A couple of weeks ago we wrote a blog about Corus Bank (Are Developers Bankers? Are Bankers Developers?…). There were five major bidders up for the Real Estate Assets – Related Cos (parent company of Related Group of Florida (Jorge Perez), Colony Capital LLC, I Star, Lone Star Funds & Starwood Capital Group. Well the latter of all them, Starwood Capital Group and TPG (The Peninsula Group) are the winning bidders for the remaining assets of the now failed and defunct Corus Bank (taken over by FDIC on September 11, 2009).
The FDIC split the banking operations from its real estate holdings. According to The New York Times, the group bid $554 million for a 40% stake in the Corus real estate assets. The FDIC will retain the remaining 60% share. Corus represents the 90th bank to fail this year in the US. The blame is solely made around its loan portfolio that was based almost exclusively around condo projects in the once hot condo markets mostly in California, Florida & Georgia.
As of June 30, Corus held $4.42 billion in commercial real estate loans and $463 million in repossessed properties. At that time the bank reported that almost $3 billion of the outstanding loans were late or unpaid.
In Florida Corus holdings totaled $739 million in 15 different condo or condo conversion loans and a further $51.9m in one repossessed property (Tao project in Sunrise). Before it failed, the bank was able to sell its $44.1 million loan covering 41 unsold units at Onyx on the Bay in Miami and its $127.7 million loan covering 90 units at the Caribbean in Miami Beach. It had also successfully repossessed the 216 unit Aventine in Boynton Beach.
As Luxury Realtors specializing in Oceanfront and Intracoastal properties, we kept a special eye on the demise of Corus Bank as for us some of the bank’s most worthy assests were Jade Ocean Condominiums in Sunny Isles, Paramount Bay in Miami and the Trump International Hotel & Tower in Fort Lauderdale. Imagine these assets and others are now in the hands of the FDIC. Needless to say, the story is not yet over!!!
Out next blog will cover Jade Ocean Condominiums in Sunny Isles including exclusive photos and information.
For all your Real Estate needs in Southeast Florida count on the Golan Team (786-333-6200 or 786-271-1235), Your Luxury Realtors for Deserving Clients”
Showing posts with label Corus Bank. Show all posts
Showing posts with label Corus Bank. Show all posts
Wednesday, October 7, 2009
Monday, September 14, 2009
Are Developers Bankers? Are Bankers Developers?
In the past it was so simple. You needed a loan you went to a Bank. You needed to buy property you went to the Developer. Nowadays this line has been totally obscured. Last week, Stephen Ross of The Related Companies applied to form a bank. Here the Developer has now decided to become the Bank. Then you have several banks that have foreclosed on projects and are now selling them at discounted rates to Bulk Buyers and other investors. There the Banks have become the Developers/
Honestly, being in Real Estate has never been more tricky or confusing. Last Friday evening the FDIC closed the doors of Chicago Bank, Corus Bank. Corus Bank like so many of the other 92 banks that have failed this year invested heavily in Condo Construction Loans. In fact in just our area of South Florida they financed over $3,000,000,000 Yes that is THREE BILLION DOLLARS of construction loans. Notable projects include:
$288,115,000 for the construction of Jade Ocean in Sunny Isles Beach..
$216,000,000 for the downtown Paramount Bay
$191,800,000 for The Mint Downtown
$130,400,000 for The Ivy Downtown
$139,000,000 for Trump International Hotel and Tower in Fort Lauderdale
$135,000,000 for Phase II at the Continuum in South Beach
$130,000,000 for Artech in Aventura
$124,700,000 for the Caribbean in Miami Beach (note the outstanding balance of this loan was just settled for $50m by a NY investor)
$86,000,000 for Hampton South in Aventura
$83,175,000 for The Akoya in Miami Beach
$42,272,000 for The Solis in Sunny Isles Beach
$30,298,000 for The Peninsula in Aventura
Currently the FDIC is deciding whether to divide the bank’s assets and liabilities into Real Estate holdings and Bank holdings. Whichever way it goes, I guarantee you are going to see a feeding frenzy of Developers or Deep Pocket investors who will prance on the chance of buying these loans at a few cents on the Dollar. If this happens one can only ask how it will affect the pricing of this units still to come on the market. If you remember an earlier blog we did on the state of affairs in the Brickell area we discussed the construction of 23,000+ units in the last five years. Already almost 50% of these units are available for sale or resale (through the Developers or through the Multiple Listing Services) and we have seen Bulk Deals going for as low as $150/ft.
As a seasoned Real Estate team we can definitely say the opportunities out there are like nothing you have ever seen before. You need patience, education but there are definitely opportunities for the taking.
If you are interested in discussing your Real Estate needs further, call us at 786-333-6200, post a comment or email us confidentially at info@golanteam.com
Honestly, being in Real Estate has never been more tricky or confusing. Last Friday evening the FDIC closed the doors of Chicago Bank, Corus Bank. Corus Bank like so many of the other 92 banks that have failed this year invested heavily in Condo Construction Loans. In fact in just our area of South Florida they financed over $3,000,000,000 Yes that is THREE BILLION DOLLARS of construction loans. Notable projects include:
$288,115,000 for the construction of Jade Ocean in Sunny Isles Beach..
$216,000,000 for the downtown Paramount Bay
$191,800,000 for The Mint Downtown
$130,400,000 for The Ivy Downtown
$139,000,000 for Trump International Hotel and Tower in Fort Lauderdale
$135,000,000 for Phase II at the Continuum in South Beach
$130,000,000 for Artech in Aventura
$124,700,000 for the Caribbean in Miami Beach (note the outstanding balance of this loan was just settled for $50m by a NY investor)
$86,000,000 for Hampton South in Aventura
$83,175,000 for The Akoya in Miami Beach
$42,272,000 for The Solis in Sunny Isles Beach
$30,298,000 for The Peninsula in Aventura
Currently the FDIC is deciding whether to divide the bank’s assets and liabilities into Real Estate holdings and Bank holdings. Whichever way it goes, I guarantee you are going to see a feeding frenzy of Developers or Deep Pocket investors who will prance on the chance of buying these loans at a few cents on the Dollar. If this happens one can only ask how it will affect the pricing of this units still to come on the market. If you remember an earlier blog we did on the state of affairs in the Brickell area we discussed the construction of 23,000+ units in the last five years. Already almost 50% of these units are available for sale or resale (through the Developers or through the Multiple Listing Services) and we have seen Bulk Deals going for as low as $150/ft.
As a seasoned Real Estate team we can definitely say the opportunities out there are like nothing you have ever seen before. You need patience, education but there are definitely opportunities for the taking.
If you are interested in discussing your Real Estate needs further, call us at 786-333-6200, post a comment or email us confidentially at info@golanteam.com
Thursday, August 20, 2009
SOUTH FLORIDA REAL ESTATE BULK DEALS
For the past two years the two buzz terms in Real Estate in South Florida have been “Foreclosure” or “Short Sale”. Buyers looking for deals or to buy below current market value were constantly looking for these two “adjectives” or what The Golan Team calls “qualifiers”. It was amazing there were Buyers out there that literally would only want to see properties with these criteria and then would decide of the choices they saw which one to take.
Now these buzz terms have taken a back seat to the newest buzz in the Real Estate world “BULK SALE”. A Bulk Sale is defined as an investor lead individual or group that purchases a group or Bulk of units ranging in numbers from a low quantity such as 10 units to 500+ units at a discounted rate. They are usually purchasing from the Developer units that either were never sold or were sold and not closed (due to lack of financing) and returned to the Developer. Some of these Bulk Deals are also being negotiated directly with Lenders who are looking to Foreclose on other Developers or on complexes that are in default. The Bulk deals are almost always "ALL CASH" scenarios. After the deal closes there are opportunities to obtain some financing.
According to our research over 1700 units have exchanged hands in the past year to year and a half as “Bulk Sales” in our local area (Dade, Broward, Palm Beach counties). Other smaller deals if included (smaller we classify as 10 or less) can take this number even higher.
Some of the highlight deals include:
1) July 2008 - 50 Biscayne (Downtown Miami, FL) – 146 units sold to a group of investors from Philadelphia (Lubert-Adler Partners LP) who joined Related group (the Developer) in this bulk sales @ $246/ft. ($36.4m) Shortly after closing they sold 10 units $367/ft.
2) January 2009 - Harbour House, Bal Harbour – a consortium of Related investors paid $277/ft for 101 units. Total purchase price was $27m. (Note the Related Group was said to have raised $1 billion in a consortium just to buy Bulk Sale Condo opportunities).
3) July 2009 - A South Florida private equity group, Elcom Condominium LLC paid $2.6 million to purchase 51 new, oceanfront condo-hotel units in the luxury One Bal Harbour complex – Regent (now called Bal Harbour Hotel) and another $12 million for 67,031 square feet of hotel common areas and land. (This equates to approximately $135/ft average for the common area and hotel compared to the average selling price of $1100/ft that the Developer WCI Communities charged Buyers for preconstruction pricing at the One Bal Harbour Regent Hotel project.) Interesting to note, the day after this Bulk deal went through, the Regent Hotel chain pulled out of their contract to run the hotel. There are a total of 124 hotel condo units in the Regent/Bal Harbour Hotel.
Now there are two Bulk deals arising that are of interest
1) WCI Communities – the builder of the One Bal Harbour/Regent Bal Harbour project, is seeking court approval to hold a September 22, 2009 auction for its Pompano Beach condo complex. Currently a New York based company, Chetrit Group LLC is bidding $46.7 million. According to the Miami Herald , WCI Communities and it’s chairman, billionaire investor, Carl Icahn wants this $46.7m bid to be the opening bid at an auction A September 2, hearing has been requested for court approval of the auction proceedings. The Chetrit Group have been huge players in the Real Estate world and have been linked to bids and purchases of such iconic structures as the Sears Tower in Chicago ($840m sale), Roney Palace in Miami Beach (bid was $150m) and various iconic buildings in Manhattan.
2) The Related Group of Florida (whose iconic Condo King head is Jorge Perez easily the most recognizable name in South Florida Real Estate) associate company, New York Developer, Related Cos and the Lubert-Adler Partners LP of Philadelphia (you will recognize their name from the purchase of Bulk units at 50 Biscayne in Downtown Miami) have teamed up to bid on the assets of condo lender Chicago based, Corus Bank. A sale could be weeks away though according to the Wall Street Journal there are up to three other key bidders for these assets. Some of the most prominent condo projects in South Florida: Jade Beach and Jade Ocean Condominiums in Sunny Isles Beach, FL, the Trump International Hotel and Tower in Fort Lauderdale and Edge Condominium in West Palm Beach. All in all the assets could be as high as 6,400 condo units in South Florida.
The Golan Team are working with investors interested in purchasing Bulk Deals particularly on Oceanfront properties and Downtown Miami/Brickell area. We have identified several key opportunities for purchase. If you are interested, please contact us at 786-333-6200 or send an email with your requirements and preferences to debra@golanteam.com
Now these buzz terms have taken a back seat to the newest buzz in the Real Estate world “BULK SALE”. A Bulk Sale is defined as an investor lead individual or group that purchases a group or Bulk of units ranging in numbers from a low quantity such as 10 units to 500+ units at a discounted rate. They are usually purchasing from the Developer units that either were never sold or were sold and not closed (due to lack of financing) and returned to the Developer. Some of these Bulk Deals are also being negotiated directly with Lenders who are looking to Foreclose on other Developers or on complexes that are in default. The Bulk deals are almost always "ALL CASH" scenarios. After the deal closes there are opportunities to obtain some financing.
According to our research over 1700 units have exchanged hands in the past year to year and a half as “Bulk Sales” in our local area (Dade, Broward, Palm Beach counties). Other smaller deals if included (smaller we classify as 10 or less) can take this number even higher.
Some of the highlight deals include:
1) July 2008 - 50 Biscayne (Downtown Miami, FL) – 146 units sold to a group of investors from Philadelphia (Lubert-Adler Partners LP) who joined Related group (the Developer) in this bulk sales @ $246/ft. ($36.4m) Shortly after closing they sold 10 units $367/ft.
2) January 2009 - Harbour House, Bal Harbour – a consortium of Related investors paid $277/ft for 101 units. Total purchase price was $27m. (Note the Related Group was said to have raised $1 billion in a consortium just to buy Bulk Sale Condo opportunities).
3) July 2009 - A South Florida private equity group, Elcom Condominium LLC paid $2.6 million to purchase 51 new, oceanfront condo-hotel units in the luxury One Bal Harbour complex – Regent (now called Bal Harbour Hotel) and another $12 million for 67,031 square feet of hotel common areas and land. (This equates to approximately $135/ft average for the common area and hotel compared to the average selling price of $1100/ft that the Developer WCI Communities charged Buyers for preconstruction pricing at the One Bal Harbour Regent Hotel project.) Interesting to note, the day after this Bulk deal went through, the Regent Hotel chain pulled out of their contract to run the hotel. There are a total of 124 hotel condo units in the Regent/Bal Harbour Hotel.
Now there are two Bulk deals arising that are of interest
1) WCI Communities – the builder of the One Bal Harbour/Regent Bal Harbour project, is seeking court approval to hold a September 22, 2009 auction for its Pompano Beach condo complex. Currently a New York based company, Chetrit Group LLC is bidding $46.7 million. According to the Miami Herald , WCI Communities and it’s chairman, billionaire investor, Carl Icahn wants this $46.7m bid to be the opening bid at an auction A September 2, hearing has been requested for court approval of the auction proceedings. The Chetrit Group have been huge players in the Real Estate world and have been linked to bids and purchases of such iconic structures as the Sears Tower in Chicago ($840m sale), Roney Palace in Miami Beach (bid was $150m) and various iconic buildings in Manhattan.
2) The Related Group of Florida (whose iconic Condo King head is Jorge Perez easily the most recognizable name in South Florida Real Estate) associate company, New York Developer, Related Cos and the Lubert-Adler Partners LP of Philadelphia (you will recognize their name from the purchase of Bulk units at 50 Biscayne in Downtown Miami) have teamed up to bid on the assets of condo lender Chicago based, Corus Bank. A sale could be weeks away though according to the Wall Street Journal there are up to three other key bidders for these assets. Some of the most prominent condo projects in South Florida: Jade Beach and Jade Ocean Condominiums in Sunny Isles Beach, FL, the Trump International Hotel and Tower in Fort Lauderdale and Edge Condominium in West Palm Beach. All in all the assets could be as high as 6,400 condo units in South Florida.
The Golan Team are working with investors interested in purchasing Bulk Deals particularly on Oceanfront properties and Downtown Miami/Brickell area. We have identified several key opportunities for purchase. If you are interested, please contact us at 786-333-6200 or send an email with your requirements and preferences to debra@golanteam.com
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