Paramount Bay Condos Up For Auction After $262 Million Foreclosure, But Are They Cursed?

Categories: Unreal Estate
Paramount Bay.jpg
Marc Averette via Wikimedia Commons
Paramount Bay exactly three years ago, shortly after a crane accident killed two workers.
Paramount Bay's luxury waterfront condo was scheduled to open more than two years ago. But stop by the 46-story blue glass building at 2066 N. Bayshore Dr. and you feel like you've wandered onto the set of some post-apocalyptic film.

Bright orange cones guard the lonely front steps. Plastic barriers block the parking lot. One of the last highrises built in Miami before the bubble burst, the gleaming condo is now a ghost town.

After a record $262 million foreclosure last month, Paramount Bay is up for auction tomorrow. But buyer beware: this condo might be cursed.

It wasn't supposed to be this way. When developer Royal Palm Miami Holdings broke ground in 2005, Paramount Bay was billed as the cutting edge of the Magic City's booming real estate industry. Topnotch firm Arquitectonica drew up the plans. "We're not just building condos; we're building lifestyles," Royal Palm President Dan Kodsi said at the time. "We're selling cool, luxury, the future."

Like other Miami developers, however, Royal Palm was also wasting money at a furious clip. The developer spent half a million dollars to turn the historic Wolf House -- featured in the movie There's Something About Mary -- next door into its sales center. And it splashed $200,000 on a celebrity-studded launch party, including ten grand on fireworks.

In 2006, Royal Palm took out a $210 million loan from Chicago-based Corus Bank and private lender iStar Financial. But by 2008, with the condo half-built and the market slumping, Royal Palm was struggling to pay.

Then, in March of that year, a construction crane fell 37 stories from the top of Paramount Bay onto the Wolf House. The seven tons of steel crushed the office, killed two workers, and led Gov. Charlie Crist to call -- in vain -- for greater crane safety legislation.

To make matters worse, Corus Bank went belly-up in 2009 after making too many bad loans.

Finally, last month, iStar Financial won a foreclosure settlement against Royal Palm for $262 million.

"The writing was on the wall," says iStar Senior Vice President Anthony Burns. "It made sense for all parties for the developer to turn the keys back over to the lender."

Burns expects iStar to buy the condo at an auction tomorrow, clearing the way for it to finally open its swanky doors later this year. Despite the deadly crane incident, Burns believes Paramount will live up to its name.

"It was certainly a very unfortunate accident," he says. "But it was obviously a long time ago, and it's a great building in a great location." He says sales should restart this summer.

Neighbors aren't so sure that everything is all right. "I heard that it's got a crack in the foundation," says midtown resident Michael Fiorellino. "Otherwise, why would it still be empty?"

There's no crack, building managers say. Just a gaping hole in logic.

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12 comments
Liberty Village Condos
Liberty Village Condos

It is really bad news that two workers are died in this project and that is why owners are really upset. The projects starting is really bad so I don't think that something good can happen to it.

Moumoa65
Moumoa65

how can i get my 20% deposit back?anyone who know any other peoples who filed a lawsuit or maybe a class action lawsuit to contact me I am from georgia and  my email adress is moumoua65@yahoo.com thanks

Las Vegas Foreclosures
Las Vegas Foreclosures

such a waste of investments, that's what creepy is! owners are really upset about what came up, so as the family of the two workers that died. just stick to the plans, and set aside superstitious beliefs about the building. we're talking about business here, not feng sui stuff. i hope the crack wasn't true, so we can go to auctions..

Las Vegas Foreclosures
Las Vegas Foreclosures

Huge building that unfortunately not done but it accidentally killed two worker. Badluck comes.

Matthew Earl
Matthew Earl

What a god awful looking building that is. Better to tear it down.

Michael Wind
Michael Wind

just put the developer and all those shady real estate people under microscope,then put them in jail,and take all fraudulent money that they kept and raise the standard of living of the poor,some political people as well....

$175 per square foot
$175 per square foot

The bank will take back the building. Units need to sell for $175 per square foot.

SAM_ZAND
SAM_ZAND

Neighbors aren't so sure that everything is all right. "I heard that it's got a crack in the foundation," says midtown resident Michael Fiorellino. "Otherwise, why would it still be empty?"

WHY EVEN PUT THIS COMMENT IN HERE WHEN THE PUBLIC DOES NOT KNOW THE WHOLE STORY

Grant Stern
Grant Stern

This article wins the prize for most idiotic i've seen since you guys re-vamped the paper after the VV took over. What's next? An article about how many dashes of salt to throw over the shoulder? How many roasaries to count or why you should never ever travel on Friday the 13th?

Stick to the facts and you'll be on safe ground with this project. Of course, I heard that the New Times building might have someone smoking crack near its foundation and....

AngryBoy
AngryBoy

Sounds like someone is upset they put down a deposit on this wreck of a building...

What a giant waste of cash, sad that two workers died...

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