By Alexandra Clough
Palm Beach Post Staff Writer
The Related Group of Miami now is in control of the construction loan backing the troubled Promenade condominium, the Boynton Beach property that has come to symbolize the condo real estate bust in Palm Beach County.
An affiliate of the prominent Miami-based developer on Dec. 5 purchased the property’s $122 million note from a group led by Wells Fargo Bank, according to records filed in Palm Beach County Circuit Court.
Real estate sources say Related paid less than half the value of the construction loan. A foreclosure auction for 323 unsold condo units is set for Thursday . However, no other bidders are expected to top the $122 million loan amount, so the property likely will remain in Related’s hands, the sources said. Related is expected to take title to the property Thursday from developer Boynton Waterways Investment Associates in what sources describe as a “friendly foreclosure.”
The construction loan’s sale puts Related in charge of the mammoth condo and frees the property from the uncertainty that has surrounded the Promenade since its inception.
“Having (Related) going into it will make a marked improvement (of the condo) when it comes to the perception of future buyers,” said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach.
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An affiliate of the prominent Miami-based developer on Dec. 5 purchased the property’s $122 million note from a group led by Wells Fargo Bank, according to records filed in Palm Beach County Circuit Court.
Real estate sources say Related paid less than half the value of the construction loan. A foreclosure auction for 323 unsold condo units is set for Thursday . However, no other bidders are expected to top the $122 million loan amount, so the property likely will remain in Related’s hands, the sources said. Related is expected to take title to the property Thursday from developer Boynton Waterways Investment Associates in what sources describe as a “friendly foreclosure.”
The construction loan’s sale puts Related in charge of the mammoth condo and frees the property from the uncertainty that has surrounded the Promenade since its inception.
“Having (Related) going into it will make a marked improvement (of the condo) when it comes to the perception of future buyers,” said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach.
Read full article..
