The $226.6M note was purchased by a bulk condo buyer at a 30% discount
Palm Beach, FL (Vocus/PRWEB) November 24, 2010
The Related Group surrendered Trump Hollywood after a bulk condo buyer acquired the $226.6M note on the oceanfront tower at a 30% discount. 175 units were acquired out of 200 total units, according to Kevin Dickenson with stealthatcondo.com.
The Related Group agreed to a deed-in-lieu of foreclosure with the stipulation that Related Group’s in-house real estate company, Fortune International, will continue to market the property for the buyer.
The buyer, BH III, is a private equity group managed by Charles C. Phelan, Daniel Lebensohn and Gregory M. Freedman and reportedly paid $300 per square foot for the project. “Oceanside Pompano Beach, located just 15 miles north, sold to a bulk condo buyer in December 2009 for $136 per square foot,” according to Dickenson.
This isn’t the first time The Related Group handed over the keys to a tower condo. In July 2009, The Related Group gave back CityPlace South Tower in West Palm Beach after defaulting on a $134.7M note. CityPlace South Tower sold to a bulk condo buyer earlier this month for $63.94M or $179 per square foot. In May 2010, The Related Group handed back the keys to two out of three towers at the massive 1793 unit Icon Brickell development in Miami and in April Bank of America foreclosed on the Oasis tower in Ft. Myers.
A company affiliated with the Related Group bought Oasis back and attempted to auction the remaining 125 condos on November 20th. To entice buyers, the first 40 units to hit the block didn’t have a minimum bid price and more than 300 people registered on-line or attended the auction. Reporters were not allowed to shoot video of the event. The low sale price closed for a $147,500 and the last 12 units closed for $150,000 each. The developer, Jorge Perez, abruptly cancelled the auction before the remaining 85 units hit the block and no public statement was released.
Bulk condo buyers have descended on South Florida to capitalize on developer defaults and foreclosures. Kevin Dickenson is a Palm Beach real estate agent with Prudential Florida Realty and represents bulk condo buyers in South Florida.