Four years after receiving approval for a 354-unit luxury apartment tower in North Miami Beach, Turkish developer Celal Ozkan has lost control of the site to lender Safe Harbor Equity. The transfer comes as part of bankruptcy proceedings overseen by federal bankruptcy court Judge Laurel M. Isicoff in Miami, who approved the sale last week.
The nearly one-acre property at 16300 Northeast 19th Avenue will now be turned over to Safe Harbor’s distressed debt fund 3. CEO Contract, led by Ozkan and with offices in Istanbul and New Castle, Delaware, had purchased the vacant land through its affiliate Sky Gardens Residences for $5.2 million in 2022.
Although CEO Contract secured final approval for the planned 20-story Sky Gardens Residences—with rooftop garden and amenities—in 2021, construction did not begin. The development faced financial difficulties starting in 2022 when CEO Contract borrowed $8.5 million from Miami Beach-based Safe Harbor Equity at an interest rate of 8.75 percent with a one-year term and options for two six-month extensions.
Court records indicate that CEO Contract defaulted on its debt obligations due in August 2022 and January 2023 and failed to pay full property taxes for that period. A subsequent forbearance agreement allowed extension of the loan term if principal was paid down to $7.7 million.
Litigation followed when Sky Gardens Residences sued Safe Harbor last year, alleging usury, manufacturing of default claims, pressure into signing a new agreement, and imposition of fees exceeding legal limits under Florida law. In response, Safe Harbor filed a countersuit seeking foreclosure based on alleged payment defaults.
The bankruptcy auction scheduled for September was canceled due to a lack of qualified bidders; bids were required to start at $4.55 million according to court documents.
Chris Spuches, attorney for Safe Harbor Equity, stated: “This is a fantastic property that we are excited to work with a developer to sell this asset,” adding that Safe Harbor does not plan to develop the site itself.
Representatives from CEO Contract did not respond to requests for comment regarding the outcome.
As per filings made during proceedings, the property is currently appraised at $18 million with projected value upon buildout estimated at $161 million. The transfer will leave only an outstanding Miami-Dade tax lien totaling $114,000 relating to unpaid taxes for 2024 and 2025 attached to the parcel.
