Legacy Owners Caught in the Crossfire as Wall Steet and Investment Corporations Seek to Buy Into and Then Terminate Associations and Sell to Developers
Fla. News — A troubling new trend is sweeping across Florida’s real estate market: Wall Street corporations buying into condo associations, taking over the board of directors and management, and then attempting to terminate the association to sell the land and buildings to developers for redevelopment. This phenomenon often called a hostile takeover in the big corporate world, can have significant implications for legacy owners, who may either benefit from or be devastated by these actions.
This phenomenon has been observed in various parts of the country, with Florida, California and New York being among the hardest hit. According to the American Bar Association (ABA) report, “the termination of condominium associations has become a lucrative business, with corporations and investors seeking to profit from the redevelopment of condominium properties.”