Looks like the Chetrit Group is joining South Florida’s condo termination craze, buying out an aging, oceanfront condominium in Hollywood, Fla.
Since last November, the New York-based developer has bought 120 apartments at the 368-unit Hollywood Beach Resort for $17.8 million, averaging $148,155 per unit, property records show.
Chetrit will most likely seek to terminate the property’s condo association, granting the developer complete control over the property and paving the way for redevelopment. The property is on a barrier island in Hollywood.
The move is part of a growing trend among developers. In light of the collapse of the Champlain Towers South condominium last year in nearby Surfside, owners of decaying buildings similar to Champlain are opting to cash out instead of paying for costly repairs. For developers, it’s freed up valuable land along South Florida’s crowded coast line to develop luxury properties.
Further south in Bal Harbour, the Related Group is buying out an oceanfront condominium for approximately $130 million with plans to develop a luxury residential property designed by architectural firm Skidmore, Owings & Merrill. Earlier this year, the Miami-based developer and a partner offered $500 million to buy a condo building in Miami Beach.
But the Chetrit Group still has a long way to go if it wants to terminate the condo, since it only owns 33 percent of the Hollywood resort’s apartments. Condo terminations require the majority of unit owners — often over 90 percent — to sell, making it notoriously hard to achieve.
Besides the condo portion, which also functions as a hotel, the Hollywood Beach property holds a mall and parking lot, which are owned by separate entities, only adding to Chetrit’s herculean buyout. Originally built in 1925, the Hollywood property is at 101 North Ocean Drive, adjacent to Hollywood Boulevard, which leads into the mainland.
Chetrit — led by Joseph Chetrit — is fast at work in Miami too, developing a 6.2-acre mixed-use project after nabbing a $310 million loan last year.
A representative for Chetrit could not be reached for comment. The Real Deal first reported the transactions in Hollywood.
Julia Echikson can be reached at email@example.com.