An Iconic example for distressed sales

The fate of Miami’s newly built three-tower Icon Brickell complex will teach the market how to handle discounted sales, rather than serve as a barometer for pricey purchases. Its lenders, led by HSBC Holdings, have gone into the real estate business, opting to sell their units individually, rather than selling off to an investor that will get a heavy discount before going to retail resales. The Icon lenders will market their units to Latin American buyers ready to pay cash for relatively secure investments and impressive Miami addresses. The HSBC effort must compete with Starwood Capital Group, which now has a 14-building portfolio Miami, Fort Lauderdale and Palm Beach and is trying to move its new holdings in a battered South Florida market. [WSJ]