She reported these bulk deals (this is an abbreviated summary):
Doral-based Shoma recently unloaded 724 condos, townhouses and undeveloped lots in an unfinished subdivision in Keys Gate.
Shoma sold the portfolio to Palm Breeze Executive Townhomes and Lakefront Luxury Homes for nearly $28 million. The buyers bought the properties for almost one-third of what Shoma had sold similar units on the open market over the last three years.
In downtown Miami, bulk sales are of a smaller scale and involve high-rise condos built or planned during the residential construction boom that peaked in mid-2005. Overly optimistic developers built thousands of condos in the Miami’s downtown and Brickell area. But by mid-2007, speculators and other buyers had abandoned the market, leaving developers holding hundreds of unsold units.
One of the most successful bulk buyers in South Florida is a $1 billion fund created this year by Jorge Perez’s Related Group in Miami and Philadelphia-based real estate private equity firm Lubert-Adler.
The fund has purchased nearly $100 million worth of condos in four transactions in South Florida, according to Related.
The Related Vulture Fund appears to also be buying bulk units in "Related built buildings." What's up with that?:
In Miami, the fund bought 146 condos from 50 Biscayne, a 54-story tower Related recently completed in partnership with Atlanta-based Cousins Properties. The bulk buy helped Related buy out Cousins’ interest in the 528-condo building at Biscayne Boulevard and East Flagler Street.
Vulture buying aside, Ken Thomas, a Miami bank consultant and economists said in the article: “The bottom won’t happen until mid-2010, and we won’t see price appreciation until 2011...”
6 comments:
I too have been wondering how Jorge Perez's shell game works.
Seems like it is a slick move to salvage his reputation as a developer while not taking the true losses he should be incurring by transfering the debt to another company that at a later date can go bankrupt if the need arises.Meanwhile he is able to siphon off some funds by renting these properties.
Am I on the right track with my assessment?
So that's how Shoma got the cash to keep the incumbent commissioners in office.
The US attorney needs to look into Related. This looks very fishy indeed.
I don't get it. What is the effect on the housing market when vultures buy them up? Is it more speculative capital? This time they just sit on it at a low price waiting to sell when it goes up? Will they not try to sell them at a low price, or would they do so when they can?
Hi. It's been years since you posted this news. Do you have a new updates? Thanks!
Avida towers 34th street BGC
Post a Comment