, a 700-unit complex located at East Lake Road, has converted to condominiums. The 272-unit Harbor Club Downs apartments converted to condos in July.
Such conversions are considered a double-edged sword.
Booming real estate prices have driven up the average price for single-family homes in certain areas.
The median price for a newly built home in Palm Harbor in 2003 was $333,000, according to the Pinellas planning department. An existing home went for $170,000. Those prices have jumped considerably over the last couple of years, said Gordon Beardslee, an administrator in the planning department.
Some say condo conversion is an option for those who can't afford the steep prices of a single-family home.
However, those who prefer to rent may be left out of housing options.
"Home ownership isn't for everybody," said Anthony Jones, assistant director of the Pinellas County Housing Finance Authority. He cited time, money and preference as reasons why some rent rather than buy. "You can't push everyone into buying a home."
Jones said maintaining a healthy rental pool also provides a place to live for newcomers who may need time to save money or want to test an area before purchasing.
Locally, the long-term effects of the conversion craze have yet to be seen, said Jones, whose department issues tax-exempt bonds to finance programs for first-time home buyers.
He said some new condo owners may not be prepared for the responsibilities that come with ownership.
"(The units are) built as apartments for someone (else) to come fix it when things go wrong," Jones said. "What's going to happen next month when the guy's bathtub upstairs is leaking, but now that they own it they've got to take care of it, instead of calling someone?"
Thursday night, the new owners of Meadowlake held a party for prospective buyers. They said they don't expect the units to sell as quickly as those in their Orlando conversion project, Central Park at MetroWest, which sold out in a week.
"We wouldn't expect that here," McRae said. "We expect it to be successful, but sales will certainly go into next year."
Nicole Johnson can be reached at njohnsn@sptimes.com or 727 445-4162.