A European bulk buyer has purchased 141 units in the troubled Whitney condominium for $24 million, or a 45 percent discount off of the existing $43.9 million loan amount, according to the Palm Beach Daily Business Review.
ABG Sundall Collier, a publicly traded Scandanavian investment firm based in Oslo, Norway, reportedly closed the deal on Feb. 12 although the unit deeds have not yet been recorded with Palm Beach County Clerk of the Court, according to the article.
"Our analysis indicates that the bulk buyer paid $144 per square foot for the remaining residential inventory that had an existing loan amount equal to $264 per square foot, " said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "From a price discovery perspective, it is important to note that this is the second bulk condo transaction to close in Downtown West Palm Beach in the mid-$100 per square foot range."
The seller was a Florida entity related to New York-based lender iStar Financial, which began foreclosure proceedings against the new eight-story midrise condominium in January 2008. The lender eventually gained possession of the property from the developer in December 2008 with a deed-in-lieu of foreclosure transfer.
Fremont Investment and Loan was the original lender on the Whitney condominium, but subsequently sold the condo construction loan as part of a portfolio sale to iStar. The original loan amount for the 210-unit complex was $52.5 million, or an average of $250,000 per unit.
Located at 410 Evernia Street, the Whitney condominium had strong presales during the condo boom of 2004-05 but was only able to close 69 units, or about one-third of the total inventory, when the tower was completed in June 2007.
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 .
Copyright © 2009, Condo Vultures® LLC
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