A New York-based real estate investment firm has won a bank auction and court approval to buy the debt of downtown Miami's Everglades on the Bay condominium towers.
Rockwood Capital paid about $142 million for the note, according to South Florida real estate consultancy Condo Vultures. But the sale of the 849-unit project on Biscayne Boulevard did not go smoothly, with the developer, another bidder and the bank holding the debt battling over terms.
Developer Cabi Downtown LLC -- which faced a 2009 foreclosure suit by Bank of America on a $209 million construction loan -- claimed in U.S. Bankruptcy Court this week that Rockwood went behind its back to cut a deal with the lender, after pledging to deal directly with the developer. Elias Cababie, managing member of Cabi, claimed he had secured a higher bid from a San Antonio-based private investment group, court documents show.
Cabi had been juggling negotiations with Rockwood and San Antonio-based Lynd Company this summer, taking representatives from both groups to see the property's twin 49-story towers.
According to Cababie's sworn statement, sometime in July, Lynd put in an offer for the note, and Cabi solicited Rockwood to make a counteroffer. Rockwood responded by asking for more information about the property and then abruptly cut communication with Cabi, Cababie claims.
Rockwood execs tell a different story: ``Before we had completed our due diligence, [Cabi] informed Rockwood that it intended to accept a different entity's proposal and to end negotiations with Rockwood,'' said Dwight ``Arne'' Arnesen, Rockwood's senior managing director of portfolio and asset management, in a sworn statement. Arnesen also said Rockwood had been willing to pay more than Lynd's initial offer.
Attorneys for Cabi and Bank of America did not return calls for comment. The purchase may be the target of future litigation from Cabi as well as Lynd, who lost the bid, said Peter Zalewski, principal at Condo Vultures.
One motivation for the drama: The building offered what may be the last sizable bulk purchase of new condos in downtown Miami, where developers have built more than 20,000 units in the last seven years.
Developers have sold just over 175 units at Everglades, and there are hundreds of renters in the building, which was completed about two years ago.
The purchase price amounted to at least $191 per square foot, Zalewski said. ``I think Rockwood paid too much,'' he said. ``But with time, that number will end up looking better and better.''
Source: http://www.miamiherald.com/2010/10/29/1897264/firm-can-buy-debt-of-downtown.html
BY TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
Showing posts with label all-cash buyer. Show all posts
Showing posts with label all-cash buyer. Show all posts
Friday, October 29, 2010
Monday, October 4, 2010
Interest Rates And Property Prices Are Going Down In Miami
Miami, Fl – When interest rates and property prices drop many renters start to wonder - ”will be this the right time to become a homeowner instead of a renter? ” This is the biggest question for many residents of Miami in these days, and since property prices and interest rates went down, in many cases buying can be a better choice.
The prices of properties in South Florida are being affected by the big number of short sales and foreclosures; making homes more affordable for investors and home buyers.
These days, international investors are putting their eyes in Miami as one of the best real estate investment places in the world; many of them are using cash instead of financing to accelerate the closing process.
So this might be a big opportunity for Miami renters to become homeowners. The price of properties and the interest in the banks are at their lowest point in many years
Source: http://www.webnewswire.com/node/594393
The prices of properties in South Florida are being affected by the big number of short sales and foreclosures; making homes more affordable for investors and home buyers.
These days, international investors are putting their eyes in Miami as one of the best real estate investment places in the world; many of them are using cash instead of financing to accelerate the closing process.
So this might be a big opportunity for Miami renters to become homeowners. The price of properties and the interest in the banks are at their lowest point in many years
Source: http://www.webnewswire.com/node/594393
Thursday, September 16, 2010
Buyers Cashing In On Miami Real Estate Market
It's a problem for thousands of families in South Florida and around the country: Is it better to rent or buy? A national research service now says the answer in Miami is getting a lot easier.
Trulia, a national real estate service, found rock bottom pricing and record low interest rates are teaming up for a one-two punch that's giving the Miami market one of the top ratings in the country for communities where it's now cheaper to buy than rent.
Trulia listed Miami number 3 nationally behind only Arlington Texas and Minneapolis, for reduced home prices.
But local real estate experts warned property taxes and insurance costs are still major considerations when deciding whether renting or owning around South Florida is the best bet.
"If you're going to be here long term for at least 4-5 years, buying may be a better deal for you," warned Miami Realtor Christopher Zoller. "But from a cash only standpoint, if you're going to be here for less time you're better off renting right now."
While price cuts may be growing nationally, Trulia found the Miami market's now well below the national average for close-out pricing.
The highest number of "reduced listings" is in Minneapolis, where almost half of the current listings are considered "reduced," to move them in a stagnant market.
Trulia found the national average to be 26%. Miami's now down to 18%; and that gives us a ranking of 49 out of the top 50 markets nationally for the fewest number of "Close-Outs."
"We are not as bad as we used to be. Some prices are now starting to come back up," Zoller said.
The biggest improvements in South Florida have come from high-end, single family homes which started to see some gains earlier in the summer. But much of the new Miami market strength is based mostly on foreign investors.
The biggest challenge for the housing market remains finding qualified buyers with good enough credit, and high enough incomes, to take advantage of the deals that are now on the market.
Because of continuing foreclosures, there are still expected to be more homes on the market than qualified buyers. That means selling prices may not see much more growth for a while; and that ultimately means more good news for bargain hunters.
Source: http://cbs4.com/CBS4yourmoney/rent.buy.homes.2.1914823.html
Trulia, a national real estate service, found rock bottom pricing and record low interest rates are teaming up for a one-two punch that's giving the Miami market one of the top ratings in the country for communities where it's now cheaper to buy than rent.
Trulia listed Miami number 3 nationally behind only Arlington Texas and Minneapolis, for reduced home prices.
But local real estate experts warned property taxes and insurance costs are still major considerations when deciding whether renting or owning around South Florida is the best bet.
"If you're going to be here long term for at least 4-5 years, buying may be a better deal for you," warned Miami Realtor Christopher Zoller. "But from a cash only standpoint, if you're going to be here for less time you're better off renting right now."
While price cuts may be growing nationally, Trulia found the Miami market's now well below the national average for close-out pricing.
The highest number of "reduced listings" is in Minneapolis, where almost half of the current listings are considered "reduced," to move them in a stagnant market.
Trulia found the national average to be 26%. Miami's now down to 18%; and that gives us a ranking of 49 out of the top 50 markets nationally for the fewest number of "Close-Outs."
"We are not as bad as we used to be. Some prices are now starting to come back up," Zoller said.
The biggest improvements in South Florida have come from high-end, single family homes which started to see some gains earlier in the summer. But much of the new Miami market strength is based mostly on foreign investors.
The biggest challenge for the housing market remains finding qualified buyers with good enough credit, and high enough incomes, to take advantage of the deals that are now on the market.
Because of continuing foreclosures, there are still expected to be more homes on the market than qualified buyers. That means selling prices may not see much more growth for a while; and that ultimately means more good news for bargain hunters.
Source: http://cbs4.com/CBS4yourmoney/rent.buy.homes.2.1914823.html
Thursday, September 9, 2010
Bulk Buying Real Estate
If you're one that loves a "steal of a deal," South Florida's real estate market is ready to love you back.
But, the big catch--and in these economic times, it's a Big Catch--you've got to have all cash. But if you do, you can buy a $50,000 condo in Miami Beach, just 2 blocks from the sand and breaking waves. Keep in mind, this is a condo that previously had sold for $172,000. And, in Miami-Dade, Broward and Palm Beach Counties, there are 6000 of these foreclosed or distressed properties on the market.
"This is pure capitalism. If you don't have all cash, you stand no chance, you're going to get crushed," says Peeter Zalewski of CondoVltures.com.
South Florida, and Miami in particular, represent everything that went wrong in the pre-market crash years prior to 2007. From the 1960s to 2002, Zalewski says 11,500 condos were built. From 2002 to 2007, that inventory tripled, to 34,000 condos. And now that the real estate market continues to sputter, there are a glut of condominiums in the overbuilt cities of Miami, Atlanta, Las Vegas and San Diego, where bulk deals are available, at prices lower that what the developer paid to build.
Angel and Santiago Herrera, of Venezuela, recently spent $7 million to buy 39 downtown Miami units. They quickly flipped 17 for a profit and are renting the rest for the next 3 to 5 years when they then plan to sell each for double what they paid.
"The market has never been so down, so when you're so down, the only place you can go is up," says Angel.
Most of the bulk buying that's been happening is being done by foreign investors, who are seeing great investment opportunity.
And most importantly, they're buying with 100% cash.
Source: http://liveshots.blogs.foxnews.com/2010/09/08/bulk-buying-real-estate/
by: Phil Keating
But, the big catch--and in these economic times, it's a Big Catch--you've got to have all cash. But if you do, you can buy a $50,000 condo in Miami Beach, just 2 blocks from the sand and breaking waves. Keep in mind, this is a condo that previously had sold for $172,000. And, in Miami-Dade, Broward and Palm Beach Counties, there are 6000 of these foreclosed or distressed properties on the market.
"This is pure capitalism. If you don't have all cash, you stand no chance, you're going to get crushed," says Peeter Zalewski of CondoVltures.com.
South Florida, and Miami in particular, represent everything that went wrong in the pre-market crash years prior to 2007. From the 1960s to 2002, Zalewski says 11,500 condos were built. From 2002 to 2007, that inventory tripled, to 34,000 condos. And now that the real estate market continues to sputter, there are a glut of condominiums in the overbuilt cities of Miami, Atlanta, Las Vegas and San Diego, where bulk deals are available, at prices lower that what the developer paid to build.
Angel and Santiago Herrera, of Venezuela, recently spent $7 million to buy 39 downtown Miami units. They quickly flipped 17 for a profit and are renting the rest for the next 3 to 5 years when they then plan to sell each for double what they paid.
"The market has never been so down, so when you're so down, the only place you can go is up," says Angel.
Most of the bulk buying that's been happening is being done by foreign investors, who are seeing great investment opportunity.
And most importantly, they're buying with 100% cash.
Source: http://liveshots.blogs.foxnews.com/2010/09/08/bulk-buying-real-estate/
by: Phil Keating
Friday, July 30, 2010
Miami Beach Real Estate Market Awash in Foreign Cash Buyers
Sure, $2 million is a drop in the bucket for many of the buyers around Miami Beach's swank North Bay Road area where homes begin in this price range. But for these buyers, many of whom are visiting wealthy foreigners, the cash is burning a hole in their pocket. The traditional bank financing, down payment and mortgage are not part of their purchasing process.
"A cash buyer may be someone who is borrowing from somewhere on their own, they may have the money in the bank, they may own the bank, but their purchase is not contingent on a finance deal," Esther Percal, senior vice president of Esslinger Wooten Maxwell in Miami Beach, told HousingWatch.
Percal says 60 percent of the cash buyers she deals with hail from Europe and several South American countries. Her most recent was an Argentinian family whose unfortunate family incident has prompted them to make a move to the states and they chose Miami Beach for putting down roots. There's also the Brazilian businessman who does business in Tampa and Jacksonville and visits so often he decided to buy here. "For him, a $2 million purchase was a no-brainer and a $6 million one was a serious consideration," she said. There are also Venezuelan cash buyers, but not at these price ranges.
Europeans are the most prevalent cash buyers, and they're buying with a purpose. Many of them have been wanting to build credit here and when they plan to do business in the United States they want to establish a line of credit, perhaps even attain a VISA. They've got the cash and their own way of conducting business which oftentimes is not contingent on financing.
One prime example of such a buyer is a French businessman who Percal recently closed a deal for. Although he had the cash for his purchase, he still sought financing from the bank. He was financing through HSBC, known as the world's local bank, and was astounded at how lax business practices were in the U.S. He had a personal deadline to meet, but with the deal taking a total of two weeks, that did not fit with his schedule. He was surprised how long the surveys took and could not comprehend why the appraisals could not be done jointly. His frustration was so great, he called in a personal friend, the bank's president and asked him to lean on the folks to speed up the process.
"He personally complained to me and commented that his transaction's lengthy process was probably why U.S. banks are all in trouble, because they are slow and disorganized," Percal said.
This situation is actually very commonplace in this market where banks are being overly cautious. They are purposely appraising homes below value for example, a $1 million home is being appraised at $500,000 so non-cash buyers actually need much more of a down payment. In the luxury market, 10 to 20 percent for a down payment just doesn't cut it.
Percal says, "Cash is king. It has been a long time since most of us in luxury real estate have had to deal with financing and, frankly, cash buying relieves stress and alleviates red tape. This has been the case for the past two years."
There's optimism, though, that the market will bounce back, and brokers still say -- not surprisingly -- that real estate is still the most sound investment.
Source: http://www.housingwatch.com/2010/07/29/miami-beach-real-estate-market-awash-in-foreign-cash-buyers/
By Josie Gulliksen
"A cash buyer may be someone who is borrowing from somewhere on their own, they may have the money in the bank, they may own the bank, but their purchase is not contingent on a finance deal," Esther Percal, senior vice president of Esslinger Wooten Maxwell in Miami Beach, told HousingWatch.
Percal says 60 percent of the cash buyers she deals with hail from Europe and several South American countries. Her most recent was an Argentinian family whose unfortunate family incident has prompted them to make a move to the states and they chose Miami Beach for putting down roots. There's also the Brazilian businessman who does business in Tampa and Jacksonville and visits so often he decided to buy here. "For him, a $2 million purchase was a no-brainer and a $6 million one was a serious consideration," she said. There are also Venezuelan cash buyers, but not at these price ranges.
Europeans are the most prevalent cash buyers, and they're buying with a purpose. Many of them have been wanting to build credit here and when they plan to do business in the United States they want to establish a line of credit, perhaps even attain a VISA. They've got the cash and their own way of conducting business which oftentimes is not contingent on financing.
One prime example of such a buyer is a French businessman who Percal recently closed a deal for. Although he had the cash for his purchase, he still sought financing from the bank. He was financing through HSBC, known as the world's local bank, and was astounded at how lax business practices were in the U.S. He had a personal deadline to meet, but with the deal taking a total of two weeks, that did not fit with his schedule. He was surprised how long the surveys took and could not comprehend why the appraisals could not be done jointly. His frustration was so great, he called in a personal friend, the bank's president and asked him to lean on the folks to speed up the process.
"He personally complained to me and commented that his transaction's lengthy process was probably why U.S. banks are all in trouble, because they are slow and disorganized," Percal said.
This situation is actually very commonplace in this market where banks are being overly cautious. They are purposely appraising homes below value for example, a $1 million home is being appraised at $500,000 so non-cash buyers actually need much more of a down payment. In the luxury market, 10 to 20 percent for a down payment just doesn't cut it.
Percal says, "Cash is king. It has been a long time since most of us in luxury real estate have had to deal with financing and, frankly, cash buying relieves stress and alleviates red tape. This has been the case for the past two years."
There's optimism, though, that the market will bounce back, and brokers still say -- not surprisingly -- that real estate is still the most sound investment.
Source: http://www.housingwatch.com/2010/07/29/miami-beach-real-estate-market-awash-in-foreign-cash-buyers/
By Josie Gulliksen
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