A bulk buyer made $200,000 in 20 minutes by purchasing 19 bank-owned units in a new Miami project and then immediately retrading the same condo inventory to another investor for a profit, according to a new report from CondoVultures.com.

Even at the retraded price, the ultimate bulk owner still purchased the units at a 60 percent discount compared to the $293 average closed sales price in the project, according to the report based on Miami-Dade County records. 

The Fama Group Inc., with principal Nancy Marquez, purchased 19 units in the new 30-unit Mi Primera Ilusion Villas condominium on Southwest 18th Avenue in Miami for $1.25 million, or $102 per square foot, at 1:25 pm Friday, March 5, according to the report based on Florida Secretary of State records.

Exactly 20 minutes later at 1:45 pm, Marquez's group sold the units for $1.45 million, or $118 per square foot, to another Miami-based entity, Rentdepo LLC with principals Alain Bonvecchio and Karen Stanford Bonvecchio, according to government records.

"The Fama Group earned a 16 percent cash-on-cash return on its money in 20 minutes, minus fees," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "This is another example of well-connected condominium bulk buyers purchasing new product at deep discounts and then immediately retrading the units for a spread.

"Call this condo arbitrage, Miami style."