Foreign condo buyers in SF help risky loan bet pay off

TRD MIAMI /
Oct.October 24, 2011 01:58 PM
alternate
text
From left: Infinity at Brickell, Paramount Bay and Jade Ocean in Sunny Isles Beach

When ST Residential outbid seven possible suitors, including the Related Companies, for failed Corus Bank of Chicago’s national distressed loan portfolio, industry observers believed the firm overpaid for the loans as the market headed for collapse.

But the Miami Herald reported that ST Residential will pass its first test with the loans when it completes a $150 million payment to the Federal Deposit Insurance Corporation. It can thank the buyers of 1,400 South Florida condominiums, many of whom were foreign, who accounted for about $650 million in sales, the Herald said.

The fund, which ST Residential bought from the FDIC for more than $550 million in 2009, is comprised of a 40 percent managing equity stake in a loan portfolio with an outstanding balance of $4.5 billion — priced at 60 percent of the book value at the time — backing 23 million square feet of mostly new condominium development financed by Corus in South Florida, Los Angeles, New York and Phoenix. It included Infinity at Brickell, Paramount Bay and Mint in downtown Miami, Artecity in Miami Beach, Jade Ocean in Sunny Isles Beach and Artech Residences in Aventura.

To cushion the financial burden the FDIC issued $1.38 billion in notes that would be repaid over three payments. Thanks in large part to the success ST has had because of foreign buyers in the active Miami sales market, ST will easily make the payment tomorrow, and already has the funds ready for the remaining $1.27 billion that needs to be paid. [Miami Herald]


Related Articles

arrow_forward_ios
360 Rosemary, Stephen Ross

Spaces is moving into West Palm’s 360 Rosemary

Spaces is moving into West Palm’s 360 Rosemary
Related Companies Stephen Ross and 360 Rosemary (Credit: Elkus Manfredi Architects/ Related)

Related nabs $140M loan for 360 Rosemary in West Palm

Related nabs $140M loan for 360 Rosemary in West Palm
Stephen Ross and a rendering of One Flagler (Credit: Getty Images)

Related Cos. revives plans for West Palm office tower

Related Cos. revives plans for West Palm office tower
Huizenga lobbied Rick Scott to secure Opportunity Zone designation for West Palm site

Huizenga lobbied Rick Scott to secure Opportunity Zone designation for West Palm site

Huizenga lobbied Rick Scott to secure Opportunity Zone designation for West Palm site
Rendering of SLS Resort Residence & Marina Hallandale Beach, Ari Pearl, Sam Nazarian and Faisal Ashraf

Ari Pearl lands $100M loan to build first phase of SLS project in Hallandale Beach

Ari Pearl lands $100M loan to build first phase of SLS project in Hallandale Beach
Renderings of Rosemary Square and 360 Rosemary

Artificial intelligence and investment firms sign leases at Rosemary Square

Artificial intelligence and investment firms sign leases at Rosemary Square
Related breaks ground on second phase of CityPlace project

Related breaks ground on second phase of CityPlace project

Related breaks ground on second phase of CityPlace project
Bankruptcy judge approves sale of Palm House Hotel for $40M

Bankruptcy judge approves sale of Palm House Hotel for $40M

Bankruptcy judge approves sale of Palm House Hotel for $40M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...