Condominium developments have been springing up all over in U.S. metropolitan areas, and this trend could easily impact loan sales by increasing the amount of available debt.
Several large projects are currently underway in New York City, Boston, Chicago and Washington, D.C., according to CoStar. In addition, buildings are being built in areas that suffered during the real estate bust, including Phoenix and South Florida.
In Boston, authorities recently authorized plans to create the first parking-free condominium building in the city, The Boston Globe reported. The 175-unit project, which is slated for construction at Lovejoy Wharf, will hopefully show that developers can create New York-style buildings that require residents to rely on resources like public transportation.
The fact that industry participants are looking to fit more condo buildings into cities without using space for garages and parking lots might illustrate the rising demand for these properties.
During a recent industry event, Bill Maher, director of North American investment strategy for LaSalle Investment Management, spoke to the growing desire for condominiums, according to CoStar.
"The only thing we're looking at and thinking about is the apartment market," Maher stated at a panel discussion, the media outlet reported. "There's a condo ripple - I won't call it a wave - developing, and that may influence apartment pricing down the road. But we don't have it in our forecast right now."
Banks that want to sell their condo-related loans amid the current situation might consider speaking with Garnet Capital Advisors, which is currently involved in this space.