Condo Bulk Deals
Bulk deals - transactions involving at least 10 units - are a proven solution for developers who are struggling to sell condos in the tricounty South Florida region of Miami-Dade, Broward and Palm Beach.
During the Great Recession, I was fortunate enough to represent buyers - ranging from wealthy individuals to hedge funds, university endowments to private equity groups - in a number of bulk deal transactions with struggling developers, some of whom continue to build today.
For every bulk deal that I brokered on the buyside, there were probably five times as many multitmillion dollar transactions that failed to close due to a number of reason, including market outlook concerns, investment committee rejections and worries about future resale financing options.
These bulk deal transactions typically represented an opportunity for cash-rich buyers and a lifeline for cash-strapped sellers.
The buyers generally benefited from being able to acquire new condo units at prices that were below replacement cost in return for purchasing at a time when others were afraid to do so.
For the sellers, the bulk deals usually provided a solution for the developers to offload large blocks of unsold units and secure a much-needed capital infusion to stay afloat, stave off lenders or wind down projects.
We enjoyed a four-year run of brokering bulk deals from 2007 through the end of 2010, helping to chip away at the massive overhang of unsold condo supply in the South Florida market at that time.
As a result, many investment groups, developers and brokers still think of me today when it comes to distressed condo deals in South Florida.
It is against this backdrop that I have been pleasantly surprised by a new trend emerging in South Florida: the return of the condo bulk deal.
For the last 15 years, bulk deals have largely been a relic of the past as new developers have been able to sell off units at record-high prices to enthusiastic buyers who are bullish on Miami and South Florida.
All of this suddenly changed after President Donald Trump’s Liberation Day speech on April 2, 2025. This is the day the president announced his new tariff strategy to slap duties - starting at 10 percent - on most U.S. imports.
It is not the new tariff rates themselves that prompted developers to suddenly reach out to me in an attempt to unload their unsold condo inventory but rather the volatility that has since followed in the stock and bond markets.
The stock and bond market volatility is exacerbating an already fragile South Florida condo market that is still reeling from the Surfside condo collapse in June 2021 when nearly 100 people died and a $1 billion settlement was paid out to the families of the victims.
Condo resale supply is mushrooming. Resale and rental prices are falling. Maintenance fees and special assessments are surging at many condo associations.
Florida’s already high insurance rates are only adding to the pressure, prompting many individual owners to consider selling, especially those in Vintage buildings that are at least 30 years old.
South Florida now has more than 20,000 Vintage condos listed for resale as the busy 2024-25 Winter Buying Season wraps up at the end of April, according to a recent report.
Since Liberation Day, I have been approached by four developers with nearly 10 condo projects and development sites in South Florida that they want to sell sooner rather than later.
Each developer - all of whom claim their projects are not in distress - cited price discovery as the reason for contacting me so that they can gauge institutional demand for their projects.
All of the initial asking prices are slightly discounted off of the current “market” value but still far too high at this time to attract serious bulk buyers who would consider purchasing the wholesale offerings given the current economic conditions.
Some of the projects are blocks of unsold units in newly completed buildings while others are developable sites entitled for new “luxury” condos towers.
Given my experience and relationships in this segment of the South Florida condo market, I invite bulk buyers and concerned developers to reach out to discuss available inventory or the potential sale of their projects.
Licensed since 1995, I am the broker-owner of Condo Vultures Realty™ and work exclusively on the buyside of the deal. While I prefer to have my colleagues handle individual unit transactions, I am interested in participating in bulk transactions that ideally have not yet been offered publicly.
For more information, please visit Condo Vultures Realty™ or call our office at 305-865-5859.
—Peter Zalewski, Founder of the Miami Condo Investing Club™
The views and opinions expressed in this report are for general informational purposes only. It is believed to be accurate and complete based on current market trends but cannot be guaranteed or warranted as circumstances change without notice. It should not be considered as financial, legal, tax or investment advice. This content should not be relied upon as the sole basis for making any financial decisions. Before making any investment or financial decisions, you should consult with a qualified professional to determine the suitability of any investment or strategy for your individual circumstances and goals.
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