Onyx on the Bay condos in Miami might soon be completed, now that the developer has reached a settlement in bankruptcy court, which would allow the unsold units to change hands.
An affiliate of Miami-based BAP Development Group, developer Biscayne Bay Lofts owns 40 of the 118 condos in Miami at the 28 story Onyx building. The building’s temporary certificate of occupancy has expired and they have yet to secure a final certificate of occupancy from the city.
Corus Bank filed a foreclosure lawsuit against the developer targeting those units in May 2009. Corus sold the loan to an affiliate of Miami-based Hyperion Development Group just before its failure in September. In February, the association for the Miami condos then filed an involuntary Chapter 7 bankruptcy petition against Biscayne Bay Lofts, putting a stop to the foreclosure lawsuit.
Hyperion, the association and the project’s general contractor, MK Contractors, filed a proposed settlement agreement in a bankruptcy court document filed August 4. Hyperion has a $22.3 million claim but can only use $12.5 million of that as a creditor bid at auction to acquire the unsold units in Onyx. The price per condo amounts to $312,500.
The winner of that auction would have to pay a $425,000 settlement to MK Contractors, $200,000 to the association, fund a $250,000 administrative fee reserve for the bankruptcy trustee, acquire a final certificate of occupancy from the city, pay for the maintenance of the Miami condos and withdraw the state court actions.
Biscayne Bay Lofts’ estate would keep the other creditor claims in the Chapter 7 case. Once the bankruptcy judge signs off on the agreement an auction date would then be set.
Contributed by MLR Realty
