The developer of the Artécity, a Miami Beach real estate condo project, seeks to make over a whole block on Miami Beach and said it is switching contractors and seeking a loan extension from Corus Bank.
There has been barely any sign of construction work on the 202-unit project, located a couple blocks from the beach along 21st Street, since March, when developer Artécity Park dismissed the general contractor.
The 63 unit converted Miami Beach hotel Artécity Governor, which had 33 buyer deeds issued starting on February 2nd, property records indicate, is the only part hat is completed.
Buyers in that building have brought twelve lawsuits against the project, with most of them settling out of court.
Corus bank, based out of Chicago, gave Artécity a $60.3 million mortgage in 2005. Corus has staked much of its future on $1.7 billion in outstanding mortgage balances and unfunded commitments to South Florida condo projects,
Four of its South Florida condo construction projects had $172.2 million in outstanding balances that were non-accrual, according to the bank's first quarter earnings report. Two of them, it noted, had stopped construction and the developer might not be able to continue.
Apparently construction has begun and should be complete this winter but the new general contractor has not been named.
According to people who live and work nearby, there hasn’t been more than two workers on the city block that encompasses the site. Two residential towers and ground-level retail space are partially completed. The $100 million-plus project is slated for six buildings, and units have been advertised as starting at $275,000.
Artécity needs an $8 million infusion to keep going, and it's not clear whether the developer can raise the money, Phillips said Guerra told him.
Contributed by MLR Realty
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