Paramount Bay Granted Fannie Mae Approval
April 1, 2011 by Lucas Lechuga
Sales haven't quite yet begun at Paramount Bay but the development was granted Fannie Mae approval last week. The conditional approval expires on September 25, 2011 which leads me to believe that we should expect sales to launch very soon. Paramount Bay, located in the Arts District of Miami at 2066 North Bayshore Drive, was developed by Royal Palm Communities and completed in 2009. The construction loan was originally held by Corus Bank which was later seized by the FDIC on September 11, 2009. Starwood Capital Group then acquired Corus' real estate assets on October 2, 2009 by beating seven groups with a winning bid of $554 million. Paramount Bay was one of three condo developments residing in Miami that were part of the real estate portfolio acquired in that auction. Personally, I'm very excited about Paramount Bay and can't wait to tour it again. I toured Paramount Bay in 2009 but the building wasn't quite ready and I hear that Starwood has invested lots of additional money into the building over the past three months to really blow everyone away. No word yet on what pricing will be like but I'm expecting it to be close to that of 900 Biscayne Bay.
Nice. I am looking forwrd to it. More people living in Arts district = More ladies in the park = More dating opportunities 🙂
Condo leasing activity up, here are the number of leases and rates for the first three months of each year and the average monthly rental rate:
2011: 915 units @ $2,190
2010: 850 units @ $1,820
2009: 770 units @ $1,750
2008: 600 units @ $1,850
Wouldn’t most buyers prefer 900 Biscayne to Paramount if they’re both priced the same?
Paramount on the Bay loses $262M foreclosure:
http://www.bizjournals.com/southflorida/news/2011/04/12/paramount-on-the-bay-loses-foreclosure.html
Foreclosure of Paramount will be interesting. As with some other condo buildings, a well heeled buyer could purchase at a deal and not be forced into a fire sale near term. While I prefer Brickell or the museum park areas, a brand new luxury building with direct waterfront access would be very intriguing.
Lucas,
Isnt Paramount part of the loan portfolio Starwood acquired from the FDIC? How does this foreclose action affect them and all the upgrades they’ve done in the recent months to the property?
George,
That’s what I thought. I’m puzzled by the foreclosure just as much as you are. I heard that Starwood and iStar partnered a while back on Paramount Bay but the article makes it sound like iStar is now the sole entity in control of Paramount Bay. I guess time will tell how this foreclosure action will affect pricing because I’m pretty confused by these events.
The Foreclosure and then auction is standard procedure. The project has been under court ordered receivership during which time the lenders I-Star and ST Residential have been planning for new sales. After the auction…which most likely will be won by the lenders the core of the plan to reposition and market the project will be started.
It is implausible that an invetsor would come in and pony up more than the $230MM+ loan balance and also be prepared to fund the operating costs and further improve amenities. The lenders are in the best position and are ready to move forward.
George F,
Thanks for the clarification!!
Stalled Paramount Bay Retools for Opening