A bankruptcy judge approved the sale of an Aventura office tower that was acquired for $75 million in 2006.
Judge Raymond Ray authorized the transfer of the 11-story, 214,000 square foot Harbour Center building at 18851 Northeast 29th Avenue. A partner who only had a six percent stake in the property was able to tap into a rarely used clause to avert foreclosure and sell the entire building – not just its share. Under the approved deal, a new buyer will pay off noteholder Wells Fargo and other creditors, restructure $45 million in debt and give the 30 stakeholders in the property about $2.3 million over the next five years.
The 30 owners were considered tenants in common, an ownership structure that is typically set up for real estate investments by family members or people who know each other well, according to the Daily Business Review. Tenants in common can get tax breaks if they reinvest proceeds from a property sale.
“If these people were to fight among themselves, the secured lender would have taken the property, and they would have lost everything,” attorney Thomas Messana said. Messana represented the partner that initiated the Harbour Center sale. [Daily Business Review] — Eric Kalis