Condominium Complex in Palm Beach Bought by an International Firm

January 06, 2011 / Russell Legato, Residential Property Analyst

It’s the fourth volume condo acquisition; Dizengoff Group has purchased the remaining 65 condo-units at a condominium complex located at the 2560 South Ocean Drive. The condominium complex was nicknamed the Whitehouse, situated in Palm Beach, Florida and was bought at a 61 percent mark down price.

Condominium Complex in Palm Beach Bought by an International Firm

Dizengoff Group, an Israel based real estate firm, which has a U.S. base in Boca Raton, a city in Palm Beach, paid the lender of the condominium complex— Mercantil Commercebank with $6.9 million, or approximately $96 per square foot.

The acquirement is said to be $11 million less compared to the original mortgage price payable to a bank in Coral Gables, a city in Miami-Dade County, Florida, after it won its foreclosure decision on the condominium complex in 2009 against condominium converter BH Capital Partners.

The transaction closed on December 29, 2010.

BH Capital acquired the 94-unit commercial building, which sits between the Atlantic Ocean and the Intracoastal Waterway, for about $31 million, and sold only 29 condo-units after converting it to a condominium complex.

Most of the units acquired by the company are leased.

At the peak of the real estate boom, the condo-units are sold for $385 a square foot—an average.

In September and November 2009, Dizengoff Group acquired other condo complex and residential condo-units in Jensen Beach, and in central Palm Beach Florida.

According to Dizengoff’s U.S. regional manager, Ronen Saban, the company likes the location of the property because it’s one of Florida’s prime locations.

All units in the condominium complex have private balconies with the ocean and Intracoastal views, while residents have an easy access to the beach.

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