Swerdlow Execs Launch Online Condo Exchange

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GlobeSt.com - 6.16.2005 Swerdlow Execs Launch Online Condo Exchange MIAMI-USCondex, an on-line, 24/7, search-to-close condominium marketplace, opens with an initial $5-billion inventory of South Florida condos. By Marita Thomas

MIAMI-USCondex, an on-line, 24/7, search-to-close condominium marketplace, opens with an initial $5-billion inventory of South Florida condos. Billed as "the eBay of the condo market," it is launched by US Condo Exchange LLC, a partnership between principals of locally based Swerdlow Group and New York-based Pacific Alliance Limited LLC, a merchant bank specializing in e-commerce and technology. Richard Swerdlow, CEO of the new company and COO of Swerdlow Group, the developer, tells GlobeSt.com, "Las Vegas will be added very quickly followed by 10 US MSAs within the next 18 to 20 months." They include New York, Southern California, Seattle, Boston, Atlanta and Houston. "We're looking for partners for EuroCondex, AsiaCondex and LatAmCondex." Individual sellers and buyers are represented on just one component of the website. Sellers can list a property, "any size, anywhere," Swerdlow says, for $495 until it's sold. Within 30 days, a for-rent-by-owner component will be added. "We envision a scenario in which an individual investor could buy a unit online and immediately put it back on for rent or a re-sale," he says. For condo developers there is a "CondoClone" component, which enables them to market entire properties before, during and after construction. "This is a relatively low-cost alternative marketing channel," he says, compared to the cost of glossy, full-page print advertisements, "and this goes worldwide." A real-time facilities management feature not only updates sales automatically, but also tracks browser response. The cost of listing is a sliding scale, which Swerdlow says is about $2,500 a month for an entire building or about $10 per unit per month for a building. Not surprisingly, the first development seen on the site is a Swerdlow property. "It was easy to get a photo and details," he says, "but we're an objective site, open to every developer." The exchange began around the buyer capability and the company is "just now taking it to the development community." For brokers, he says, it's similar to an MLS "where brokers can put all their listings on the site, expanding their buyer-market significantly." The site also, however, provides buyers with an instant broker/member of US Condo Exchange. While the entire transaction, including mortgage funding, can be done online, Swerdlow believes, initially, it will be used for browsing, researching and comparing after which individuals will call the toll-free number to complete transactions. USCondex is modeled after cNet and Vehix, which provide online side-by-side comparisons and purchases of electronics and cars, respectively, along with, of course, eBay. Eventually, USCondex will add partnerships with, or paid links to, interior designers, movers, furniture dealers and so forth. "My gut reaction is positive," Brad Capas, senior director and multifamily specialist in the Fort Lauderdale office of Cushman & Wakefield, tells GlobeSt.com. "We've been wondering who would do a clearinghouse for condos. There's certainly a need for more efficiency to not so much sell, but buy condos. What it does is change the platform through which people do business. For brokers, there may be some compression of fees, but is also lets them fill requirements for more clients." Rosendo Caveiro, C&W director, says, "the concept is wonderful, but I think the mechanics--the search features--need to be better defined." However, multifamily market analyst Jack McCabe of McCabe Research and Consulting, praises the technology aspect of the website, but suggests that for individual investors, "probably a prime target," USCondex may be late. He projects a stall in South Florida condo prices in 2006 and downward pricing pressure, which could drive these investors, "flippers," to other investments. "When it comes to people looking for a place to live, this will be a very useful tool for obtaining information, but I believe they will want to feel, touch and see before they buy."