Riviera bulk condo deal signals shift north by investors

> Posted by Paul Owers on June 10, 2010 11:42 AM

image003-LR.JPG 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 I’d be surprised if the runner goes for third,” he said.