Power Developers of Miami: Then and Now ... by gimleteye

“What is a developer?” the 2004 feature from the now defunct Sun Post begins. “According to the Second College Edition of the American Heritage Dictionary, a developer is "one that develops." Well, ok. But it is also possible to say, now, that a developer--especially one from Miami--is someone who is banking cash from the boom now bust. A developer not holding cash is, today, a former developer. But who knew, in 2004? Those were the best of times, when spin masters for the Growth Machine searched dictionaries and Thesauruses for more and more outlandish ways to persuade people to invest in a market that could never go down. Remember those days?

The Sun Post did a pretty good job: "A developer can also be "a chemical used to render visible the image recorded on a photosensitive surface." The hyperbole has an unintended staying power. In the light of its recent historical fixative—the worst crash in housing, construction and development since the Great Depression—all is illuminated, if only by comparing some of the "Power Developers of Real Estate" to more recent press accounts. Take the example of massive condominiums built by former partnership, Leviev Boymelgreen, in Miami. Long after topping off, the towers sit mostly empty providing a see-thru reminder to anyone going to a Heat game or the Performing Arsht Center from the interstate. Check it out:

Then: “By himself, Shaya Boymelgreen was one of the most prolific developers in New York City. Now, teamed up with Africa-Israel Investments, a company that earned billions in the diamond market and other transactions, Boymelgreen not only continues building in New York, but has announced his intent to invest $1.5 billion in Miami and Miami Beach.” (December, 2004, Sun Post)

Now:"(Boymelgreen) is battling a bankruptcy filing against one of his companies, eviction from his Brooklyn headquarters — a judge ruled Tuesday morning that the proceedings could move forward early next year — and the seizure of a Queens theater in what the buyer calls a “friendly foreclosure.” Condo owners are filing lawsuits over his construction. He has cut his staff to 15 from 200, his spokeswoman says..." (NY Times, Dec 9, 2009)

"U.S. regulators have shut down LibertyPointe Bank, chaired by real estate magnate Shaya Boymelgreen. The bank thus gained the dubious distinction of being the first bank to be shuttered by U.S. authorities in New York in 11 years. " (Haraetz, March 16, 2010)

Then: Edgardo Defortuna

2004 has been stellar for Fortune International, with its ever-present founder and president, Edgardo Defortuna, at the helm. Just last month Defortuna opened the doors to Fortune's iconic tower, Jade Residences at Brickell Bay, co-developed by Hong Kong-based Swire Properties. The $290 million luxury tower is 48-stories tall with more than 300+ residences along Biscayne Bay.

Now:

The sun isn't shining these days on Miami-based Fortune International's real estate portfolio. The third-largest residential developer in South Florida faces the loss of most its $30 million equity in a previous partnership deal with Boston-based Sonesta (NASDAQ: SNSTA) this month when the shuttered Sonesta Beach Resort is sold to Argentine developer Consultatio S.A. The price is $78 million. In 2005, the 37-year-old property at Key Biscayne, FL, a Miami suburb, carried a $120 million price tag. ... In a second setback, Defortuna is named in a $67 million foreclosure lawsuit against the former 12-story Seville Hotel South Beach, which he had hoped to also redevelop. Its other projects include Jade at Brickell Bay and Jade Beach condos. Fortune International's last published sales volume was $563 million in 2007. (9/7/2009, Real Estate Channel)

"The developers didn't get to start building until they had a certain number of contracts signed, so anyone putting down money was good for them,'' Goodkin said. Many "flippers'' closed on their units and now can't sell them, said Michael Cannon of Integra Realty Resources-Miami Inc., leaving completed condo towers with floors of dark windows and empty balconies. The Jade Residences at Brickell is an example, Cannon said. The 338-unit, 48-story waterfront tower, a block from the Brickell Avenue financial district, opened in August 2004 with buyers willing to pay as much as $5 million snapping up all the units. Now, the new owners have listed 112 condos for sale and 17 units totaling $15 million are in foreclosure. Jade Residences developer Edgardo Defortuna, president of Fortune International Realty, didn't return calls seeking comment. (July 20, 2007)

More to come...