Chetrit Group’s waterfront condo development site in Pompano Beach and its units at the Hollywood Beach Resort are set to be auctioned through a Uniform Commercial Code (UCC) foreclosure process. The lender, which issued a $17.2 million loan on both properties in 2022, initiated the UCC foreclosure according to a public notice published in the South Florida Sun Sentinel and FloridaPublicNotices.com. The auction is scheduled for December 22 and aims to raise $21.7 million to cover principal, interest, default interest, and related fees.
UCC auctions allow for the sale of ownership interests in entities holding real estate without judicial involvement. This method enables mezzanine lenders to recover funds more quickly than traditional court-based foreclosures.
The properties involved include a 2.5-acre vacant site at 2507 and 2629 North Ocean Boulevard in Pompano Beach and 102 condominium units at the Hollywood Beach Resort at 101 North Ocean Drive. Chetrit had planned a 121-unit condo project with a marina on the Pompano Beach property, but construction has not started.
Joseph Chetrit declined to comment.
Borrowers sometimes negotiate with lenders for forbearance agreements by extending loan maturities or finding new equity partners, potentially postponing auctions while they seek additional capital.
Both sites carry debt from Madison Realty Capital, based in New York and led by Josh Zegen, Brian Shatz, and Adam Tantleff. In 2022, Madison provided Chetrit with loans totaling $94 million for the Pompano Beach site and $78 million for acquiring the Hollywood Beach Resort units.
Last year, Chetrit avoided an earlier UCC foreclosure attempt by Madison by contributing significant capital to refinance these debts. This action extended financing on the Pompano Beach property by six months and on the Hollywood Beach Resort units by one year.
Madison declined to comment.
Madison Realty Capital has previously financed other Chetrit projects. In 2021, it supplied a $310 million construction loan for Chetrit’s Miami River development—a planned four-million-square-foot complex that will eventually feature nearly two thousand residential units as well as retail space, office space, marina slips, and parking facilities. The first phase of this project—a luxury apartment tower with over six hundred units—is nearing completion at 275 Southwest Sixth Street in Miami.
This year saw new investors join the Miami River project: Adam Neumann’s Flow company, Canada Global, and billionaire Yakir Gabay’s Yellowstone Trust acquired partnership stakes while Chetrit retained a “significant minority” stake.
