Related Group sells 101 units for $27M - South Florida Business Journal:

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The simultaneous transactions wererecorded Dec. 31 in Miami-Dade Countt Circuit Court. Units in the beachfron t condo conversion sold for an averagewof $268,000, or about half of what Relatesd sold 276 units for in 2007. With the clockm ticking on a $173 million mortgager that Related Group’s signed with in late selling units quickly could bea priority. A Related spokeswoman did not immediatelg return a calland e-mail for comment. The buyefr is Hollywood-based , whichu lists former Miami Beach City Manage Christina Cuervo as registered agent andThomas F. Daly as president. Daly also headzs the Miami Beach-based Development Grouop of South Florida.
The bulk sale was done in conjunction with a firsty money mortgage in which Relatedloanedd $7.27 million, representing about 27 percent of the amount it paid for the 101 The agreement included a pric e target the borrower would have to meet for each unit to securre a mortgage release from The release totaled $26 million – $1 millioj less than what HH Condo Investments paid for the With bank funding for bulk condo purchases scarc e and appraisals difficult, the financing must have been needesd to make the deal in New Harboufr House work, Condo Vultures Realty CEO Peted Zalewski said.
“The buyer must have had Related in an interestinyg position and the buyer went in forthe kill,” he “Even if the buyer can’t resell them, then theier exposure isn’t that great becausr of the mortgage.” Related Groul CEO Jorge Perez helped close another bulk deal in one of his buildingsd last year. He launchede a buying fund that made two deals inthe 528-unir 50 Biscayne, which Related built in partnership with Atlanta-based . That bulk deal sold out the projectt and closed outits loan. The 50 Biscayne buyinfg fund, , paid $6.1 million in May for 26 unitds – an average of $236,294 a unit and $30.3 million for 120 units an averageof $252,504 a unit.
The two bulk sales are a sign that Related Group want s to get its money out of olderrprojects – even if it means breakinhg even – and concentrate on its signature and 500 at Brickell, Zalewski “The strategy,” he said, “isz self-preservation.”