The Caribbean Miami Beach condominiums are in need of some serious help. They are in the early stages of being foreclosed upon and things are getting pretty ugly. The six-story Art Deco- inspired building has been neglected over time, and now, quite literally, the price must be paid. The foreclosure has been initiated by 3737 Caribbean Partners LLC, the new owner of the construction loan that was originally funded by the Corus Bank. You remember Corus Bank, right? The Chicago-based bank recently went big time belly up due to its multiple commercial real estate meltdowns — 91 to be exact. The new owners wasted no time filing the foreclosure after purchasing the construction loan a mere six weeks ago.
And the lender is rightfully expecting repayment on the outstanding loan balance.“The lender is taking the necessary legal steps in hopes of repositioning this luxury South Beach project for a likely retail sellout,” says Peter Zalewski, a principal with Bal-Harbor-based real estate consultancy firm, Condo Vultures. But, if the loan cannot be repaid, the expectations will turn into demands and they are sure to be higher and more serious. In the case of non-repayment, the lender will follow up with a request for the title to all 90 condo units.
It looks as if a good game of hardball will be played if things are not taken care of in a timely manner, and this is one thing I wouldn’t waste time with, considering the numbers and all the legalities involved. For now, I and the rest of the non-real estate world, will sit back and watch how everything unfolds from the sidelines.
Via: Condo Vultures