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Ocean Bank sold 128 condominium units in Hialeah to a bulk buyer for 51 percent off the mortgage at the time it foreclosed on them.
The Miami-based bank won an $18 million foreclosure judgment in December against developer 4400 LLC. It was based on the $15.6 million outstanding on the loan, plus interest and fees. The bank later took title to the units in Casa Bella, which has six buildings at the southwest corner of West 46th Street and West 16th Avenue.
According to court records uncovered by Bal Harbour-based Condo Vultures LLC, an affiliate of Ocean Bank sold the 128 units to DREA Group 29, a company based in Bay Harbor Islands and registered in Delaware, for $7.5 million. The price came to $58 a square foot.
Before the foreclosure, 4400 LLC had sold 52 units in Casa Bella for an average of $202 a square foot, Condo Vultures reported.
"New condo inventory marketed for bulk is rapidly being depleted in South Florida," Condo Vultures principal Peter Zalewski said. "This dwindling of distressed condo inventory is forcing many buyers to recalibrate their strategies and increasingly look outside of greater downtown Miami and South Beach for deals. We expect that a majority of all future South Florida bulk deals will occur in Miami's western suburbs or to the north in greater Fort Lauderdale and West Palm Beach."
Ocean Bank lost $52.8 million in the second quarter, mostly due to the falling value of the properties covered by its distressed loans.
The Miami-based bank won an $18 million foreclosure judgment in December against developer 4400 LLC. It was based on the $15.6 million outstanding on the loan, plus interest and fees. The bank later took title to the units in Casa Bella, which has six buildings at the southwest corner of West 46th Street and West 16th Avenue.
According to court records uncovered by Bal Harbour-based Condo Vultures LLC, an affiliate of Ocean Bank sold the 128 units to DREA Group 29, a company based in Bay Harbor Islands and registered in Delaware, for $7.5 million. The price came to $58 a square foot.
Before the foreclosure, 4400 LLC had sold 52 units in Casa Bella for an average of $202 a square foot, Condo Vultures reported.
"New condo inventory marketed for bulk is rapidly being depleted in South Florida," Condo Vultures principal Peter Zalewski said. "This dwindling of distressed condo inventory is forcing many buyers to recalibrate their strategies and increasingly look outside of greater downtown Miami and South Beach for deals. We expect that a majority of all future South Florida bulk deals will occur in Miami's western suburbs or to the north in greater Fort Lauderdale and West Palm Beach."
Ocean Bank lost $52.8 million in the second quarter, mostly due to the falling value of the properties covered by its distressed loans.