The developer of the stalled Mandarin Oriental Boca Raton condo project was able to score one win, albeit small.
Affiliates of Penn-Florida Companies sued their lender, entities tied to New York-based Madison Realty Capital, over the pending foreclosure of the luxury development, which has been tied up in lawsuits and delays for years. Earlier this summer, affiliates of Madison sued to foreclose on the site, and a UCC auction was scheduled for last week.
Penn-Florida’s attorneys convinced a New York judge to halt the sale. A new hearing was set for Oct. 1, buying the developer a little time. The developer is seeking more than $500 million in damages, and it alleges Madison created the defaults that it’s using as the basis to foreclose on the properties. Madison didn’t respond to a request for comment.
The developer’s lawsuit spilled some dramatic dirt. Months after Penn-Florida closed on the loans, Madison stopped funding the project, and later took over control, including construction, the developer alleges. Madison tapped an allegedly inexperienced lawyer to be the “de facto decision maker,” replaced the GC and hired Project Management Advisors to oversee the project.
A Madison employee allegedly told a PMA employee to go “scorched Earth,” “crush the project,” and to “mother-fuck them up,” the lawsuit claims.
The allegations have made a lot of noise for a project that has become an eye sore for many people who drive, work and live nearby. But once again, in limbo still are the buyers in the unfinished 88-unit condo project at 105 East Camino Real.
We’ll be keeping an eye out for what happens Oct. 1.
What we’re thinking about: All the chatter around Ken Griffin’s rumored purchase of the Mana Wynwood complex. What do you know? What do you think? Send me a note at kk@therealdeal.com.
Residential: In Miami Beach, Ilya Karpov, a Russian businessman, parted with the newly built home at 2740 North Bay Road for $72 million. A trust purchased the nearly 10,000-square-foot mansion, which has seven bedrooms, seven bathrooms and a pool.
Commercial: A Brickell development site sold for $50 million. The site includes two commercial properties measuring a combined 16,800 square feet at 625 Southwest First Avenue and 66 Southwest Sixth Street and a vacant lot spanning 74,400 square feet at 99 Southwest Seventh Street. Two Roads Development and Newgard Development Group sold the site to Prosper Group and Versluys Group.
— Research by Mary Diduch
A Fisher Island penthouse hit the market with an asking price of just under $40 million, or about $4,000 per square foot. The unit, in one of Miami’s priciest enclaves, is at the Palazzo Della Luna building, developed by Heinrich von Hanau’s PDS Development. The seven-bedroom and 10-bathroom unit at 6893 Fisher Island Drive measures 9,800 square feet. It also comes with a $26,000-a-month HOA fee. Sam Gaita of the Corcoran Group has the listing.
— Alissa Gary
Real estate and construction executive Adam Hlavaty and three other South Floridians were among the people killed in a safari helicopter crash in Kenya. Hlavaty’s husband, Henry Parra, Miami restaurateur Roger Edward Duarte and Telemundo executive and journalist José Alberto Suárez also died in the crash.
- West Palm Beach is seeking permission to move forward with a plan to convert six historic “shotgun” houses — three of which burned down in February — into affordable housing. The 1920s-era homes on Douglass Avenue are owned by the city’s Community Redevelopment Agency, which will ask for the Historic Preservation Board’s approval at its Aug. 25 meeting.
- NBA all-star Scottie Barnes is among the investors for a new Miami pickup basketball club at 7225 Northwest 1st Court, the South Florida Business Journal reported. The planned facility will mark the second location for Los Angeles-based Crosscourt.
- The Church of Scientology is looking to take over two streets and an alleyway in Clearwater for a proposed $50 million entertainment center, according to the Tampa Bay Times. The City Council is supposed to vote next month on the group’s controversial request.
— Alissa Gary
