The site of the proposed 68-story Paramount Park condominium tower in Downtown Miami is being foreclosed by a Kansas lender that is owed $21.2 million, according to Miami-Dade County Clerk of the Court records.
Hillcrest Bank in Overland Park, Kan., has filed a Lis Pendens action - the first step in the long foreclosure process - against the owner of the 72,450-square-foot lot at 700 Biscayne Boulevard, immediately east of the AmericanAirlines Arena in Downtown Miami.
Royal Palm 700 Biscayne LLC obtained permission in 2006 to build a mixed-use project standing 756 feet tall and featuring 300 condominium units and 286 hotel rooms. The condominium market had changed dramatically by the time the project was ready to move forward, prompting the developer to consider other options including an office tower.
The developer originally purchased the land in December 2005 for $11.7 million, or $162 per square foot. Six months later in June 2006, Hillcrest Bank provided an $18 million loan on the property before lending another $4 million in December 2007 for a total of $22 million, or $304 per square foot.
Miami-Dade County's Property Appraiser currently assesses the property at $13.7 million, or $189 per square foot.
"Bulk buyers are currently looking to pay $100 to $215 per square foot for finished condominiums in the Greater Downtown Miami area," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® LLC. "If one were to assume that land costs should be no more than 25 percent of the entire development cost, we would estimate the Paramount Park site is currently valued at much less than $100 per square foot."
Greater Downtown Miami, a 60-block stretch that is comprised of Brickell Avenue, Downtown, and the Biscayne Boulevard Corridor, is considered by many to be ground zero for the Florida condo crash. The number of condo units in this area has nearly tripled to more than 34,000 units since 2003 according to the Condo Vultures® Official Condo Buyers Guide To Miami ™.
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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