Wealthy N.J. estate owner no longer immune to recession

The property of a wealthy homeowner who considered himself immune to
the economic crisis is now facing foreclosure, the Wall Street Journal
reported. Private equity investor Paul Parmar had declared in April
2008 that the downturn “didn’t affect him at all on a spending level.”
But now his 32-acre compound in Colts Neck, N.J. is scheduled to be
auctioned off Oct. 31. According to Propertyshark.com, he owes
$26.3 million on the property, and Deutsche Bank, which held a $23
million mortgage on the property, brought the foreclosure case.

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According to an analyst at Propertyshark, the Parmar foreclosure
auction was the largest that the property website has tracked in
recent years in New Jersey, based on the size of the lien owed. He had
paid about $2.9 million total in 2000 and 2003 to buy two large parcels in
Colts Necks, property records show, and then hired a developer to
transform them into his elaborate estate.

He sold a Florida property at a loss last year. In 2007, property
records show, Parmar purchased an 8,870-square-foot waterfront home
with a 100-foot dock in Pompano Beach for $12 million, including a $9
million mortgage. But last fall, he sold it for $3.8 million, and the
buyer then immediately flipped it for $5.4 million, according to
property records. [WSJ]

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