Bank Owned Properties List Bears Florida Commercial Assets- By: John Cutts
Every bank owned properties list in South Florida has been including an increasing number of commercial properties since 2009 as developers and property owners continue to be battered by lack of additional bank financing, lack of tenants, decline in rents and lack of property buyers.
In December, the unfinished 20-unit condo building in Miami Beach started by Cypress Bay Development and Ark Developers was foreclosed by Compass Bank and will be sold off in an auction in February. The developers owe Compass Bank $4 million and also owe Tala Construction Company $603,187.
Ark Developers also lost another project to foreclosure in October when First Southern Bank foreclosed on its residential project in Oakland Park due to an unpaid $2.7 million loan.
Another recent South Florida commercial foreclosure involved four apartment complexes and a hotel in Lauderdale-by-the-Sea. The development company El Mar Place Developers signed with lender Fifth Third Bank a foreclosure agreement in which the bank will sell the properties in a public auction in Broward County if it fails to pay its $3.9 million loan on March 9.
El Mar Place Developers has other foreclosure problems. In October, another property went into a bank owned properties list when it failed to pay a loan owed to TransCapital Bank. It is also facing a pending $350,000 foreclosure case filed by Landmark Bank.
Meanwhile, a nine-acre marina site with buildings along Miami River has been foreclosed by Bridgeloan Investors after developer Miami River Park failed to pay its $13.8 million loan. The developer purchased the marine site in 2005 from a bankruptcy court for $13 million, with $7 million borrowed from Bridgeloan. It increased its loan in 2007 to $12 million.
Aside from the marina site, the developer is also at risk of losing its apartment building and duplexes which were included in a default agreement with Bridgeloan Investors.
According to Adiba Michele Ash, chief executive of real estate firm Simply Marinas, the marina site has been attracting a lot of buyers but Miami River Park Marina refused to reduce its asking price, which reached $30 million at one point. In one online advertisement, Charles Tavares of Miami River Park, has lowered the price to $13 million.
Just like other properties with great potentials, the marina site is a great location for marine service and boat manufacturing, but current economic difficulties have forced investors to succumb to conditions that ultimately put the site into a bank owned properties list.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.