The Real Deal Miami

Palm Beach affordable housing project files Chapter 11

Iberiabank largest creditor for project, which includes a school
January 15, 2015 12:33PM

School on 675 Auburn Avenue, Chapter 11 filed Jan. 7

School at 675 Auburn Avenue

The developer of a Delray Beach affordable housing project filed Chapter 11 last week.

Developer Auburn Trace’s largest creditor is Iberiabank, which filed a foreclosure lawsuit in October with a claim of just over $4 million targeting the 157 affordable housing units at 1000 Auburn Circle North, according to published reports. A private school building that is part of the project was also included in the suit.

The lawsuit also named the city of Delray Beach and the U.S. Small Business Administration over loans to the developer, the South Florida Business Journal reported.

Auburn Trace, represented by Boca Raton attorney Bradley Shraiberg, disclosed it had gross income of $1.6 million in 2014, down from $1.7 million in 2013. The property has been appraised at between $9.3 million and $10.7 million. [South Florida Business Journal]Kristina Puga