First Equitable Realty III is filing a $15.8 million foreclosure lawsuit against 72 units in North Bay Village’s Grand View Palace Condominium. The suit names three companies financially involved with the apartments, located at 7601 East Treasure Drive: Coastal Condos, Victory Consulting Group and Phalanx.
Costal Condos acquired the condo units with a previous mortgage from First Equitable Realty in 2008. Costal Condos then sold the property to its affiliate Victory Consulting Group for just $10. In April, Victory received a $5 million mortgage from Phalanx. First Equitable Realty is claiming that the original mortgage on the building was never paid and is asking that a $5 million mortgage — and the sale given to Victory — be voided. [SFBJ]