Sale of 1515 Tower a relief to owners

Article Courtesy of Palm Beach Post

By Jane Musgrave
Published January 27, 2007

 

 WEST PALM BEACH The nightmare is finally over for far-flung residents of the hurricane-ravaged 1515 Tower.

 

Late Friday afternoon, a New York-based hedge fund transferred $36.5 million into a condominium bank account, consummating the sale of the once-regal 30-story waterfront condominium, which has been covered with plywood and plastic since it was pummeled by back-to-back hurricanes in 2004.

"I'm very happy," said Jen Werner, who had lived in the 119-unit waterfront tower for only four months when the hurricanes hit. "Maybe we'll have a big party."

 

But like many owners who have watched their hopes for multimillion-dollar insurance settlements disappear and other sales deals collapse, Werner's enthusiasm was tempered with skepticism.

 

"I'll believe it when I get my check in the mail," she said.

That should begin happening Monday, said attorney Daryl Cramer, who handled the complex sale for the association.

 

While he understood residents' disbelief, particularly since the sale was delayed repeatedly during the last month, he said it is official. The average sale price was about $307,000.

 

Bill Jacobson, an attorney who represents the buyer Stillwell Capital Partners, confirmed Cramer's words. "My clients are now the proud owners of the 1515 Tower," he said.

Now that they own it, he said, they plan to tear it down.

 

Next week, he said, his clients will begin meeting with city officials to determine what they can build on the roughly 2-acre site on South Flagler Drive, just south of downtown.

Technically, a new building would be capped at four stories and 64 units, said Charles Wu, city planning director. However, he said, if the building is configured in a certain way, waivers can be granted that could add as many as 20 stories.

 

Jacobson predicted it would be early spring before the pockmarked 1515 Tower would be razed. City building officials have said steps must be taken to secure the building before the next hurricane season.

 

While there has been talk of imploding it, city building official Neil Melick said that could be dangerous, given the proximity of nearby buildings.

 

"It's very complicated," he said. "You have explosives that produce recoil that can damage adjacent buildings."

 

Still, Jacobson said, those decisions are well into the future. He said he's just glad the complex task of closing on 113 units simultaneously is complete. Owners who did not participate in the mass sale now will have no choice but to sell.

 

While the sale allows unit owners to move on with their lives, Cramer acknowledged that a lot of people got hurt.

 

Hani Riad, a retired information technology executive who became president of the condo board last January, described the past year as "a very rough ride."

 

A promised $55 million sale collapsed last summer. A month later, residents were forced to settle a $20 million lawsuit against QBE Insurance for $2.25 million. A mock jury that had heard the case found that fraud and misrepresentation had fueled the condo's claims.

"Some people have had nervous breakdowns," Riad said. "They speak to me through their relatives because they can't even talk about it."

 

Few are making any money on the sale. When a roughly $60,000 assessment, $400 monthly maintenance fees and the cost of temporary housing are factored in, the financial hit most residents took is enormous.

 

Owner Randie Dalia, who now lives in a rental unit in Juno Beach, said she has learned her lesson. "I'll never buy a condo again."

 

Christopher Horn, who hadn't even lived in his unit before the storms struck, said he may buy another condo.

  

"But I'm older and wiser," he said. In the future, he'll require hurricane-proof windows and make sure the association has enough money in reserve to deal with the possible impact of a hurricane.


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