As interest in the South Florida housing markets continues to ramp up, news has come out that an investment group may be looking to make some substantial purchases in the area. According to the report, Vulcan Investment Partners LLC will purchase approximately 1,200 homes in the South Florida region - homes which were either repossessed or foreclosed on. The residential property purchases could total up to $150 million.
It should come as no surprise to our South Florida readers that Vulcan Investment is reportedly made up of foreign investors. Several of our previous posts have mentioned how foreign interest in the South Florida residential real estate market seems to be at an all-time high.
As the national housing market continues the long slog toward complete recovery, it appears that Vulcan Investment will use the homes it purchases as rental properties, at least until the housing market has recovered enough for the company to turn a profit by selling the homes. But it doesn't appear that this should be seen as "flipping" -- a practice which was popular before the housing bubble burst. Some of the homes may need some work to even become rentable.
More and more stories are emerging of residential development plans in the South Florida area. Thousands of condos are either in the development stage or already in the construction phase, and the numbers for home sales and home values continue to rise in the region. Vulcan Investment may just be one of many real estate investment groups who will now feel comfortable with making big purchases in the South Florida region as the good news continues to come through in the area.
Source: South Florida Business Journal, "Vulcan fund plans to invest $150M in distressed South Florida property," Kevin Gale, Oct. 3, 2012