Tampa Bay Business Journal by Michael Hinman Staff writer
Breaking News on the outcome of the Auction at the Place in Channelside-Tampa, Fl
The identity of the group in line to buy The Place at Channelside has yet to be revealed, but the purchase price is now public.
The 243-unit complex on Channelside Drive sold for $21.9 million during a bankruptcy court-ordered auction Wednesday, representing about $128,000 each for the unsold 171 units plus 12,930 square feet of retail.
Fisher Auction Co. Inc. and Cushman & Wakefield of Florida Inc. conducted the auction meant to help settle a Chapter 11 bankruptcy filing from Key Developers Group LLC, which had hoped to maintain the property during the reorganization. However, the court instead chose an auction plan offered by KeyBank National Association – still owed $47.8 million – and a minimum bid was set at $17.25 million, or about 24 cents on the dollar.
More than 50 people gathered to participate in the auction, led by Lamar Fisher. Several people were involved in the bidding early on, but after amounts hit $19 million, it was a battle between two potential buyers, creeping up about $100,000 a time until the final amount fell just short of $22 million.
The bankruptcy court still has to approve the winning bid. Closing is scheduled for the end of October. If the bid stands, it will represent a sale of about $92.18 per square foot, well below the estimated original value of $350 per square foot.
“We opened the bidding low enough to get the market excited about it,” Byron Moger, executive director of apartment brokerage services for Cushman & Wakefield, said last month when the auction was first announced. “It won’t have high velocity, but it will have decent velocity, especially at a lower price point.”
Key Developers filed for bankruptcy in March, and joined several other condominium developments in the Channel District that sought bankruptcy protection or simply gave ownership back to the bank since the beginning of the year following the crash of the condominium market.
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The Place at Channelside sells for $21.9M
