A developer has plans for warehouse condos in Largo. They're aimed at small businesses that can't build their own space but are tired of renting.
By PAUL SWIDER
Published September 6, 2006
The talk of the town for years has been condominiums, but one developer is bringing a new flavor to the market.
"It's coming," said Mainstream America's Tony Fernandez of the warehouse condo concept that is increasingly popular in Miami and Jacksonville. "If it's not coming, we're bringing it."
Fernandez is building 34 warehouse condos in a light-industrial area on 114th Ave. N in Largo. The St. Petersburg commercial developer said the units, ranging from $259,000 to $299,000, are aimed at small businesses that need warehouse or light industrial space but can't build their own and are tired of renting.
"The idea is to give the market what it's looking for, which is smaller units," Fernandez said of the Mainstream Business Park.
The concrete-walled warehouses are 2,250 to 2,400 square feet each and include a small office space. They have 22-foot ceilings and a large roll-up garage door, as well as four parking spaces and three-phase power. The complex also includes a covered double truck well for large unloads.
"People don't know about warehouse condos, but we're going to be seeing more and more of these," Fernandez said.
To some extent, a warehouse is a warehouse, so Fernandez is pitching the financial benefits of ownership. Just as in home ownership vs. rental living, the ability to build equity while enjoying tax breaks makes these condos attractive, he said.
Fernandez has a price comparison that shows the five-year net cost of a rental unit is more than $90,000, while the net cost of ownership, after tax write-offs, is one-tenth as much. He cautions the model is for illustration only, but says new owners will see similar savings.
Fernandez said he has several units under contract in his warehouse complex. He is also offering leases and leases with options to buy. He said he expects construction to be complete by early 2007.
The market already is seeing office condos and even some retail condos, all based in part on the same advantages. Fernandez said big business has other ways to leverage its assets, but small businesses can benefit from such ownership deals.
"For a mom-and-pop to sign a 10-year lease for half a million dollars, they're scared," he said. "But small owners can't afford to build their own. This could be very good for them."
In a similar development, boat slips have begun to be sold as condos and Fernandez says he's heard of storage spaces for recreational vehicles going condo too.
"Even mini-warehouses are going condo," he said.
Paul Swider can be reached at 892-2271 or pswider@sptimes.com or by participating in itsyourtimes.com.
