Lenders sue Royal Palm owners
A fund controlled by investment management firm Blackrock has sued Guy Mitchell, majority owner of the Royal Palm hotel in South Beach, where the conversion of 150 rooms to hotel-condo units is stalled. The suit alleges that Mitchell and his partners are overdue on loans borrowed to purchase the hotel for $128 million in 2005 and claims the mismanaged hotel is losing as much as $12 million per year. Amidst the ongoing legal dispute, Mitchell has put the hotel up for sale for $220 million, according to sources.
Critics have said that because the hotel is not a national brand — it is operated by Crowne Plaza — it is unable to compete with other South Beach resorts. But the hotel’s original developer, R. Donahue Peebles, who opened it in 2002, claims the hotel was making enough money to cover its $55 million loan under his ownership.
Miami office bldg sells for $49M
Rubicon America Trust has sold One Riverview Square, an eight-story Class A office tower at 333 South Miami Avenue, to Boston-based Eaton Vance for $49.6 million. The 147,895-square-foot building is 100 percent leased by the United States government, housing Immigration and Customs Enforcement and Social Security Administration offices, and has an attended, three-level parking garage.
Florida passes foreclosure fraud bill
The Florida state legislature passed bills pertaining to foreclosure fraud and new condos in both the House and Senate in May, both of which are expected to be signed by Gov. Crist. As a result of one bill, the foreclosure rescue business will have more transparency, and fraudulent offers to save homes from foreclosure will soon face greater penalties. Rescue companies will have to provide disclosures in contracts, including the fact that a homeowner may be selling his or her property.
A bill that would make several amendments to Florida’s condominium law was unanimously approved in both the House and Senate. It will restrict owner associations from appeasing complaining condo owners with payments, make it harder for those convicted of a felony to serve on boards, and allow owners to place religious symbols on their doorposts.
Sports celebs buy and sell
Several high-profile sports figures have made big real estate buys in South Florida recently.
Retired basketball pro Michael Jordan has purchased two lots in Jupiter for $4.8 million, according to Palm Beach County records. The parcels are located in the private golf club community Bear’s Club, at 172 and 174 Bear’s Club Drive.
Billionaire Wayne Huizenga, part owner of the Miami Dolphins, has sold his Fort Lauderdale estate for an undisclosed price. The 1926 building at 516 Mola Avenue, which sits on 11,000 square feet of property, was listed for more than $17 million about a year ago.
Miami Dolphins coach Tony Sparano paid $1.7 million for a five-bedroom lakefront home in Davie in Broward County, according to property records. Sparano, who was recently hired to replace Cam Cameron after the Dolphins had a disasterous 2007 season, purchased the 5,182-square-foot home in Stonebrook Estates with his wife.
Home sales may have hit bottom
Miami ranks No. 1 on a list of the top
10 worst-selling housing markets in
the country, a recent report by Miami television station CBS4 said, although according to a report from the Florida Association of Realtors, March showed the first increase in home sales of the
year in South Florida, signaling a possible turnaround in the market.
While the number of unsold homes on the market is also increasing, the rate at which homes are hitting the market has slowed in many places, and almost stopped in Broward County’s condo market. Home sales in Miami-Dade County were up 13
percent in March, from the month before; sales were up 29 percent over the same
period in Broward.
Home prices dropped in Palm Beach County and the Treasure Coast in March, while the number of sales picked up slightly in both counties. The median price of a single-family home in Palm Beach County fell 7 percent from February to $320,000, and home prices in Treasure Coast also decreased slightly to $169,700.
South Florida industrial vacancy up
The South Florida industrial real estate market saw a first-quarter increase in vacancy rates and stabilizing rents from the previous quarter, according to Globest.com. However, market reports and experts said the region is just experiencing a correction after double-digit rent increases and record-low vacancy rates — under 5 percent — in 2007. Miami-Dade County’s industrial vacancy rate has risen to 6.3 percent, still below the statewide average of 6.5 percent. Rising fuel costs have also strained the industrial market, which has been hurt by the downsizing
of industrial companies related to the housing industry, including those producing building products and appliances.