Riviera bulk condo deal signals shift north by investors
> Posted by Paul Owers on June 10, 2010 11:42 AM
Miami-based private equity firm Lionheart Capital has completed a $117.3 million bulk deal for the remaining 146 oceanfront condominium units at 2700 North Ocean Drive on Singer Island in Riviera Beach.
The overall price make it the third-largest bulk condo sale in South Florida, says Peter Zalewski of CondoVultures.com, a consulting firm. The other two: the sale of 336 units at Canyon Ranch on Miami Beach for $291.3 million and the $134.7 deal Related Group struck to hand back CityPlace South Tower to Scotia Bank.
2700 North Ocean sold for $263 per square foot the ninth-highest bulk deal on a PSF basis.
Lionheart, which bought the two-tower condo from Catalfumo Construction, is assessing the property and will launch a marketing campaign in the fall, spokeswoman Alejandra Aserna said. The sale follows an aggressive campaign by Catalfumo to unload the condos.
Zalewski said most bulk deals have occurred in Miami-Dade, but investors are moving north to Broward and Palm Beach counties as the supply of available properties is depleted.
Fewer than half of the 2700 North Ocean units 96 have been gobbled up by individual buyers who paid roughly $900,000 to more than $3 million during the real estate run-up.
Zalewski said the new owner likely will average a little more than $1 million on the sale of the units going forward.
To put it in baseball terms, this is probably a single that could be stretched into a double, and Id be surprised if the runner goes for third, he said.