(Crystal Proenza is associate editor of Real Estate Florida.)
FORT LAUDERDALE, FL-Scott Brenner, president of locally based Brenner Real Estate Group, has been appointed receiver for three residential properties in South Florida. Brenner says the opportunity serves to diversify the firm's business during a tenuous economy. Experts believe more such companies will seek to expand into receivership in the coming months as the downturn continues.
The properties received by Brenner include Winston Pointe, a North Lauderdale residential townhouse complex under construction located at 1353-1409 Avon Lane. Mercantile Bank is foreclosing on the development, owned by Innovative Concept Homes LLC, which currently has 29 of 46 units complete. Fifth Third Bank is foreclosing on a 28-unit condominium under development owned by 63 North Beach LLC. Brenner has been named receiver for the property, located at 63rd Street and Indian Creek Drive in Miami Beach. The last property, Villas Santorini, owned by Bella Vista Development, is being foreclosed on by Fifteen BV LLC. Eleven of the 34-units in the townhouse development at 4652-4665 Santorini Drive in Lake Worth are complete, with six units sold and occupied. Brenner will be responsible for maintaining and managing each of the received projects.
"We have also handled receiverships in major Florida markets including Jacksonville, Tampa and Orlando. We are eager to lend our experience to opportunities like these around the state," Brenner, who could not be reached Wednesday, said in a release. He explained that his firm plans to concentrate on adding value and maximizing potential of the properties during the legal process.
Jack McCabe, CEO of McCabe Research & Consulting LLC in Deerfield Beach, says a tremendous amount of receiverships are occurring in the current real estate environment, involving both residential and commercial projects, as more and more banks try to maximize return on what he says are considered failed assets. "Some banks' strategy is to hire workout groups to either complete construction, manage, operate, sell or auction the properties," McCabe tells GlobeSt.com.
There are also entities looking to buy notes and do foreclosure themselves, preferring to handpick properties instead of going through bidding process, McCabe explains. "We will see a lot of developers trying to do workouts" rather than build their own projects, which is the case with Brenner, he says.
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