Bisnow Interviews Jaime Sturgis About Florida’s Condo Challenges

Native Realty CEO Jaime Sturgis was featured in a new Bisnow article detailing the many challenges facing Florida’s condominium buildings amid new state laws. Sturgis spoke with reporter Chloe Gallivan about what he is currently seeing in the South Florida condo sector.

“While condo owners are still trying to fully grasp what the deadline entails, they are already facing the consequences of increased insurance premiums, said Jaime Sturgis, CEO and founder of Native Realty Co.

Before the deadline, Sturgis said the company’s residential division was receiving four to six calls a week of people looking to sell their condos at what would have been a reasonable price if it weren’t for the circumstances.

“A lot of those condos are selling for a fraction of what they would have just a couple years ago,” Sturgis said.

The number of Miami-Dade townhouses and condos on the market with an asking price below $100K doubled last year, while the number of listings at $1M and higher rose by just 25%, according to Miami Realtors data.

As insurance and maintenance costs continue to climb after the deadline and the value of these units continues to decline, financing for these aging properties becomes increasingly difficult. Banks are reluctant to lend on older condos, reducing the pool of potential buyers.

“Banks don’t want to lend on them because they don’t have the appropriate reserves in place,” Sturgis said.”

Click here to read the full article.