Lindsey Lehr Quoted in Miami Herald Article on Condominium Terminations

Just one week after the Miami Herald published Lindsey Thurswell Lehr’s column calling for the Florida Supreme Court to take up a case involving an important question on condominium terminations, the newspaper’s real estate reporter turned to her as well as a prominent condominium developer and a real estate analyst for their insights on terminations. The article, titled “Is Your Condo Ripe for Buyout? Seven Signs that Developers Might Target Your Building,” begins:

South Florida condo owners have it tough these days. Condo assessment fees have gone up nearly 60% in both Miami-Dade and Broward counties, and special assessments have added onto financial costs. To top it off, structural integrity reserve studies are due Dec. 31 and, depending on when a condominium approves its budget, associations will have to start saving for their reserves in 2025 or 2026.

Condo buyouts were on the rise this year — and they can represent an escape to some burdened owners, but a threat to those who could be forced to leave their homes. Condo buyouts or terminations happen when 80% of condominium owners agree to sell to a developer. A deal can move forward unless 5% of owners vote against the deal. . .

It goes on to share insights on terminations and their role in the current market from the three local sources, including these from Lindsey:

. . . Lehr said she now works on an average of six condo termination deals per year in Miami-Dade, Broward, Palm Beach and Monroe counties. Before the Surfside condo collapse, the average had been just two or three deals per year.

Lehr said many unit owners are concerned about where they’ll move if they agree to a termination. It’s hard for them to find a similarly sized residence in the same neighborhood with the same views in today’s housing market.

“I see benefits on both sides. It’s an opportunity for those communities unable to fund reserves and perform some of these necessary structural repairs. At the same time, I feel for those owners unable to stay in their homes,” Lehr said. “Even though developers are paying a premium to purchase units in these buildings, even with the financial gain realized in these sales, it’s difficult for the unit owner to get another oceanfront unit. With skyrocketing real estate prices in Miami, it’s difficult to find something remotely comparable.”. . .

The article also includes Lindsey’s input on Florida’s termination laws and what developers are looking for in target properties:

. . . The submission statement in a condominium act — a document stating the responsibilities and rights of the developer, association and owners — will often define what percentage of votes are needed to approve a buyout. If the document includes Kaufman language — “as it exists on the date here of and amended from time to time” — that means the current law requiring 80% of approval stands. However, Lehr said, if 5% of residents come forward and vote against the termination, then the deal can disintegrate.

That exact situation played out at Biscayne 21 in Edgewater, spoiling what a development team believed to be a done deal. Ever since, developers have been much more conscious in moving forward in situations where a condominium act requires majority approval or creates any gray area. . .

. . . Developers look for buildings often at least 30 years old, Lehr said, since it’s more likely those condominium associations face high condominium assessment fees, special assessments and looming reserves. . .

Our firm salutes Lindsey for sharing her insights on condominium terminations with Herald reporter Rebecca San Juan for this important article for the newspaper’s readers.  Click here to read the complete article.