A recent news article by the South Florida Business Journal relays that Regions bank has filed new foreclosures against the Miami Beach FL Real Estate projects Terra Beachside Villas and Terra Beachside Villas II completing three foreclosures against BSG Development. The previous foreclosure was filed in October on BSG’s Cabana on Collins project with the developer taking $98.2 million in mortgages from Regions Bank. These three projects were planned and sold within a 3.7 acre construction zone off 6000 Collins just one block from the ocean. These were sold in 2004 & 2005 at a premium and the construction progress seemed to be moving along just fine with punch out work and final finishes before the C.O. & closings. What happened after they repainted the ugly blue front entry cylinder…? A few months ago, I noticed the workers hadn’t been around for awhile and the construction came to a standstill. Apparently, over a dozen contractors have filed liens on the subject properties and this is true proof of the downside to this real estate downturn based on over development, overpricing and smoke & mirrors as these were primarily sold to speculators.
Based on the Article, BSG had $46.4M in loans from Regions with Terra Beachside Villas plus $8M from Miami based Royale World Metropolitan which sold the property to BSG in 2004. Additionally through Regions, $11.6M was secured on Terra Beachside Villas II and $40.2M on the 210 unit project Cabana on Collins.
BSG was cofounded by Sieger and Suarez, of the Miami based Sieger Suarez Architectural Partnership, which has designed buildings such as Fort Lauderdale’s Las Olas River House, Miami Beach’s Portofino Tower and Sunny Isles Beach’s Trump Ocean Grande. The architecture firm is also a defendant in Regions Bank’s lawsuits. SFBJ Article December 8, 2008
I’ve always wondered how they planned to prevent flooding from the basement underground parking garage?! As a matter of fact, Terra Beachside Villas is a great new development if you like the neighborhood and being in the center of two busy streets. Hey it is across the street from the ocean. I see the Terra Beachside Villa property eventually being finished and selling these 2 story townhomes around $300k. Because of the scarred reputation, Terra Beachside will have to change their name like Regions did! Remember Union Planters Bank…? Yes Regions, we didn’t forget you either.
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