(Source: South Florida Business Journal)
In what is being termed as a “friendly foreclosure,” The Related Group is handing over control of its new 420-unit CityPlace South Tower in West Palm Beach to a consortium of partners led by Toronto-based Scotia Capital.
The lenders and the project’s developers, CityPlace South Tower, LLC, an affiliate of The Related Group, reached an agreement in which the new partnership will acquire title to all unsold units in the project.
Scotia Capital, a subsidiary of The Bank of Nova Scotia, filed a foreclosure lawsuit against CityPlace South Wednesday in Palm Beach County Circuit Court. The complaint was based on the $134.7 million mortgage the bank and its partners gave the developer in 2006.
The project is 100 percent complete and all construction debts and obligations have been satisfied, Jorge Perez, chairman and CEO of the Miami-based Related said in a press release.
Read Brian Bandell and Darcie Lunsford’s full article “Related’s CityPlace South Tower in ‘friendly foreclosure‘” in the South Florida Business Journal (July 1, 2009).