An all-cash, bulk buyer that paid $36 million for nearly 150 units in a new Downtown Miami condominium tower last summer has just secured a $21 million mortgage on the remaining high-rise residences that haven’t been resold, according to the Wall Street Journal.
An opportunity fund established by Miami developer Jorge Perez’s Related Group and Philadelphia private equity group Lubert-Adler Partners LP purchased 146 units in 50 Biscayne condominium tower in July for $246 per square foot, or $36.4 million.
Shortly after closing, the Related/Lubert-Adler opportunity fund resold 10 units in the bayfront high-rise to individuals for $3.6 million, or $367 per square foot.
The retail sales cleared the way for Prudential Insurance Co. of America to provide $20.9 million in financing on the remaining 136 units at a price of $151 per square foot.
“Both the borrower and the lender look to win on this deal,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. “The borrower has been able to somehow obtain financing on unsold condos in a market where there is virtually no liquidity at this time. The lender has been able to finance an attractive new tower where the replacement costs far exceed the loan amount.”
Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .
Copyright © 2009, Condo Vultures® LLC
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