Judge approves sale of condos in Costa Hollywood Beach
The troubled Costa Hollywood Beach Resorts lender acquired the property’s unsold condos, averting a bankruptcy auction.
A federal bankruptcy judge upheld the plans last week as part of the Chapter 11 owner’s exit plan from bankruptcy, according to the South Florida Business Journal. The lender, Madison Realty Capital, is paying $ 43 million for the units.
No qualified bids for the 52 unsold units and common areas of the condominium-hotel at 777 North Ocean Drive in Hollywood arrived before the August 13 deadline, resulting in the acquisition.
The 274 units previously sold to investors were not included in the deal, according to the South Florida Business Journal.
The station filed for chapter 11 bankruptcy protection in September, five months after New York-based Madison attempted to seize the property. Defendants in the lawsuit include an entity called Costa Hollywood Property Owner and Managing Member Moses Bensusan, who also served as the loan guarantor.
Madison loaned the development group $ 70 million in 2016. The foreclosure Lawsuit against the development group and its principal alleged that the group was in default of $ 41 million. [South Florida Business Journal] – Wade tyler millward