Auction Sale of the Place at Channelside
The Place at Channelside, with 244 condo units, was finally auctioned off for $21.9 million (for 171 of its unsold units). This makes the average price per unit $128,000, for units which were priced between $100-200,000 prior to bankruptcy. Note that the average price per unit in 2004 was $423,000.
The buyer was a special-purpose vehicle, Channelside Place LLC (a Delaware limited liability company). It is a joint venture between Josef Spatz (CEO of Southwest Properties) and Armco Capital. The minimum bid at the auction was set at $17 million, with the participants being Channelside Place LLC (a Florida LLC), JBGL Capital, Mark Hampton, Cantex Equities, Inc.
The problem with an auction sale such as this for unsecured creditors is that the recovery is likely to be very low (or close to zero) after the secured lender, KeyBank, is paid. At the time of bankruptcy, KeyBank held a claim of $48 million.
Condo units not included in the sale:
1301, 1302, 1303, 1305, 1308, 1309, 1310, 1313, 1324, 1326, 1401, 1402, 1405, 1406, 1409, 1410, 1411, 1417, 1420, 1423, 1428, 1506, 1508, 1516, 1519, 1522,1524, 1605, 1606, 1610, 1611, 1613, 1614, 1618, 1707, 1711, 1713, 1714, 1715, 1717, 1719, 1720, 1721, 1722, 1804, 1813, 2301, 2304, 2306, 2308, 2316, 2319, 2402, 2408, 2409, 2415, 2418, 2501, 2502, 2504, 2505, 2506, 2508, 2513, 2514, 2517, 2605, 2705, 2707, 2802, 2803, 2807,2809.
