TAMPA-Two area condo conversion candidates have been sold for a total $18 million. G&A Development of Miami paid Tampa-based BWP Inc. $16 million, or $71,430 per unit, for the 20-year-old, 224-unit Bloomingdale Woods Apartments in suburban Valrico.

Westgate RE LLC acquired the 32-unit Westgate Apartments at 3712 Wisconsin Ave. in Tampa from CF Investments Inc., a private Orlando investor, for $2.14 million or $66,937 per unit. At closing, Bloomingdale Woods was at about 98% occupancy; Westgate was at about 70%.

Brokers Casey Babb and Bill Renje of Prudential CRES Commercial Real Estate's Tampa office brokered the transactions. Although the Bloomingdale Woods apartments were acquired for condo conversion, Babb tells GlobeSt.com the property "will most likely offer affordable housing options that will be delivered beginning in late 2006." "The Tampa Bay area markets continue to see robust condo conversion activity due to the strong demand for affordable housing alternatives," Babb tells GlobeSt.com. Three quarters of the units at Bloomingdale Woods are two-bedroom, two-bath homes, averaging 931 sf of living area.

"Some lenders are starting to tighten their lending criteria on conversions, but many converters continue to realize rapid sellouts for conversion properties in our market," Babb says. "With the rise in land and construction materials over the past three years, developers have turned to existing 'sticks and bricks' [properties] which allow them to mitigate the construction risk associated with a ground-up development."

The broker adds, "As the Tampa Bay area continues to create new jobs and continues to realize expansive population growth, condo converters will continue to deliver product and will do so profitably."