Edgewater condo owners in the dark after offer deadline passes. Here’s how they feel
In a waterfront Edgewater condo, owners have been left awaiting the results of an offer whose deadline passed last week.
The Aman Group submitted offers last Wednesday to owners of the 250-unit Bay Park Towers at 3301 NE Fifth Ave and gave them until 9:00 p.m. last Friday to respond. The development firm committed to paying cash by December to the first 50 owners who signed by the deadline, according to a contract shared with the Miami Herald.
If enough owners say yes, Aman would have a 20% stake in the 60-year-old building and, while not enough to purchase Bay Park Towers outright, Aman would effectively get a seat at the table and have veto power for negotiations with any prospective buyers. Under Florida law, 95% of condo owners must agree on whom they will sell their units to in order for a sale to proceed.
Nearly a week later, some owners said they are still clueless about whether Aman secured enough contracts, according to four residents who spoke to the Miami Herald. Regardless, all owners said they are content with their decision and not concerned that they haven’t yet been told of the offer’s fate.
The Miami-based firm Aman offered $150 million in early September. It bid against a standing $145 million offer by Los Angeles-based Bomel Companies and a $130 million proposal by Miami-based Beach Hill Capital Partners. Bomel later increased its offer to $150 million.
The Aman Group did not respond to multiple requests for comment. Bomel declined to comment.
“I have the same confidence as I had before,” said William Mathisen, who accepted the Aman offer and believes it will prevail.
Those that signed with Bomel share a similar sentiment.
In an email sent last week to owners, Bomel representative and Douglas Elliman Director of Investment Sales Colin Rockson said the firm had about 80 contracts and 15 awaiting additional signatures. According to the email shared with the Miami Herald, Bomel anticipated to have 100 signatures by late last week.
With 80 contracts, Bomel would have a 32% stake, leading to a potential situation in which each of two competing developers has veto power over the building’s purchase, but not enough contracts signed to take outright ownership of Bay Park Towers.
“I am unsure how many contracts each party has, but I did sign with Bomel as I believe they are the most likely to close the transaction,” said Bob Greene, a unit owner. Based in St. Louis, Greene and his wife called Bay Park Towers their vacation home for the last 20 years.
Ready to move on, residents like Robbie Bell signed with the Aman Group after its registered agent, investor and Brown Harris Stevens broker, Vivian Dimond, presented details on the offer to owners last Friday afternoon.
“I thought it was extremely informative,” Bell said, adding that Dimond’s “overall presentation, presence and confidence” sold her on Aman’s offer.
She also preferred Aman since the firm’s deal would close by late December with zero contingencies — unlike Bomel’s which promises to close only once it has a certain percentage of units.
Another unit owner, Germaine Ohaco, also decided to sign with Aman due to the firm’s full commitment to pay out by late 2021. Ohaco said she isn’t bothered by not yet being informed about the number of contracts signed.
“I am going to go with the person that will pay me for sure and with the person who will pay me the most,” Ohaco said.
Bell wants to move forward with her life after facing her second bout with cancer earlier this year. At 76, she plans on using the Aman deal to travel to Ghana, Colombia and Portugal.
“I have no clue what tomorrow holds,” she said, “and decided to move on.”
Those that have yet to accept any of the offers might be holding out for more money, said Dennis Eisinger, lawyer and managing partner of Eisinger Law. Developers in a competitive condo buyout often want to move fast and will likely pay a premium for remaining unit owners.
“Whatever offer they have, it’s likely to go higher,” Eisinger said.
Eisinger added that the Dimond-Aman tactic isn’t uncommon and he called it a “soft deadline.”
“They’re putting a deadline to create a concern with owners,” he said. “It is an arbitrary deadline. No law says developers can’t do this. They have to extend it because they’ll need more units. It has become more competitive in these condo buyouts so developers have gotten more creative.”
This story was originally published September 23, 2021 at 5:17 PM.
