The List of Bank Owned Properties Has Commercial Assets in Florida

Photo by Sunshinecity

In South Florida, every list of bank owned properties feature a rise in commercial properties since last year. This has happened primarily because more developers including property owners suffered a shortfall in excess financing from the banks. The other reasons are shortage of tenants, lowering of rents and lastly a shortfall of buyers of properties.

The under construction condominium building at the Miami Beach by the Cypress Bay Development and Ark Developers went in for foreclosure this December by the Compass Bank. This property is due for auction in this February. The developers not only have to pay $4 million to the bank but the Tala Construction Company is also supposed to get an amount of $603,187 from them. Moreover, in October the Ark Developers lost another of their projects as the First Southern Bank pulled down their residential project at the Oakland Park. They had defaulted on paying a loan of $2.7 million.

Recently a Lauderdale based hotel by the sea faced foreclosure along with a commercial project having four residence complexes in South Florida. The El Mar Place Developers had taken loan from the Fifth Third Bank and had signed as agreement of foreclosure, which entitled the bank to sell those properties in Broward County public auction in case the company cannot pay the loan of $3.9 million by March 9.

El Mar Place Developers also have other problems related to foreclosures. another property got foreclosed in October, as it defaulted with its loan repayment to the TransCapital Bank. Even the Landmark Bank has filed a foreclosure notice for a default of $350,000. In the meantime the Bridgeloan Investors foreclosed the marina site of nine-acre by the Miami River. This was primarily due to Miami River Park’s defaulting with a loan of $13.8 million.

The developer purchased the marine site in 2005 from a bankruptcy court for $13 million, with $7 million borrowed from Bridgeloan. It increased its loan in 2007 to $12 million. Other than this site, the developer might also lose the apartment building including the duplexes that were mentioned in the default agreement signed with the Bridgeloan Investors.

Adiba Michele Ash, the chief executive of Simply Marinas, a real estate firm, the marina site is attracting numerous buyers, however, Miami River Park Marina did not want to cut down on the asking price that was $30 million. Charles Tavares of Miami River Park, in an online advertisement, lowered the value to approximately $13 million.

The location of the marina site is suitable for marine service including boat manufacturing. However, the present difficulty in the economy has led the investors to give in to conditions to place the site as a bank owned property.