The Real Deal Miami

Miami Beach’s Artecity units head to bankruptcy court auction

June 15, 2011 04:03PM

The remaining 124 residential units and three retail units in the unfinished Artecity project at 435 21st Street in Miami Beach are scheduled for a bankruptcy court auction, according to the South Florida Business Journal.

Developer Artecity Management, filed for Chapter 11 bankruptcy protection back in 2010 to halt a foreclosure lawsuit by lender Corus Construction Venture.

In September, Artecity agreed to a deal in which CCV would lend it $2.7 million to help finish construction on one of its two towers. Artecity Management has not closed on a single unit since then and only sold 35 condos before the Chapter 11 filing.

Under a settlement reached between Artecity Management and CCV, and approved by the bankruptcy court, CCV will be the “stalking-horse bidder” with a $50 million bid based on its loan. It has the right to bid up to $51 million based on its loan. [SFBJ]