The Florida Prime Residential Opportunity Fund has been created by London-based Strategic Real Estate Advisors, with the intent of investing $1 billion in Florida luxury homes that are bank-owned. Strategic Real Estate Advisors is more commonly known as the asset management firm that invested in London’s Heron Tower; however, the firm is now managing the $1 billion generated by several wealthy Europeans and Middle Eastern individuals.
The plan is to buy homes that have been foreclosed on, oceanfront condominiums, and undeveloped land that is approved for housing, and then sit on the homes for a minimum period of seven to ten years.
Real estate advisor—Jack McCabe, CEO of McCabe Research & Consulting of Deerfield Beach, Florida—believes that if the group has the time horizon, that they will be much better off.
McCabe stated, “In a market like Miami, there’s a lot of inventory to clear and the litigation surrounding foreclosures will draw things out for years.”
Strategic Real Estate Advisors’ CEO—Pierre Rolin said, “We’re in no rush.” Rolin estimated that the newly developed investment fund could purchase homes for around $400 a square foot, in a market that currently sales luxury homes for about $500 a square foot; down from more than $1,000 during the housing market peak of 2006.
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They just have to avoid catching a falling knife. Alot of stuff was selling for obscene prices due to the fact there were unqualified buyers that were allowed in the market place. Just because it’s selling for $500 per sq ft now (and they can get it for $400) doesn’t mean it can’t drop to $300.
So very true! Not to mention that the price of these homes are going to increase and make this guy a TON of money. I wish I had enough disposable income to do the same thing.
if a foreign investor thinking investing in Florida than this is the right time and that for sure, will get very good return on their investment.
I wonder what they think of their investment now that the bubble has burst? The growth in Florida real estate was unsustainable.