(Crystal Proenza is associate editor of Real Estate Florida.)
WEST PALM BEACH, FL-Bank of America is proceeding with foreclosure of a mortgage to locally based Premier Developers. According to the lawsuit, the development firm went into default on an $18-million acquisition and construction loan made by the bank for a waterfront condominium project here called Gramercy Court. Principals at the developer's firm were not available for comment on Friday.
"They were in default and we tried to work with them," Shirley Norton, a spokesperson for Bank of America, tells GlobeSt.com, adding that she cannot discuss any other details at this time. Lee D. Mackson, the Shutts & Bowen LLP attorney representing Bank of America, tells GlobeSt.com that the bank does not comment on pending litigation.
Premier obtained the loan in January 2006, according to the suit filed, to build Gramercy Court, a 168-unit luxury condominium complex on North Flagler Drive across from the Intracoastal Waterway with units ranging from $300,000 for one- and two-bedroom units to $2 million three and four-story townhomes. Amenities at the six-story structure were set to include a game room, lounge, a courtyard the size of a football field, rooftop pools, a sunset deck and tennis courts. The developer, who reportedly has not given up on the plans and will try to eventually build the project, failed to repay Bank of America by the loan's Jan. 31 maturity date after which the bank sent a default notice to Premier on Feb. 28, according to court documents.
"We still love the area and location," Bradley Deckelbaum, principal of Premier, told the Daily Business Review, a publication related to GlobeSt.com through common ownership. He said less than 20% of the units at the planned development have been sold, and that the deposits received are being held in escrow accounts. "We are trying our best to work with the bank," he told the Daily Business Review. "We've been setting ourselves up to be in the best position we can be when the housing market and national economy comes back to some level of normalcy."
In its lawsuit, Bank of America asks that the court of Palm Beach County appoint a receiver of the property to preserve, protect, complete and operate the improvements during the time of the trial. The document also asserts that as a result of the defaulted mortgage, the property be sold at public sale.
Premier has been in business for four generations and has successfully completed luxury condos projects in South Florida, including Bellaria in Palm Beach and La Rive in Fort Lauderdale. The company claims over $1 billion worth of homes to its credit.
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