Miami’s in with the in-crowd, tastemakers say, debuting on Christie’s International Real Estate’s list of top 10 luxury residential markets.
The real estate arm of the iconic auction house publishes a global research report of trends across the world’s prime real estate markets, tracking spending patterns among wealthy buyers.
And this year for the first time it named Miami as one of the cities where the rich not only play but also stay.
“Miami is on everybody’s radar across the world,” said Ron Shuffield, president and CEO of Esslinger-Wooten-Maxwell Realtors, an affiliate of Christie’s International Real Estate. “We have a lot of people coming here to spend their money and enjoy what we have.”
In naming the choicest markets, Christie’s selection criteria included cities’ gross domestic product; number of billionaire residents; their tally of Fortune 500 company headquarters; performance on S&P/Case-Shiller Home Price indices; position on the AT Kearny Global Cities Index; ranking on Swiss bank UBS’ list of most expensive cities; Globalization and World Cities Research Network rankings; and the presence of a Christie’s affiliate.
Emerging as the most attractive cities for the rich: Dallas, Hong Kong, London, Los Angeles, Miami, New York, Paris, San Francisco and Toronto. Côte d’Azur, also called the French Riviera, even though not a city, also made the list, “added to this elite survey group for being one of Europe’s most highly prized second-home destinations for more than a century.”
“As the only real estate network owned by a fine-art auction house, Christie’s International Real Estate has unparalleled access to the [high-net-worth individuals] around the globe who procure assets such as art, wine, jewelry and, of course, luxury real estate,” said Bonnie Stone Sellers, Christie’s International Real Estate CEO. “Together with the collective knowledge of its 125 affiliated real estate brokerages in 41 countries… Christie’s International Real Estate is uniquely qualified to understand the characteristics and trends associated with the prestige real estate market.”
And observers say Miami has cultivated the cachet to draw these buyers.
Helping its appealing: An emerging cultural offering that now includes the internationally renowned Miami City Ballet, the Miami Symphony Orchestra, major art museums and world-class food, art and cultural festivals.
Add to that plans to draw boaters, coupled with the area’s luxury retail outlets, daily flights to major world centers and a growing financial services sector, and it’s clear Miami allows wealthy homebuyers access to choice recreation and international business centers, Mr. Shuffield said.
“And as trite as it sounds,” he said, “the weather is still a big draw.”
Source: http://www.miamitodaynews.com/2013/11/13/miami-cracks-top-10-luxury-residential-markets/
Written by Samantha Joseph on November 13, 2013
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 condos. Show all posts
Showing posts with label condos. Show all posts
Thursday, November 14, 2013
Tuesday, July 6, 2010
South Florida Foreclosure Filings Drop 49% in Q-2
According to a new report by Condo Vultures, lenders filed 49 percent fewer foreclosure actions against borrowers in the tricounty South Florida region in the second quarter of 2010 compared to a year earlier.
Banks initiated about 14,500 foreclosure actions in Miami-Dade, Broward, and Palm Beach counties between April and June of 2010 compared to about 28,400 foreclosure actions initiated during the same three-month span of 2009, according to the report based on the Condo Vultures.
For the year, South Florida foreclosure filings are down 34 percent to 34,500 in the first six months of 2010 compared to about 52,200 actions in 2009, 37,800 actions in 2008, and 8,000 actions in 2007, according to the report based on Clerk of the Court records in Miami-Dade, Broward, and Palm Beach counties.
"Lenders filed an average of 190 foreclosure actions per calendar day in the first half of 2010," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures LLC. "As high as the current number seems, the pace is down significantly from recent years when a daily average of 288 actions were filed in 2009 and 209 actions in 2008. Prior to the real estate crash, lenders filed fewer than 50 foreclosure actions per calendar day."
Peter Zalewski
Since 2007, lenders have filed more than 240,000 foreclosures actions in the tricounty South Florida region. Lenders normally file a foreclosure action - also known as a Lis Pendens or notice of default - when borrowers fall 90 days behind on their monthly mortgage payments.
At the current pace, South Florida would experience less than 70,000 foreclosure actions in all of 2010. South Florida's foreclosure filings jumped from 33,000 actions in 2007 to 76,000 in 2008 before reaching 97,000 in 2009, according to the Condo Vultures.
In Miami-Dade County, where Aventura, Key Biscayne, and Miami Beach are located, the number of foreclosure filings is down 48 percent to 8,000 in the first half of 2010. In previous years for the same period, the county experienced 15,300 filings in 2009, 10,300 filings in 2008, and 3,700 filings in 2007.
In Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, foreclosure filings are down 33 percent to about 15,700 actions in the first half of 2010 compared to about 23,300 actions in 2009 and 16,700 actions in 2008. Back in 2007, there were about 2,800 foreclosure filings in Broward in the first six months of that year.
In Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, the number of foreclosure actions is down 21 percent to 10,800 in the first half of this year. By comparison, foreclosure actions totaled more than 13,500 in 2009, about 10,800 in 2008, and nearly 1,500 in 2007, according to Condo Vultures.
Economics and new government directives are having a slowing effect on South Florida foreclosures.
At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorney's fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, industry watchers said.
The additional costs and length of time necessary to repossess a property resulted from a variety of reasons, including new legislation and directives requiring lenders to work with borrowers to attempt to modify mortgages in hopes of keeping primary users in their homes. The government directors were prompted by the devastating economic downturn that impacted many borrowers who lost jobs as unemployment rate topped 10 percent and home values dropped dramatically.
Another contributing factor to the decrease in the foreclosure filings is simply the cost involved with repossessing a property compared to completing a short sale, where a borrower unloads a property with a bank's approval at a price below the outstanding loan amount. Lenders have found that once a property is finally repossessed, the bank-owned residence often times sells at the same price as a short sale.
A series of new Florida laws pertaining to condominium units are expected to encourage even more short sales instead of foreclosures.
As of July 2010, lenders are now responsible for paying 12 months - twice as long as previously - of past due condo association fees upon repossessing a property. Under the old legislation, only six months of past due association fees were required to be paid by the lender of a repossessed property.
"The South Florida real estate market is really at a crossroads right now," Zalewski said. "The unknown is whether another wave of foreclosures is coming down the pike given that a number of exotic mortgages are in the process of resetting this year."
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-south-florida-foreclosure-filings-condo-vultures-miami-home-foreclosures-miami-condo-foreclosures-ft-lauderdale-condo-foreclosures-2804.php
Banks initiated about 14,500 foreclosure actions in Miami-Dade, Broward, and Palm Beach counties between April and June of 2010 compared to about 28,400 foreclosure actions initiated during the same three-month span of 2009, according to the report based on the Condo Vultures.
For the year, South Florida foreclosure filings are down 34 percent to 34,500 in the first six months of 2010 compared to about 52,200 actions in 2009, 37,800 actions in 2008, and 8,000 actions in 2007, according to the report based on Clerk of the Court records in Miami-Dade, Broward, and Palm Beach counties.
"Lenders filed an average of 190 foreclosure actions per calendar day in the first half of 2010," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based Condo Vultures LLC. "As high as the current number seems, the pace is down significantly from recent years when a daily average of 288 actions were filed in 2009 and 209 actions in 2008. Prior to the real estate crash, lenders filed fewer than 50 foreclosure actions per calendar day."
Peter Zalewski
Since 2007, lenders have filed more than 240,000 foreclosures actions in the tricounty South Florida region. Lenders normally file a foreclosure action - also known as a Lis Pendens or notice of default - when borrowers fall 90 days behind on their monthly mortgage payments.
At the current pace, South Florida would experience less than 70,000 foreclosure actions in all of 2010. South Florida's foreclosure filings jumped from 33,000 actions in 2007 to 76,000 in 2008 before reaching 97,000 in 2009, according to the Condo Vultures.
In Miami-Dade County, where Aventura, Key Biscayne, and Miami Beach are located, the number of foreclosure filings is down 48 percent to 8,000 in the first half of 2010. In previous years for the same period, the county experienced 15,300 filings in 2009, 10,300 filings in 2008, and 3,700 filings in 2007.
In Broward County, where Fort Lauderdale, Hollywood, and Pompano Beach are located, foreclosure filings are down 33 percent to about 15,700 actions in the first half of 2010 compared to about 23,300 actions in 2009 and 16,700 actions in 2008. Back in 2007, there were about 2,800 foreclosure filings in Broward in the first six months of that year.
In Palm Beach County, where Boca Raton, Delray Beach, and West Palm Beach are located, the number of foreclosure actions is down 21 percent to 10,800 in the first half of this year. By comparison, foreclosure actions totaled more than 13,500 in 2009, about 10,800 in 2008, and nearly 1,500 in 2007, according to Condo Vultures.
Economics and new government directives are having a slowing effect on South Florida foreclosures.
At the start of the housing crash in 2007, lenders estimated the typical foreclosure would take about six months to repossess a property at a cost of about $40,000 in the loss of debt service, damage, court courts, and attorney's fees. By 2009 as the foreclosure filings were spiking, the process extended out to an average of 18 months with an estimated cost of at least $100,000 per repossession, industry watchers said.
The additional costs and length of time necessary to repossess a property resulted from a variety of reasons, including new legislation and directives requiring lenders to work with borrowers to attempt to modify mortgages in hopes of keeping primary users in their homes. The government directors were prompted by the devastating economic downturn that impacted many borrowers who lost jobs as unemployment rate topped 10 percent and home values dropped dramatically.
Another contributing factor to the decrease in the foreclosure filings is simply the cost involved with repossessing a property compared to completing a short sale, where a borrower unloads a property with a bank's approval at a price below the outstanding loan amount. Lenders have found that once a property is finally repossessed, the bank-owned residence often times sells at the same price as a short sale.
A series of new Florida laws pertaining to condominium units are expected to encourage even more short sales instead of foreclosures.
As of July 2010, lenders are now responsible for paying 12 months - twice as long as previously - of past due condo association fees upon repossessing a property. Under the old legislation, only six months of past due association fees were required to be paid by the lender of a repossessed property.
"The South Florida real estate market is really at a crossroads right now," Zalewski said. "The unknown is whether another wave of foreclosures is coming down the pike given that a number of exotic mortgages are in the process of resetting this year."
Source: http://www.realestatechannel.com/us-markets/residential-real-estate-1/real-estate-news-south-florida-foreclosure-filings-condo-vultures-miami-home-foreclosures-miami-condo-foreclosures-ft-lauderdale-condo-foreclosures-2804.php
Thursday, June 3, 2010
Condo Relief Act Shields Bulk Buyers from Liability
MIAMI- On Tuesday, the governor of Florida, Charlie Crist, signed into law the Distressed Condominium Relief Act, which is designed to give assurance to bulk condominium buyers that they won’t be liable for the flaws in a building they did not develop. Theoretically, as bulk buyers are spared this liability, they will buy up more of the excess units built during the boom years. The law will goes into effect on July 1, 2010.
Because the new law takes the element of liability off the table, says Warren Weiser, chairman of Continental Real Estate Companies in Coral Gables, bulk buyers will no longer have to budget for possible litigation.
The new condominium law was written two years ago at the beginning of the real estate crisis, at a time when there were few bulk condominium purchases. But in the last couple of years, the number of these purchases has grown tremendously. According to Condo Vultures, LLC, a real estate brokerage and consulting firm in Miami, in the period from July 1, 2008 to April 30, 2010, there were $976 Million worth of bulk condo sales in South Florida, most of which occurred in 2009, when there were $863 Million worth of these sales.
While there have been a lot of bulk condominium sales in the last year, still, proponents of the new law argue that prices for these units would be higher, if bulk buyers were not worried about being made to pay for the sins of earlier developers.
As the law stands now, says Mark Grant, attorney with Ruden McClosky in Ft. Lauderdale, who helped write the legislation, the way the Division of Florida Condominiums interprets the law, anybody who sells--or leases for five years--more than seven units in a condominium development during a 12-month period, is considered a developer.
The current Florida condominium law hasn’t made a distinction between a “creating developer” and a “successor developer,” even though the Division of Florida Condominium’s regulations do make that distinction, says Grant. “But the courts are not bound to follow the regulations, which are the interpretations of the law by the condominium division,” he says.
Although the law says that developers must give warranties on a building they build, the creating developer doesn’t exist anymore and the bulk buyer is the successor to the developer. Therein lies the rub, and the reason for the new law.
Now that the law has been signed, condominium prices should rise, says Grant, because bulk buyers will no longer insist on a discount for taking on another developer’s risks. Higher prices serve several purposes, he says. First and foremost, they help protect the investments of those who bought into a condominium early, because they are the ones who paid the highest prices, says Grant.
Currently, says Grant, most of the bulk condominium buyers are foreigners who don’t need financing. This new law will, theoretically, have the effect of encouraging more sales and, as more units are sold, that makes the remaining units financeable by Fannie Mae, because the agency won’t approve loans in buildings where more than 15% of the units are in default and not paying assessments. In order words, this new law could end up encouraging more Americans, who might be eligible for loans backed by Fannie Mae, to buy condominiums.
There are a lot of benefits in this law for the residents/owners of the condominium, not just the bulk buyer. If there is an absentee owner collecting rent and not paying assessments, this new law allows the association to collect the rent directly from the tenant or tell the tenant to pay the rent to the association, rather than the landlord, says Weiser.
Before this bill passed, says Grant, lenders who foreclosed on units only had to pay the last six months of assessments before they took title. “If it takes two years to foreclosure, those lenders had to pay only for six months, but the new law will expand that period to 12 months,” says Grant.
The way things stand now, says Grant, many people who are living in the condominium are paying their assessments. But developers who have gone bust aren’t paying assessments for the units they still own. Additionally, the banks which have started to foreclose, but have not taken title to condominiums yet, are not paying, so the building suffers. The new law will help make it easier for condominium associations to collect what they are owed. In short, this law may help to heal once-fractured condominiums.
Source: http://www.globest.com/news/1675_1675/florida/300125-1.html
By Hortense Leon
Because the new law takes the element of liability off the table, says Warren Weiser, chairman of Continental Real Estate Companies in Coral Gables, bulk buyers will no longer have to budget for possible litigation.
The new condominium law was written two years ago at the beginning of the real estate crisis, at a time when there were few bulk condominium purchases. But in the last couple of years, the number of these purchases has grown tremendously. According to Condo Vultures, LLC, a real estate brokerage and consulting firm in Miami, in the period from July 1, 2008 to April 30, 2010, there were $976 Million worth of bulk condo sales in South Florida, most of which occurred in 2009, when there were $863 Million worth of these sales.
While there have been a lot of bulk condominium sales in the last year, still, proponents of the new law argue that prices for these units would be higher, if bulk buyers were not worried about being made to pay for the sins of earlier developers.
As the law stands now, says Mark Grant, attorney with Ruden McClosky in Ft. Lauderdale, who helped write the legislation, the way the Division of Florida Condominiums interprets the law, anybody who sells--or leases for five years--more than seven units in a condominium development during a 12-month period, is considered a developer.
The current Florida condominium law hasn’t made a distinction between a “creating developer” and a “successor developer,” even though the Division of Florida Condominium’s regulations do make that distinction, says Grant. “But the courts are not bound to follow the regulations, which are the interpretations of the law by the condominium division,” he says.
Although the law says that developers must give warranties on a building they build, the creating developer doesn’t exist anymore and the bulk buyer is the successor to the developer. Therein lies the rub, and the reason for the new law.
Now that the law has been signed, condominium prices should rise, says Grant, because bulk buyers will no longer insist on a discount for taking on another developer’s risks. Higher prices serve several purposes, he says. First and foremost, they help protect the investments of those who bought into a condominium early, because they are the ones who paid the highest prices, says Grant.
Currently, says Grant, most of the bulk condominium buyers are foreigners who don’t need financing. This new law will, theoretically, have the effect of encouraging more sales and, as more units are sold, that makes the remaining units financeable by Fannie Mae, because the agency won’t approve loans in buildings where more than 15% of the units are in default and not paying assessments. In order words, this new law could end up encouraging more Americans, who might be eligible for loans backed by Fannie Mae, to buy condominiums.
There are a lot of benefits in this law for the residents/owners of the condominium, not just the bulk buyer. If there is an absentee owner collecting rent and not paying assessments, this new law allows the association to collect the rent directly from the tenant or tell the tenant to pay the rent to the association, rather than the landlord, says Weiser.
Before this bill passed, says Grant, lenders who foreclosed on units only had to pay the last six months of assessments before they took title. “If it takes two years to foreclosure, those lenders had to pay only for six months, but the new law will expand that period to 12 months,” says Grant.
The way things stand now, says Grant, many people who are living in the condominium are paying their assessments. But developers who have gone bust aren’t paying assessments for the units they still own. Additionally, the banks which have started to foreclose, but have not taken title to condominiums yet, are not paying, so the building suffers. The new law will help make it easier for condominium associations to collect what they are owed. In short, this law may help to heal once-fractured condominiums.
Source: http://www.globest.com/news/1675_1675/florida/300125-1.html
By Hortense Leon
Monday, May 17, 2010
Cash still king in condo buys
Cash continues to be king when it comes to buying condos.
A new report by Condo Vultures LLC finds that buyers paid cash for nearly 600 units in 29 projects in the greater downtown Miami area from January through March. Fewer than 120 units in 19 projects were financed, according to the Bal Harbour-based real estate consultancy.
"Even though the U.S. government is encouraging lenders to once again finance condo purchases, the results have not been impressive in South Florida," said Peter Zalewski, a principal with Condo Vultures. "Many lenders claim to be willing to consider writing loans for buyers of condominiums, but the end results simply do not support that.”
The report found buyers obtained nearly three-dozen mortgages – the greatest number in the downtown market – in Icon Brickell. Earlier this month, about half of the 1,800 units in the three-tower complex were handed back to the lender.
The next-highest concentration of financed mortgages was at 500 Brickell, across the street from Icon Brickell, according to the report.
The Ivy condominium, on the north bank of the Miami River, rounded out the top three.
Fannie Mae has been working to easing certification guidelines and has created a special team to review applications for new Florida projects seeking approval.
Fannie Mae approved 70 Florida condominiums in the first four months of the year, after approving 146 projects in the state in 2009. That’s significantly better than in 2008 when no Florida condo projects were granted Fannie Mae approval, according to the report.
Source: http://www.bizjournals.com/southflorida/stories/2010/05/17/daily17.html
A new report by Condo Vultures LLC finds that buyers paid cash for nearly 600 units in 29 projects in the greater downtown Miami area from January through March. Fewer than 120 units in 19 projects were financed, according to the Bal Harbour-based real estate consultancy.
"Even though the U.S. government is encouraging lenders to once again finance condo purchases, the results have not been impressive in South Florida," said Peter Zalewski, a principal with Condo Vultures. "Many lenders claim to be willing to consider writing loans for buyers of condominiums, but the end results simply do not support that.”
The report found buyers obtained nearly three-dozen mortgages – the greatest number in the downtown market – in Icon Brickell. Earlier this month, about half of the 1,800 units in the three-tower complex were handed back to the lender.
The next-highest concentration of financed mortgages was at 500 Brickell, across the street from Icon Brickell, according to the report.
The Ivy condominium, on the north bank of the Miami River, rounded out the top three.
Fannie Mae has been working to easing certification guidelines and has created a special team to review applications for new Florida projects seeking approval.
Fannie Mae approved 70 Florida condominiums in the first four months of the year, after approving 146 projects in the state in 2009. That’s significantly better than in 2008 when no Florida condo projects were granted Fannie Mae approval, according to the report.
Source: http://www.bizjournals.com/southflorida/stories/2010/05/17/daily17.html
Thursday, May 13, 2010
US home foreclosures drop first time in four years
US home foreclosures have dropped for the first time in four years as the economy recovered from a brutal recession triggered by a mortgage meltdown, a real estate data company said Thursday.
Foreclosure filings -- default notices, auctions and bank repossessions -- were reported on 333,837 properties in April, a nine percent decrease from the previous month and a two percent decrease from last year, RealtyTrac said.
This was the first year-over-year drop since the company started tracking annual foreclosure rates in January 2006, nearly two years before the US plunged into recession resulting from a home mortgage crisis.
"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau -- but at a very high level that will not drop off in the near future," said James Saccacio, RealtyTrac's chief executive.
"April was the first month in the history of our report with an annual decrease in US foreclosure activity. Secondly, bank repossessions hit a record monthly high for the report even while default notices dropped substantially on a monthly and annual basis," he said.
The company expected a similar pattern for most of this year.
Some 92,432 properties were repossessed by lenders in April -- an increase of one percent from the previous month and 45 percent from 2009.
Bank repossessions were less than one percent above their previous peak of 92,182 in December 2009.
Nevada, Arizona, Florida were hit hard by the mortgage crisis.
Nevada posted the nation's highest state foreclosure rate for the 40th straight month, with one in every 69 housing units receiving a foreclosure filing in April -- more than five times the national average.
Source: http://www.france24.com/en/20100513-us-home-foreclosures-drop-first-time-four-years
Foreclosure filings -- default notices, auctions and bank repossessions -- were reported on 333,837 properties in April, a nine percent decrease from the previous month and a two percent decrease from last year, RealtyTrac said.
This was the first year-over-year drop since the company started tracking annual foreclosure rates in January 2006, nearly two years before the US plunged into recession resulting from a home mortgage crisis.
"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau -- but at a very high level that will not drop off in the near future," said James Saccacio, RealtyTrac's chief executive.
"April was the first month in the history of our report with an annual decrease in US foreclosure activity. Secondly, bank repossessions hit a record monthly high for the report even while default notices dropped substantially on a monthly and annual basis," he said.
The company expected a similar pattern for most of this year.
Some 92,432 properties were repossessed by lenders in April -- an increase of one percent from the previous month and 45 percent from 2009.
Bank repossessions were less than one percent above their previous peak of 92,182 in December 2009.
Nevada, Arizona, Florida were hit hard by the mortgage crisis.
Nevada posted the nation's highest state foreclosure rate for the 40th straight month, with one in every 69 housing units receiving a foreclosure filing in April -- more than five times the national average.
Source: http://www.france24.com/en/20100513-us-home-foreclosures-drop-first-time-four-years
Wednesday, May 12, 2010
S. Florida Real Estate Trying To Come Back
Aided by low interest rates and federal tax credits, sales of single-family homes and condominiums in South Florida roared during the first three months of 2010.
In Miami-Dade County, sales of condos jumped by 46 percent in the first quarter to 1,920 when compared to the same period of time in 2009. However, median home prices fell almost 10 percent to $136,100 according to numbers from Florida Realtors.
Real estate agents told CBS4 news partner the Miami Herald that buyers who were on the fence before are now signing contracts and renters are deciding to own their own place. Buyers had until April 30 to sign a contract to purchase a primary residence and until June 30 to close on it to qualify federal tax credits.
According to the Herald, fewer than 40,000 condominiums and town houses are now for resale in South Florida. Resale units in South Florida have dropped by 23 percent compared to May 2009.
Source: http://cbs4.com/CBS4yourmoney/real.estate.improvement.2.1689894.html
In Miami-Dade County, sales of condos jumped by 46 percent in the first quarter to 1,920 when compared to the same period of time in 2009. However, median home prices fell almost 10 percent to $136,100 according to numbers from Florida Realtors.
Real estate agents told CBS4 news partner the Miami Herald that buyers who were on the fence before are now signing contracts and renters are deciding to own their own place. Buyers had until April 30 to sign a contract to purchase a primary residence and until June 30 to close on it to qualify federal tax credits.
According to the Herald, fewer than 40,000 condominiums and town houses are now for resale in South Florida. Resale units in South Florida have dropped by 23 percent compared to May 2009.
Source: http://cbs4.com/CBS4yourmoney/real.estate.improvement.2.1689894.html
Tuesday, September 8, 2009
Caribbean Miami Beach gets new owner
A New York City investor is the new owner of the Caribbean Miami Beach condominium.
The buyer, an affiliate of New York City-based Melohn Properties, bought the mortgage from ailing Corus Bank.
The Chicago-based bank (NASDAQ: CORS) had given Caribbean Group Owners a $127.7 million mortgage to renovate the hotel into a 103-unit oceanfront condominium at 3737 Collins Ave., in Miami Beach. The developer, a partnership between Christa Development and Bluerock Real Estate, had sold just 13 units since July 2008.
Corus Bank, which 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 said that Corus Bank had previously offered the note for sale at between $50 million and $55 million.
Christa Development VP 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,” said Christa, who noted that no foreclosure lawsuit was filed.
Marcela Catapano Criscito, a real estate agent hired by the owner of the Caribbean Miami Beach to sell units, concurred.
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.
Condo VulturesCEO 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, he said. He added that 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.
For more information check the website http://www.buymiami.net/
“The owner will flip these units immediately,” Zalewski said. “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, said 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 said.
“The Caribbean was the most desirable bulk play in South Beach because so few projects there were in distress,” Zalewski said.
A Melohn Properties official was not immediately available for comment.
For more information check the website http://www.buymiami.net/
Source: http://www.bizjournals.com/southflorida/stories/2009/08/31/daily66.html
Brian Bandell
Labels: condominiums, houses, miami beach, south beach
The buyer, an affiliate of New York City-based Melohn Properties, bought the mortgage from ailing Corus Bank.
The Chicago-based bank (NASDAQ: CORS) had given Caribbean Group Owners a $127.7 million mortgage to renovate the hotel into a 103-unit oceanfront condominium at 3737 Collins Ave., in Miami Beach. The developer, a partnership between Christa Development and Bluerock Real Estate, had sold just 13 units since July 2008.
Corus Bank, which 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 said that Corus Bank had previously offered the note for sale at between $50 million and $55 million.
Christa Development VP 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,” said Christa, who noted that no foreclosure lawsuit was filed.
Marcela Catapano Criscito, a real estate agent hired by the owner of the Caribbean Miami Beach to sell units, concurred.
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.
Condo VulturesCEO 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, he said. He added that 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.
For more information check the website http://www.buymiami.net/
“The owner will flip these units immediately,” Zalewski said. “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, said 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 said.
“The Caribbean was the most desirable bulk play in South Beach because so few projects there were in distress,” Zalewski said.
A Melohn Properties official was not immediately available for comment.
For more information check the website http://www.buymiami.net/
Source: http://www.bizjournals.com/southflorida/stories/2009/08/31/daily66.html
Brian Bandell
Labels: condominiums, houses, miami beach, south beach
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