Fannie Mae seeks foreclosure on South Beach apartment complex

This office complex in Lauderhill is targeted for foreclosure.

Brian Bandell
Senior Reporter- South Florida Business Journal

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A South Beach apartment complex could be seized by Fannie Mae.

The government-controlled company filed a foreclosure lawsuit on March 25 against 1775 James Ave. Corp. over the property at the same address. It consists of 46 units in 15,557 square feet and was built in 1948.

It was last purchased for $2.5 million in 2003. Its mortgage from Washington Mutual was last modified at $3.2 million in 2007 with Jose Comesana signing as president of 1775 James Ave. Corp. After Washington Mutual failed, the Federal Deposit Insurance Corp. assigned the mortgage to Fannie Mae.

Miami attorney Gary M. Freedman, who represents Fannie Mae in the lawsuit, could not be immediately reached for comment.

Lauderhill office complex faces foreclosure

An office complex in Lauderhill could be taken by a Houston investor through foreclosure.

A foreclosure lawsuit was filed by 4300 North University LLC, which is managed by Zachary Segal in Houston, on March 26 against Executive University Courts, an affiliate of Milbrook Properties in New York. It targets the 113,063-square-foot office complex at 4300 N. University Drive.

According to Trepp LLC, the property was secured by a commercial mortgage-backed securities (CMBS) loan of $5 million that had been in maturity default since 2010. The loan was sold in January at a loss of $2.38 million to the mortgage investors.

Trepp reported that the building was recently 60 percent occupied, with the biggest tenants building Strax Rejuvenation at 22,400 square feet and T.K. Labs at 4,500 square feet.

The building had been appraised at $5.5 million in 2012, so it’s not clear why the CMBS trust took such a large loss on the note sale. It was bought for $8.4 million in 2005.

Brian Bandell covers banking, finance, health care and education. Get the latest banking industry news here.

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