Included among the loan collateral being auctioned by theCarlton Exchange are: a 148-acre former golf course, once known asthe California Club golf course in Miami-Dade County, which hadbeen approved for 825 detached and multi-family homes; a new, ClassA, 86,000-square-foot-office building in the city of Miami, andthree small hotels on Ft. Lauderdale Beach.

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According to Joe Korbar, managing director for the CarltonExchange, the new Class A office building in Miami has 17,000square feet of retail and 69,000 square feet of office space.Although it was designed as an office condominium, today, most ofthe office space is being rented, while the mortgage being sold ison 54,000 square feet.

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On Ft. Lauderdale Beach, the three separate loans were taken outby one mortgagor on an assemblage of low-rise, older hotels. Thecity of Ft. Lauderdale had approved a plan for a 22-story resort onthe property on April 15, 2008. One of the existing hotels is knownas the Tropic Cay motel.

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There are lots of failed residential condominium conversions,many with 200 units or more, in this group of properties, which,for the most part, are in receivership, says Korbar, who adds thatthey have high occupancy rates as rentals, which makes themcash-flowing assets. "They represent a great opportunity forinvestors who can come in, continue the foreclosure process, whichin Florida can take up to two years, and collect the rents," hesays. "When the market turns and property values stabilize,investors will have an asset purchased at a fairly low cost basis,"says Korbar.

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