Corus Bank's Trophy Caribbean Miami Beach Condo Sold After Owner Returns Keys to Lender

(MIAMI BEACH, FL) -- The first luxury condominium community on Miami Beach's esteemed Millionaires Row has fallen.The one-year-old, 19-story, 103-unit Caribbean Miami Beach at 3737 Collins Ave. today is owned by an affiliate of low-key, privately held, New York City-based Melohn Properties. The Melohn family has been involved in commercial and residential real estate in New York City for 60 years.

Caribbean Miami Beach condosThe Melohn affiliate became the owner of the striking oceanfront condo project by purchasing a delinquent $127 million mortgage note from Chicago-based Corus Bank (NASDAQ: CORS).Industry watchers in a position to know say the note was sold for about $50 million after the Federal Deposit Insurance Corp. approved the sale. No foreclosure lawsuit was filed in the transaction.(Please see related Real Estate Channel article, "Big Name Condo Investors Await Corus Bank's Pending Seizure by FDIC, Sept. 4, 2009")Corus previously had given the developer, Caribbean Group Owners, a $127.7 million mortgage to renovate the hotel.

The developer, a partnership between Christa Development and Bluerock Real Estate, had sold just 13 units since July 2008.Corus Bank, which itself faces a risk of failure under the weight of delinquent condo construction loans, sold its mortgage on Aug. 19 to 3737 Caribbean Partners.

A source familiar with the deal told South Florida Business Journal that Corus had previously offered the note for sale at between $50 million and $55 million.Christa Development vice president Frank Christa said the developers have voluntarily turned over the Caribbean Miami Beach to the new lender."The new lender is in charge of it," says Christa. Bal Harbour, FL-base Condo Vultures CEO Peter Zalewski called the Caribbean Miami Beach "the crown jewel of Corus Bank's loan portfolio. "With its strong location and quality design, it can probably have its units sell for between $450 and $550 a square foot."The 13 sales that were closed at Caribbean Miami Beach by the developer went for an average of $848 per square foot.

Those sales generated $21.4 million in revenue."The owner will flip these units immediately," Zalewski predicts. "They probably have the ability to burn through most of them during the tourism season."Zalewski, who has looked at the project on behalf of potential buyers, says Corus Bank could not have made this deal without the Federal Deposit Insurance Corp. signing off on it. At least six groups were competing to take it over, he says."The Caribbean was the most desirable bulk play in South Beach because so few projects there were in distress," Zalewski notes.

Miami Beach real estate agent Marcela Catapano Criscito was hired by the new owner of the Caribbean Miami Beach to sell the units.The Caribbean Miami Beach was designed by architect Kobi Karp, with interiors designed by Christopher Ciccone, the brother of pop star Madonna. It has a heated infinity-edge swimming pool, spa, sun deck, billiard lounge, fitness center, wine vault, cigar humidor and 24-hour concierge service.Units were priced from $500,000 to $8 million. They are divided between the renovated six-story building, with 35 units, and a new 19-story tower, with 68 units.


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Source: http://www.realestatechannel.com
Author: Alex Finkelstein