South Florida Projects to Become Foreclosure Properties
The crisis of foreclosure properties not only downed developers of purely housing properties; it also downed developers of mixed-use properties.
South Florida developer Sky Development has been notified by three lenders that two of its real estate projects will become commercial foreclosure properties.
The projects that could become foreclosure properties are the medical complex project in Pembroke Pines and the Aventura mixed-use development. Sky planned to develop the properties together with Aventura Land Trust.
CSE Mortgage filed a foreclosure case against Aventura Land and Sky Development in the circuit court of Miami-Dade County on April 29. The action to turn the projects into foreclosure properties was based on a $14 modified mortgage that was due last July 2008 but was extended to September 2008.
The glut of forclosure properties that pushed down property prices put Aventura and Sky Development’s sales estimates and expectations into disarray.
Aventura Land is also the respondent of a foreclosure case filed by HRCBJS Partners in connection to a $13 million loan.
According to the complaint filed by CSE’s lawyers, Aventura Land Trust’s debt has increased to $14.9 million after the addition of interest and fees. CSE Mortgage hired Cary Lubetsky of Miami-based law firm Krinzman, Huss and Lubetsky as its lawyer for the foreclosure filing.
The mixed-use development was designed to feature 53 townhomes, 51 apartment units, office spaces, retail spaces, a restaurant, a bar, a cocktail lounge, a hotel, a health spa, a gym and a bowling alley.
Sky Development planned to start building in late 2007, but its web site never announced any notice of start of construction.
In another action to turn Sky Development’s projects into foreclosure properties, Alabama-based Colonial Bank took Park Plaza Executive Center to court in connection to the Pembroke Pines office building project. Sky Development borrowed $8.3 million in 2007, and later made it an $8.9 million loan in May 2008.
According to the foreclosure filing, the outstanding Colonial Bank debt owed by Park Plaza Executive Center was $9.1 million, which includes the mortgage and another promissory note.
Park Plaza Executive owns a site measuring 9.8 acres east of North University Road, which is being leased by Memorial Healthcare System.
According to Sky Development’s web site, it has ten ongoing housing and commercial projects in the midst of actions to turn projects into foreclosure properties.
