The Cushman & Wakefield South Florida Multifamily Team of Robert Given, Errol Blumer, Michael Mulkern and Robert Kaplan Named Exclusive Marketing Advisor Through a Court-Appointed Manager
The Cushman & Wakefield South Florida Multifamily Team of Robert Given, Errol Blumer, Michael Mulkern and Robert Kaplan was selected to market the property on behalf to 160 Royal Palm, LLC, through its court-appointed manager, former Delray Beach Mayor Cary Glickstein.
The Palm House Hotel is a 79-unit hotel-condominium located on a 1.38-acre site at 160 Royal Palm Way on Palm Beach Island. The 82,648-square-foot project was initially developed in 1961 and expanded in 1981. In 2006, significant renovations were started at the property, but were halted in 2014 due to litigation among various parties. The property is currently vacant.
The Palm House Hotel is located less than one block from the Atlantic Ocean in one of South Florida’s most prestigious zip codes (33480), which boasts an average adjusted gross income of $1.25 million. Residential sales in the immediate vicinity regularly exceed $1,000 per square foot.
“The opportunity to own and operate a condo-hotel or hotel in one of the wealthiest and most-desirable submarkets in the nation has attracted major institutional and private client interest alike. We anticipate many more of these high-profile groups to be present at the courthouse for the official auction as well,” said Given.
Added Blumer, “The Palm House Hotel represents a truly rare opportunity for investors and developers to obtain and put their stamp on a trophy asset in one of the world’s most recognizable and desirable locations.”
As a Section 363 bankruptcy sale, the Palm House Hotel is offered free and clear from any liens through a bidding and auction process approved by the bankruptcy court. The process began recently with the selection and approval of a stalking horse bidder — a qualified bidder who establishes a floor purchase price in the auction. The stalking horse asset purchase agreement was executed with a purchase price of $32 million.
Pursuant to court-approved bid procedures, opening bids for the auction sale will start at $32.5 million and increase in $50,000 increments, or as otherwise determined by the debtor prior to or during the auction process. To be a qualified bidder for the auction sale, potential bidders must submit a 10% escrow deposit, along with the completed Asset Purchase Agreement and summary of financial capabilities, no later than 5 p.m. on November 9, 2018.
The Cushman & Wakefield team will then conduct an auction to satisfy the requirement that the debtor obtain the highest and best price for its asset. The auction is scheduled for 10 a.m. on November 16, 2018, in Courtroom B of the United States Bankruptcy Court located at 1515 North Flagler Drive in West Palm Beach.
Following the auction sale, the transaction documents will be submitted to the bankruptcy court for approval. Once a court order approving the sale is entered by the court, there is a 14-day objection period whereby interested parties may appeal the court order approving the sale. After the objection period has expired, the sale is final. The Cushman & Wakefield team anticipates closing to occur in late November or early December.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.