FT. LAUDERDALE, FL-BH3 won the bid for 175 unsold units at Trump Hollywood. BH3, along with investment funds managed by King Street Capital, paid $160 million to acquire the distressed notes the project secured in 2010.
Trump Hollywood sits on a five-acre site and features two- and three-bedroom condos ranging from 2,070 to more than 7,000 square feet, all with private elevator access and panoramic ocean, Intracoastal and city views from private oversized terraces. It’s the most luxurious building on Hollywood Beach.
Miami-based Stroock & Stroock & Lavan represented BH3 in securing title to the units via a Broward Circuit Court online auction last week. BH3 used the plaintiff max bid feature on the Broward County Court’s auction site to submit a maximum bid of the judgment amount before the auction commenced. The winning bid was $100.
“This deal says that Banks like HSBC are willing to sell notes,” Ron Kriss, chair of Stroock’s distressed real estate practice, tells GlobeSt.com. “A year ago everybody was banging their heads against the wall because they couldn’t do deals. Now there are more deals.”
In January, BH3 and Trump Hollywood developer Related Group agreed to a $173.29 million foreclosure judgment, creating the auction opportunity. Related agreed to help BH3 in marketing and managing the condominium units located at 2711 South Ocean Drive. Related was not immediately available for comment.
“Related Group was willing to give up the property because it benefited them to get the debt off the balance sheet so the company could move forward with more positive plans,” Kriss says. “People who are on the ball like BH3 are still able to make good deals that are hopefully going to see a good profit. It’s a nice American dream story.”
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