The developer of the troubled Everglades on the Bay twin-tower condo project in Greater Downtown Miami has cut a deal to transfer title of the remaining 712-unsold units to the complex's lending syndicate headed by Bank of America.

Mired in bankruptcy since August 2009, the project's developer, Cabi Downtown LLC with manager Elias Cababie, announced the turnover at 1:52 pm Friday in a statement, characterizing the deal as an "agreement in principle."

For its part, Cabi Downtown will serve as the "on-site manager" of the two 49-story towers built on the 200 block of Biscayne Boulevard in Downtown Miami.

"Since our August 2009 filing, we have been working diligently to ensure the best outcome possible for our creditors and residents," Cababie said in a statement. "In reviewing our various options, we chose the route we believe provides the most favorable end result for our residents and suppliers. We have a long history in Florida's real estate market and appreciate the support we continue to receive from our residents and the community."

Everglades on the Bay is a class A project with 849-residential condo units and ground floor retail space anchored by a CVS Pharmacy that was completed in November 2008, long after the South Florida condo market had begun to implode.

The developer was only been able to sell 137 units - or 16 percent of the project - at an average price of more than $375 per square foot through 3 pm, May 28, according to an analysis by CondoVultures.com. 

In the first 10 months of closings, the developer had only closed 86 units - or 10 percent of the project - at an average price of more than $400 per square foot. Since the project has been under court protection, buyers have purchased 51 units - or six percent of the project - at an average price of nearly $325 per square foot, according to the report produced using the Condo Vultures® Official Condo Buyers Guide To Miami™.

"Buyer interest in the Everglades on the Bay project is much deeper than the sales numbers reflect," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Many buyers would consider purchasing units in the project but the slow bankruptcy court process has made that difficult to accomplish. Going forward, if Bank of America prices the project correctly and provides financing to qualified buyers, there is a good possibility that the Everglades on the Bay sales velocity will pick up.

"That being said, there are still more than 700 unsold units remaining."

Financing a condominium in Greater Downtown Miami is a major challenge for the market. In the first quarter of 2010, only 17 percent of the 713 new condo sold by developers involved financing, according to a recent CondoVultures.com report.

Condo financing is one of the topics that will be discussed at the upcoming Condo Vultures® seminar entitled "An Insider's Assessment Of Florida Banking" on June 1 featuring the Florida Bankers Association's President and Chief Executive Officer Alex Sanchez.    

At the Everglades on the Bay, the slow sales combined with the maturity of the $205 million construction loan - excludiing interest, penalities, and other fees - ultimately prompted Cabi Downtown to file for Chapter 11 bankruptcy protection the week of August 17, 2009.

The bankruptcy filing occurred right around the same time that Bank of America filed the initial paperwork Aug. 20, 2009, to foreclose the project, according to Miami-Dade County and federal records.  

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . 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™ , Official Condo Buyers Guide To South Beach™, Official Condo Buyers Guide to Sunny Isles Beach™, 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™.

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