Long Beach residents who were eager to buy a condo in Tacoma will have to wait another month or so to see if that dream comes true.
The city’s real estate board on Thursday approved the purchase of more than 2,100 condominiums, with an average price of $1.6 million, for a total of more that $2.5 billion.
A real estate developer said the new units will add a level of affordability to Tacoma, which has the largest concentration of condos in the state.
Tacoma is in the midst of a condo boom, and the city’s condominium building boom is set to accelerate.
“This is a historic time in the condo market,” said Chris Moll, executive director of the Tualatin Association of Realtors.
“It’s really the beginning of a period that will really make the condo development process a little more attractive.”
Moll said the development of new condos is the first phase of a trend that will include more than 20,000 condominium units in Tacoma, with the number expected to increase further as more buyers and sellers sign on.
The Tualatins approved the $1 million condo purchase on the recommendation of the city Planning Commission.
The city’s Housing and Urban Development Department, which oversees the condominium program, will oversee the development.
The condo sales represent an increase from the nearly 20,500 units the city bought in 2015, but still far below the 10,000 condo units approved in 2009.
Moll predicted that the new condo sales will result in about 30 percent more condo units than the number of condos bought in 2009, but he also predicted the city could see a 30 percent increase in condos sold.
The new condos will be built at a new site in the city, located between Interstate 5 and I-5 Expressway.
They are expected to be completed in 2023.
Molls said he believes the city is on track to be able to meet the demand for condominium buildings in Tacoma by 2023, but that there are some key issues to be worked out, including the amount of space needed for a condo building and the design of the building.
The project is the second phase of an effort to increase the number and density of condominium developments in Tacoma.
In February, the city approved the construction of 6,500 condominium housing units, but only 7,500 of them were affordable.
That number was cut by more than 50 percent after some condo owners sued to overturn the city plan to build more affordable housing.
The council is scheduled to discuss the new condominium sales at its meeting on Friday.