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Tags:  ICON BRICKELL & RELATED GROUP'S JORGE PEREZ

A group of lenders led by HSBC HOLDINGS and BANK OF AMERICA are likely to take ownership of Icon Brickell, a Miami condominium and hotel complex whose residents include Jennifer Lopez, according to Jorge Perez, chairman of the Related Group, the current owner and developer of the project.

Although representatives of HSBC and BofA have declined comments, Mr. Perez stated "The negotiations are almost finished." He added that he hoped the agreement would allow the Related Group to remain the manager of the three tower luxury complex, Mr. Perez's flagship project, featuring design, decor and art by Phillipe Starck.

Mr. Perez has indicated that Related Group had invested about $1 Billion in the Icon Brickell - a staggering sum - which includes $15 million for giant statues of heads that resemble those on Easter Island. These statues greet the residents and guests as they arrive the portico of the complex. He also said the loans secured by the three buildings total around $700 million.

Mr. Perez said he "expects a friendly agreement" with the lenders but declined to say whether they would take possesion of the buildings through a foreclosure. Alternatives would include various other legal arrangements under which Related Group could pass ownership to the lenders.

Completed in 2009, pre-sales of the units began in 2006. Related said buyers placed deposits of up to 20% on most of the nearly 1800 condo units. So far, only 117 of the purchases have been completed, with more closings expected with price cuts; which today average around $419 per sq ft, a drop from the peak of $650 per sq ft. Today a typical 2 bedroom unit would cost $550,000. The decision now is rather than sell empty units in bulk to hedge fund investors at a deep discount, the lenders have elected to sell them one by one at current market prices.

It is my opinion; that the timing to purchase a condo unit; in one of the most luxurious buildings in the Brickell area of Miami - a complex which offers the finest in services and amenities - is ripe.



 

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