FORT LAUDERDALE, FL-Miami-based Lionheart Capital purchased the remaining 146 units at the 242-unit 2700 North Ocean Drive condominium on Singer Island, a wealthy enclave at the northern end of Palm Beach County, in a joint venture. The purchase price was approximately $120 million. Lionheart’s joint venture partner is Elliott Management Corp., a New York-based private investment fund with over $16.9 billion in assets under management. The sale closed on June 4.

The seller, prominent Palm Beach County developer Daniel Catalfumo of Catalfumo Construction, completed the development in January 2008, but was only able to sell 96 units, which ranged in price from $900,000 to over $3 million, according to the developer. The sale of the remaining units at the oceanfront development yielded an average of a little over $800,000 per unit. Of these units, 54 were condominium-hotel units. The average size of units at the development is over 3,000 square feet.

Catalfumo was not in foreclosure on the property, but by selling the units at 2700 North Ocean Drive in bulk, he will be able to pay off some of his debt. In 2006, he took out a mortgage from the Fifth Third Bank of Cincinnati for $190 million. Of the $120 million purchase price, $86 million was for the assumption of what is left of that loan. In addition, $31 million was paid in cash to Catalfumo and $3 million covered closing costs, fees and commissions, according to publicist Alejandra Serna.

Lionheart Capital is a joint venture between the Miami-based Flagler Group and Oz Holdings, a New York City-based investment group. The joint venture was formed for this sale, says Serna, but the partners intend to do more condominium purchases like this one. The principals at Lionheart are Riccardo Dunin, president and founder of Flagler Group and managing partner of Lionheart, and Ophir Sternberg, who is the managing partner at Oz Holdings, as well as a managing partner at Lionheart.

Dunin is an experienced hotel-condo developer. His group bought the Mutiny Hotel in Miami’s Coconut Grove, transforming it into a condominium-hotel resort, and he developed the neighboring site into the Mutiny Park, now known as the Sonesta Bayfront Hotel. 

The average of about $250 per square foot for the 2700 North Ocean Dr. condominiums is a good deal for condo-hotels, says Guy Trusty, president of Lodging & Hospitality Realty in Coral Gables, FL. That is comparable to units in downtown Miami, he says. But the per unit price is less attractive, he says. Few buyers would want a 3,000-square-foot condo-hotel.

The condo-hotels at the Singer Island property are “resort units” according to the new owners of the property. They have no minimal rental period and individual owners are responsible for renting and managing them.

A luxury development, the 2700 North Ocean Dr. condominium was designed by architect Robert W. Swedroe, with two, 27-story towers offering panoramic views from glass-framed terraces. Expansive lobbies and private elevators, state-of-the-art fitness centers, two cinema-style theaters, a heated lap pool and beach cabanas help to set the tone.