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South Beach 90-Unit Condo Bulk Deal Trades

SOUTH BEACH 90-UNIT CONDO BULK DEAL TRADES

A newly created Miami real estate company has acquired the construction loan on the remaining 90 units with 155,000 square feet in the new Caribbean Miami Beach oceanfront condominium project in South Beach.

The recently incorporated 3737 Caribbean Partners LLC, with Leon and Alfonse Melohn of Melohn Properties in New York City and Michael Konig, bought the remaining balance of a nearly $128 million construction loan for reportedly between $50 million and $55 million from the troubled Chicago lender, Corus Bank, according to the South Florida Business Journal.

The developer, Caribbean Group Owners, of the South Beach condo project is a partnership between Christa Development and Bluerock Real Estate. A spokesman for the developer told the South Florida Business Journal that the project had been returned to the bank although a deed transfer has not yet been recorded in Miami-Dade County, according to CondoVultures.com.

“If the Caribbean’s purchase price is $55 million or less, the buyer has acquired 90 units in South Beach for no more than $355 per square foot,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate company Condo Vultures® LLC. “Before the bulk deal, 13 units had traded for an average of $848 per square foot. We see no reason why the new owner could not immediately flip these 90 units on an individual basis for between $450 to $550 per square foot.”

The Caribbean Miami Beach marks the 13th bulk deal to close in South Florida since July 2008. Bulk buyers have acquired a total of 766 units with 886,000 square feet for $195 million, or $220 per square foot. Eleven of the 13 deals have occurred in Miami-Dade County, according to the Condo Vultures® Bulk Deals Database.

In the Caribbean, the new owner gets a two-tower project located between South Beach’s Art Deco District and the newly upgraded Fontainebleau resort.

The Caribbean is a combination of a completely retrofitted six-story Art Deco building with 35 units and a new 19-story glass tower with 68 units. The neighboring properties are a combination of new towers and old residential buildings in serious need of renovations.

“A bulk buyer recently purchased 10 units for $405 per square foot in the Fontainebleau and immediately retraded five of the units for $657 per square foot,” said Zalewski. “We like the bulk buyer’s chances going into what is shaping up to be an interesting winter tourism season.”

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com . Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ , Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ , and the First-Time Home Buyers Guide To South Florida™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.