Homebuilder’s oceanfront land in Hillsboro sells out of bankruptcy for $49M

Largest property traded for $35 million and is zoned for multifamily

Nov.November 11, 2016 01:30 PM
The 11-acre parcel 1174-1185 Hillsboro Mile (left) and two smaller lots at 1103 and 1107 Hlillsboro Mile.

The 11-acre parcel 1174-1185 Hillsboro Mile (left) and two smaller lots at 1103 and 1107 Hlillsboro Mile.

The foreclosure saga of three prime oceanfront sites owned by homebuilder John Kennelly in Hillsboro Beach has come to an end.

A bankruptcy judge reportedly approved three separate sales for a combined $48.5 million this week, following a failed auction last month where the opening bid was set at $57 million.

Kennelly had struck a deal with his lender BridgeInvest to stave off a $38 million foreclosure suit earlier this year, agreeing to either sell or refinance the properties by November. He brought on SVN Moecker Realty to help market the properties.

But after a disappointing auction last month, according to the South Florida Business Journal, the homebuilder’s attorney moved to sell the land in separate deals.

In the largest sale, a company called Dome Realty dropped $35 million for 11.3 acres at 1174-1185 Hillsboro Mile, which is zoned for multifamily and could house up to 168 units, the Business Journal reported.

Another nearly 1.5-acre chunk at 1103 Hillsboro Mile was scooped up by Paul and Carol Cutler, executives at green energy investment company Power Generations, for $8.25 million.

Deborah and Sean Acosta also paid $5.25 million for an acre at 1107 Hillsboro Mile.

As SVN’s Keith Kidwell told The Real Deal earlier this year, the smaller lots are zoned for single-family homes and could be developed into large oceanfront spec houses. Just down the street, one of the country’s most expensive homes is up for grabs at $165 million.

The sales yielded enough cash for Kennelly to pay off his companies’s debts to BridgeInvest, the Journal reported. [South Florida Business Journal]Sean Stewart-Muniz

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