Bahrain Buyer Grabs Lender-Owned Condo for Half Price

JUPITER, FL-A lender-owned beachfront property in Jupiter just sold to a foreign investor for $9.75 million, or $812,500 per unit. 3000 Ocean Dr., a 12-unit condo, was completed in 2010 at a cost of $18 million.

CBRE marketed the property for sale on behalf of the lender, West Suburban Bank, after it foreclosed on the property in April 2011. The buyer, a private investor out of Bahrain, purchased the asset under the capital group MHS Real Estate Capital, LLC. CBRE senior vice president Richard Tarquinio, vice chairman Robert Given and director of operations Calum Weaver, worked together to broker the deal.

“We’ve done more than 30 of these fractured deals,” Weaver tells GlobeSt.com. “This one really was different because of the quality, the location and the large-sized units. From a price per unit standpoint, 3000 Ocean Dr. has to be among the highest that we’ve seen out there.”

At seven stories tall, 3000 Ocean offers appeals to buyers who want exclusivity as it has just two units per floor. Six of the units offer 3,870 square feet of interior space and 1,199 square feet of terraced ocean views. The other six units offer 3,770 square feet of interior space and 531 square feet of terraced ocean views. The condominium complex neighbors a 101-acre nature preserve and is free from the risk of future encroaching developments, offering residents expansive unobstructed views.

“There are no other developable sites in Jupiter just off the beach,” Tarquinio tells GlobeSt.com. “Since nine of the units were not completed and the new owner is not in a big hurry to sell to end users, he can actually wait until the market improves even more. There is already a higher demand in the Jupiter market than in other areas of Palm Beach.”

Drilling down into the financials, 3000 Ocean sold for a $212.70 price per square foot for air-conditioned space (not including the balconies). Within the past year there have been 34 comparable condominium sales in the area with an average sale of $1,182,000 or $378 per square foot. The average asking price for comparable condominiums in the surrounding area is $1.4 million, or $460 per square foot.

“We got well over 100 confidentiality agreements on 3000 Ocean,” Weaver says. “We also received many offers. As a statement to the market, there remains plenty of capital that is seeking these opportunities. These foreign buyers paid cash.”