Boca Developers negotiating with lenders
South Florida Business Journal - by Brian Bandell and Oscar Pedro Musibay
Boca Developers is negotiating with its lenders to resolve debt issues on several projects that could include Peninsula II in Aventura, according to several sources.
As a result, Deerfield Beach-based Boca Developers may end up relinquishing several projects to the lender, the sources said.
The sales staff at Peninsula II has already been let go, a source said. A call to the number listed for the sales center was answered by a recording.
Calls to Boca Developers principal Brian Street were not immediately returned.
Boca Developers has several residential projects in the works throughout South Florida, including Townsend Place, Mizner Grand and Aragon in Boca Raton; Orchid Beach in Deerfield Beach; New River Las Olas in Fort Lauderdale; Hamptons South and Peninsula I and II in Aventura; Marina Grande North Miami Beach and Biscayne Landing in North Miami.
Biscayne Landing, its largest project, would not be affected, according to a source.
As of August, the company recorded 80 deeds for
the 230-unit Peninsula II project. In October 2005, Boca Developers
signed a $162.9 million mortgage with Key Bank National Association
for Peninsula II.
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Lawsuit crucial to condo buyers trying to
nix deals over 'adverse' changes
Condo buyers trying to get out of their pre-construction purchase contracts soon will have their day in court.
Oral arguments in an important condo lawsuit are taking place Tuesday before the 4th District Court of Appeal in West Palm Beach. The issue: What is the definition of a "material and adverse" change to a condo?
"This case is being watched throughout the state of Florida," said Gary Nagle, the Juno Beach lawyer who filed for the appeal on behalf of his client, D&T Properties.
In 2005, D&T signed a contract to buy a $495,000 pre-construction unit at the Marina Grande condominium in Riviera Beach. But the partnership of two investors later objected to the developer's proposed 36 percent increase in the condo's maintenance fees.
In 2006, D&T filed a lawsuit against the condo's developer, Marina Grande Ltd., a company associated with Deerfield Beach-based Boca Developers. The suit sought to cancel the contract and recover a $99,000 deposit. Under Florida law, buyers can void pre-construction deals if developers make material changes that are adverse to a buyer.
What does that mean? No one knows for sure, but Palm Beach County Circuit Judge Jonathan Gerber took a stab at it. In a July 6 order, Gerber found that if D&T could afford the changes, the changes weren't material and adverse. He ruled D&T could afford the hike, so he ruled in favor of Marina Grande.
Not so fast, says Nagle. In a brief filed with the appellate court, he argues that Gerber's ruling creates an unequal playing field, with wealthy buyers unable to undo their deals and poorer buyers able to get out.
Nagle once had two dozen lawsuits filed by Marina Grande buyers trying to get out of closing on their contracts. Most lawsuits have settled, with buyers getting out of their contracts with about half their deposits back. The rest are on hold, pending the outcome of the case.