Foreclosure lawsuit strikes project across from American Airlines Arena - South Florida Business Journal:

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At one point, Boca Raton-basefd planned to build Paramount Park, a mixed-usw development of 300 condo units, 286 hote l rooms and 10,000 square feet of retail according to itsWeb site. Subsequently, an office and hotel project was RPC Principal and CEO DanielKodski said. Changing residential projects to office and hotel use has been a commonm strategy in South Florida as the residential boom Kodsi said the site has flexible He said the foreclosure filing is part of the negotiation and that he is talking with a buyeer forthe site. This is the third foreclosure lawsuit pendinhg against a projectinvolving Kodsi. Royal Palm 700 an affiliate of RPC, bought the 1.
66 acres at 700 Biscayns Blvd. for $11.7 millionj in 2005, according to It obtained an $18 million mortgage from Overlanfd Park, Kan.-based in 2006, and got a $4 milliojn advance on top of that thefollowing year. The loan was schedulede to matureon Dec. 31. Developmentg never got under way, however, and the site remainsz a parking lot across from the arena wherewthe plays. On Feb. 3, Hillcrest Bank fileds a notice of foreclosure against Royal Palm700 Biscayne, Kodsui and RPC Diversified Holdings. Miami-based attorney Gary who representsHillcrest Bank, said the lawsuitf seeks the $21.2 million remaining on the plus interest and attorney fees.
Kods said he has built about 6 millio square feet of spacethroughout Florida, but he isn'tg starting any new projects becausd of the troubled economy. He added that he has a 10-yead relationship with Hillcrest Bank, and believes it filed the foreclosure lawsuift because it neededliquid capital. Condk Vultures Realty CEO Peter Zalewski noted that the mortgagde balance values the property atabout $309 a squarwe foot. Based on that land cost, which is usuallyt 25 percent of the total project a condo project on that property would have to sell unitsw atabout $1,200 a squar foot, he said.
That’s much more than what nearbyy units are currentlygoing for, Zalewski Even though he called it an site, Zalewski said the property would probably sell for betweenh $100 and $200 a squarer foot. It needs to sit for at least five yeards before developmentdemand rebounds, he “The lender is lookingf at, at least, 30 percent off its loan, and will probablyg write down half of it,” Zalewskoi said. “We’re not in Kansas anymore.” An affiliatw of RPC is facing a foreclosur lawsuit ona $32.2 million loan from for the Sunny Isleas Beach site where it planned to build the Paramounrt Beach condo.
In a previous interview with the South Florida BusinessJourna , Kodsi said he was contesting that lawsuit and keepingy control of the beachfront site. In Broward County, has a foreclosurr lawsuit on an $8 millio n mortgage against a company that includes Kodsi as an investor and owns an undeveloped site inHallandale Beach. Kodsu said he is a minorityu partner in the companies that own the land in Sunny Islew Beach andHallandale Beach.
The Paramount Bay condo, which is another RPC project indowntown Miami, is not facing