Federal regulators have seized the South Dakota bank foreclosing on a nearly $12 million oceanfront condo development site in Greater Miami Beach.

BankFirst of Sioux Falls, S.D., was shut on Friday, July 17, less than a month after the 14-year-old institution filed to foreclose on a 1.1-acre site development site located between Collins Avenue (State Road A1A) and the Atlantic Ocean.

A 43-story tower featuring one unit per floor is proposed for the site located in the northeast Miami-Dade County city of Sunny Isles Beach, according to a CondoVultures.com article.

The Federal Deposit Insurance Corp. estimates losses of $91 million from BankFirst's failure. Prior to shuttering the two-branch bank with assets of $275 million, regulators entered into a purchase agreement for BankFirst's $177 million loan portfolio to be acquired by Beal Bank Nevada in Las Vegas.

BankFirst filed the foreclosure action, also known as a Lis Pendens and/or Notice of Default, in Miami-Dade Circuit Court on June 17 seeking repayment of $11.7 million on a predevelopment loan originated in 2006, according to the Condo Vultures® Foreclosure Database™.

Originally purchased for $9 million, or $181 per square foot, in July 2001, the 49,830-square-foot development site is now assessed for tax purposes at $15.7 million, or $315 per square foot, by Miami-Dade County. BankFirst's loan was made at $235 per square foot.   

BankFirst is the first South Dakota financial institution to be seized by regulators this year, and one of 57 banks to shut nationally in 2009. An additional 25 institutions were shuttered in 2008.

Only five Florida-based institutions have been closed since 2008. BankUnited's seizure in May 2009 was the only South Florida institution to be shut.

Industry watchers expect Florida's ranking to climb in the months ahead given the FDIC's plans to open a 500-person office for bank seizures and asset sales in mid-September in Jacksonville.

"Given the residential real estate meltdown in Florida and the fact that 301 banks are headquartered there, it is surprisingly to see that only six percent of the 82 bank failures have involved institutions based in the sunshine state," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures®.

BankFirst's foreclosure action isn't the first filed against an oceanfront development site in Sunny Isles Beach.

A few miles south on Collins Avenue, a 1.4-acre oceanfront property zoned for a high-rise condo tower in Sunny Isles Beach is scheduled to be auctioned off in less than 60 days to the highest all-cash bidder, according to CondoVultures.com.

A final judgment amount of nearly $26.3 million, or $419 per square foot, was established for the property on July 6 by Miami-Dade Circuit Court Judge Ronald Dresnick.

If the borrower fails to satisfy the loan by the auction date, the 62,800-square-foot property with 300 feet of Atlantic Ocean access would be sold to the highest bidder who surpasses the final judgment amount.  

If no one offers more than the final judgment amount, the property that was once slated for a 47-story tower would transfer byway of the court to the current lender, Sunny Isles Property Holdings LLC with manager Carlos J. Mattos.

Mattos made headlines in Miami in mid-June when one of the companies purchased 31 developer units at the 1060 Brickell condominium tower for $6.1 million, or $203 per square foot, according to a CondoVultures.com article.  

A couple of weeks later, Jorge Mattos, a business partner and brother of Carlos Mattos, paid $5.69 million, or $196 per square foot, for 21 units in the Marina Blue condominium tower in Downtown Miami, according to another CondoVultures.com article.

Carlos Mattos' Sunny Isles Property Holdings is in a position to own the development site after acquiring the remaining balance of a $25 million mortgage from the original lender at a discount in February.   

The existing borrower owes $22.4 million in unpaid principal, $2.4 million in unpaid interest, $1.1 million in property taxes for 2007 and 2008, a $224,000 "exit fee", and a $118,500 late charge, according to the order. The property was originally purchased in May 2003 for $25 million, or $398 per square foot.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ or view our Video Gallery. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database. Our new books, the Official Condo Buyers Guide to Miami™ , Miami's Great Condo Crash: A Chronicle of the Boom and Bust™ , and the First-Time Home Buyers Guide To South Florida™ are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™. This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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