looks like Chetrit Group joins the condo termination craze in South Florida, buying up an aging oceanfront condominium in Hollywood, Florida.
Since last November, the New York-based developer has bought 120 apartments in the 368 units Hollywood resort town for $17.8 million, or an average of $148,155 per unit, according to property records.
Chetrit will most likely seek to end the property’s co-ownership association, granting the developer full control over the property and paving the way for redevelopment. The property is on a barrier island in Hollywood.
This decision is part of a growing trend among developers. In light of last year’s collapse of the Champlain Towers South condominium in nearby Surfside, owners of dilapidated buildings similar to Champlain are opting to cash in instead of paying for expensive repairs. For developers, it frees up valuable land along South Florida‘s crowded coast to develop luxury properties.
Further south, at Bal Harbour, the Associated group is to buy a beachfront condominium for about $130 million with plans to develop a luxury residential property designed by an architectural firm Skidmore, Owings and Merrill. Earlier this year, the Miami-based developer and partner offered $500 million to buy a condominium 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% of the apartments in the Hollywood complex. Condo terminations force the majority of unit owners – often over 90% – to sell, which makes it notoriously difficult to pull off.
Besides the condo portion, which also operates as a hotel, the Hollywood Beach property has a shopping center and parking lot, which are owned by separate entities, which only adds to Chetrit’s herculean takeover. Originally built in 1925, the Hollywood property is at 101 North Ocean Driveadjacent to Hollywood Boulevard, which leads to the mainland.
Chetrit – led by Joseph Chetrit – is also rapidly working in Miami, developing a 6.2-acre mixed-use project after finding a $310 million loan Last year.
A representative for Chetrit could not be reached for comment. The real deal reported for the first time dealings in Hollywood.
Julia Echikson can be contacted at [email protected].