New York-based hedge fund and Miami investment group buy bulk of Catalfumo condo units

 
By Alexandra Clough
Palm Beach Post Staff Writer

Updated: 7:00 p.m. Tuesday, June 8, 2010
Posted: 6:41 p.m. Tuesday, June 8, 2010
 

Elliott Associates, a prominent New York-based hedge fund, and OZ Holdings, a private investment group in Miami, are part of a group that bought unsold units at Dan Catalfumo's 2700 North Ocean condominium on Singer Island in Riviera Beach.

Post file photo

The bulk purchase of units at the luxury, twin-tower condo involves the assumption of an $86 million mortgage owed to Fifth Third Bank, according to Palm Beach County records. An additional $25 million in equity also was paid to Catalfumo as part of the deal, according to Mark Pordes, president of Pordes Residential in Aventura.

Pordes and his sister, Mindy, introduced the parties and handled the sale of 146 unsold condo units in the 242-unit condo and hotel-condo project. None of the units sold were condo-hotel units, Pordes said.

Founded by Paul Singer in 1977, Elliott Associates is a $6.9 billion hedge fund. Flagler Group, a Miami real estate firm specializing in condo-hotel units, also was part of the purchase group.


                

Developer Catalfumo sells off remaining units at Singer Island condo

Post file photo
       The 2700 North Ocean towers were decorated for the 32nd American 
Red Cross Designers' Show House in 2008. It's unclear what the future 
holds for 2700 North Ocean now that Catalfumo no longer is involved in 
the project.
 
The 2700 North Ocean towers were decorated for the 32nd American Red Cross Designers' Show House in 2008. It's unclear what the future holds for 2700 North Ocean now that Catalfumo no longer is involved in the project.
 
By Alexandra Clough
Palm Beach Post Staff Writer

Updated: 7:15 a.m. Tuesday, June 8, 2010
Posted: 4:40 p.m. Monday, June 7, 2010

Builder Dan Catalfumo has completed the bulk sale of about 150 unsold units at his luxury 2700 North Ocean condominium on Singer Island in Riviera Beach.

The buyers include a Miami development group, the Flagler Group, and an unnamed New York hedge fund, real estate sources said. The deal closed on Friday.

Ricardo Dunin, president and founder of the Flagler Group, declined to comment today . "Our publicist will contact you tomorrow," Dunin wrote in an e-mail.

The purchase price of the condo units could not be determined immediately, and the sale has not yet been recorded in Palm Beach County records. Randall Greene, vice president of development for Catalfumo, said the company would not comment. Dan Catalfumo was out of town and unavailable for comment today .

But people familiar with the deal said the sale frees Catalfumo, a high-profile Palm Beach Gardens developer, from any debt on the project. Palm Beach County records show Catalfumo borrowed $190 million from Fifth Third Bank of Cincinnati to build the luxury project. The mortgage was recorded in April 2006, according to county records. Word is the new buyer will assume the remaining $80 million left on the mortgage, which has been paid down through condo sales.

A Fifth Third bank spokeswoman did not immediately return a phone call seeking comment.

The twin-tower 2700 North Ocean condominium is part condo, part hotel suites. About 100 of the 27-story's 242 units are hotel suites, dubbed resort units by Catalfumo. It could not be determined how many condo units, and how many condo-hotel suites, were part of the sale.

The bulk sale follows an aggressive television and print ad campaign blitz featuring Catalfumo personally hawking the oceanview condos at discounted prices. "I would rather offer my next buyers a great price discount than pay interest to the bank," Catalfumo said in the ads.

On the condo's website, Catalfumo claims the promotion netted $34 million worth of sales.

Units at the luxe condo range in price units from just under $1 million to more than $3 million. Penthouses and tower suites also are available, with prices up to the $7 million range.

It's unclear what the future holds for 2700 North Ocean now that Catalfumo no longer is involved in the project. But the Flagler Group seems well-versed in the condo-hotel arena. Flagler acquired the Mutiny Hotel in Coconut Grove and spearheaded its transformation into a luxury condominium-hotel resort. Dunin also developed the neighboring site into the Mutiny Park, now known as the Sonesta Bayfront Hotel. Recent high-profile projects also include The Meridian, an ultra-modern building of 111 luxury condominiums in South Beach.