Joshua Krut, Chair of the Community Association, Club & Resort Practice Group, Joseph Hernandez, Chair of the Real Estate Practice Group and former partner Michael Popok completed the transaction for the firm.
It was a $75 million deal that took years of litigation and negotiation for the sale of more than 90% of the units in the Seashore Club South Condominium which gave the developer purchasing the units the ability to purchase the remaining units and ultimately develop a new condominium project
The Seashore Club South Condo Association, located in Sunny Isles, is one of the many condominium associations which Weiss Serota Helfman Cole & Bierman, P.L. represents as outside general counsel. The Association contacted the firm requesting advice on the sale of the entire project through a termination of the condominium. When a potential buyer came along, a right of first refusal was exercised, launching the first lawsuit regarding the value of the condo. The suit was ultimately settled and the process of buying the condo for future development continued. Next, the “Plan of Termination” to terminate the condominium and allow the sale of the entire project was successfully adopted by the unit owner but was challenged during the appeal period. A handful of dissident owners either did not want to sell or wanted a significantly higher sum, which was already much higher than market value.
Given that over 90% of the unit owners were willing to sell, the Weiss Serota Helfman Cole & Bierman team was able to develop a practical strategy to negotiate on behalf of its clients to sell over 90% of the units and close the deal amicably and successfully. The sale was a successful outcome for the willing sellers and the purchasing developer.
The firm continued to provide counsel to the Board throughout the transaction, advising them on corporate governance, internal issues, and presiding over frequent meetings of the Board and 170 unit owners.
Through resolving litigation, handling on-going condo issues and working the real estate transaction elements, the result was a sale of over 90% of the units for a purchase price in excess of $75 million, one of the largest transactions in the area. Each unit owner pocketed more than $478,000 – a huge windfall for the owners, many of whom were senior citizens and immigrants.
The Daily Business Review Top Dealmakers awards will be presented on May 8 during a luncheon at the JW Marriot Miami.
