The lender of the Whitney condominium in West Palm Beach has taken back the remaining unsold units in the recently constructed nine-story residential tower, according to the South Florida Business Journal.
New York-based iStar Financial has taken back 140 unsold units from the Miami developer Evernia Properties, which still owes $43.9 million of a $52.5 million construction loan taken out in 2004. The remaining debt works out to about $314,000 per unit repossessed, according to the story.
Fremont Investment and Loan was the original lender on the Whitney, but subsequently sold the condo construction loan as part of a portfolio sale to iStar.
A foreclosure action was filed by iStar before the developer decided in December 2008 to hand over the remaining units by agreeing to a deed in lieu of foreclosure, according to the story
Located at 410 Evernia Street, the Whitney condominium had strong presales during the condo boom of 2004-05 but was only able to close 70 units, or about one-third of the total inventory, when the tower was completed in 2007, according to the story.
The lender is now actively looking to unload the remaining units to a single buyer in a bulk sale, according to the story.
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 DatabaseTM .
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