Wednesday, May 26, 2010
MIAMI, FL--The long anticipated $133 million foreclosure auction of the luxury Royal Palm Oceanfront Resort (top left photo) on South Beach planned for 11 am Thursday has been abruptly cancelled just days before going up for sale to the highest bidder, according to a new report from CondoVultures.com.
A Miami-Dade Court judge signed an order on Monday staying the absolute foreclosure auction until further notice.
The auction date of May 27 was originally scheduled back in February when a final judgment was entered in favor of Wachovia Bank, which is acting as the master servicer for the debt, according to the report based on court records.
"For the court to provide a stay at the 11th hour indicates that a deal could be in the works," said Peter Zalewski, (lower right photo) a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.
"As unique as the Royal Palm property is, the lender's representative obviously realizes that only so many groups have the ability and the courage to spend $133 million - or about $382 per square foot - in a foreclosure auction that must be funded all-cash on the day of the bidding. The lender's situation is not helped by the dismal U.S. economy and the plummeting Euro."
Located immediately south of the Loews Miami Beach Hotel, (middle right photo) the Royal Palm resort at 1545 Collins Ave. features two swimming pools, a gym, and 100 parking spaces.
The final judgment calls for the lender to be entitled to $108.4 million in principal, $19.4 million in interest, and $5.4 million in late charges plus attorneys fees. An additional $15 million default judgment in favor of the lender has also been imposed by the court, according to the order.
The property had an assessed value of $68.9 million, or $198 per square foot, in 2009, down from $79.4 million, or $228 per square foot, in 2008, according to Miami-Dade County's Property Appraiser.
A loan for $112.8 million was used to finance the acquisition and renovations to upgrade the hotel into a luxury condo-hotel that could command top dollar.
Pricing on individual units was to start at more than $1,200 per square foot, according to marketing material still available on the Internet.
It is unclear why the Royal Palm condo-hotel conversion was not successful as the South Florida real estate market did not peak until the fourth quarter of 2005. South Florida prices ultimately did not start to decrease until 2007.
Even in today's dismal market the new W South Beach Residences (middle left photo) condo-hotel located seven blocks north of the Royal Palm project sold 11 units in the first quarter of 2010 for an average of nearly $1,650 per square foot, according to the Condo Vultures® Official Condo Buyers Guide To South Beach™.
In a series of unrelated matters to the Royal Palm, Falor, dubbed the "condo-hotel king of South Florida," was accused in September 2009 by the Securities and Exchange Commission of "improperly pocketing about $5 million from investors in failed South Beach and Chicago Ventures," according to the Miami Herald.
Mitchell, the "low-profile money man behind the Royal Palm acquisition," was indicted in May 2010 on "federal bank fraud charges" related to a failed Georgia bank, according to the Miami Herald.
Contact: Peter Zalewski, Condo Vultures®, 800-750-0517 or by email at firstname.lastname@example.org
THOUSAND OAKS, CA – MAY 26, 2010 – In conjunction with NewMark Merrill Companies, Burlington Coat Factory today announced plans to open an 85,000 square foot location in the space formerly occupied by Mervyn’s in Janss Marketplace in Thousand Oaks.
“We are excited to welcome such a dynamic retailer to Janss Marketplace," said Sandy Sigal, (top left photo) CEO and President of NewMark Merrill Companies.
"When Mervyn’s left the center we were looking for an upgrade which would be an excellent complement to our existing retailers including Old Navy, Mann Theaters, Toys R Us and many other local and national merchants. Burlington Coat Factory’s unique shopping experience and breadth of merchandise is ideal for our shoppers and tenant mix,”
The new store is slated to open in September 2010, being the first in Thousand Oaks and the forty-ninth in California.
When open, the Burlington Coat Factory location will employ approximately 75 sales and management associates. Local Burlington Coat Factory shoppers will also benefit with savings of up to 70% off department store prices…EVERY DAY!
Media Contact: David Ebeling, Ebeling Communications, 949.278.7851, email@example.com
Grubb & Ellis Enhances Real Estate Services Platform with Healthcare and Medical Office Practice Group
NEWPORT BEACH, CA (May 26, 2010) – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, today announced that Garth Hogan (top right photo) has joined the company as executive managing director, Healthcare and Medical Office practice group.
Hogan joins from Medical Realty Advisors, where he was founder, president and chief executive officer.
Together with Scott Johnstone (middle left photo), a senior vice president who has been with the company since 2002, Hogan will lead the expansion of the company’s capabilities and commitment to provide fully integrated real estate services platform for clients in the healthcare and medical office sector.
“With his extensive experience in building his own full-service practice offering tenant representation, agency leasing, property management and investment sales for healthcare clients, Garth’s addition greatly enhances the services we can provide to both investors and users in the sector.”
After founding Medical Realty Advisors in 1992, Hogan grew the firm’s agency leasing portfolio to more than 80 medical buildings totaling in excess of 3 million square feet and has facilitated more than 1,000 leases on behalf of users, including regional and national healthcare systems. Throughout his career, Hogan has negotiated transactions in excess of $1 billion.
Hogan can be reached at 949.608.2115 or via e-mail at firstname.lastname@example.org
Erin Mays, Phone: 312.698.6735 , Email: email@example.com
Julia McCartney, 714.975.2230, firstname.lastname@example.org
UNIONDALE, NY (May 26, 2010) - Arbor Commercial Funding, LLC (“Arbor”), a wholly-owned subsidiary of Arbor Commercial Mortgage, LLC, announced the recent funding of a $2,600,000 loan under the Fannie Mae DUS® Small Loan product line for the 107-unit complex known as Summit Breckenridge Apartments in Duluth, MN.
The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.75 percent.
The loan was originated by Ted Nasca (top right photo), Director, in Arbor’s full-service Chicago, IL lending office.
“This transaction was an excellent fit for Arbor's Small Loan Program,” said Nasca. “Although located in a smaller market, the deal strengths of a solid operating history, good asset quality and excellent management allowed us to deliver on this financing request.”
Contact: Ingrid Principe, email@example.com
TAMPA, FL, May 26, 2010 – Sun Hospitality Advisors, a division of The Plasencia Group, Inc. (TPG), is pleased to announce the company served as the exclusive advisor in the marketing and sale of the Radisson Hotel Orlando-UCF. (top left photo)
The seller was Moody National; the buyer was SkyLine Hotels, LLC, an Orlando-based owner/operator.
The transaction was completed for a purchase price of $5.5 million. The new owner intends to retain the Radisson brand.
“The worst is definitely behind us,” suggested Dennis Reed, (middle right photo) TPG’s Senior Vice President for the Southeast Region and a 30-year veteran of the hospitality industry.
“Buyer interest continues to pick up and we are seeing clear signs that financing continues to loosen up. Pricing in the market continues to improve. As a result, we expect transaction volume to continue to ramp up.”
The 150-room Radisson Hotel Orlando-UCF, at 1724 Alafaya Trail in Orlando, is located within two miles of significant demand generators, including Central Florida Research Park, the University of Central Florida, and major corporations Lockheed Martin and Raytheon.
Media Contact: Karen Brand, VP Marketing & Communications, The Plasencia Group, Inc., (203) 202-4549 / kbrand@TPGhotels.com