Chetrit Group’s waterfront development site in Pompano Beach and its condo units at the Hollywood Beach Resort are scheduled for a Uniform Commercial Code (UCC) foreclosure auction. The lender, which issued a $17.2 million loan on both properties in 2022, initiated the UCC foreclosure process, according to public notices published in the South Florida Sun Sentinel and FloridaPublicNotices.com. The auction is set for December 22 and aims to recover $21.7 million to cover principal, interest, default interest, and associated fees.
A UCC auction is a non-judicial process where ownership interests in the entities holding the real estate are sold. This means that whoever wins the bid will take over control of the limited liability company that owns the property. These auctions typically proceed faster than traditional court-based foreclosures.
The Chetrit properties involved include a 2.5-acre vacant site at 2507 and 2629 North Ocean Boulevard in Pompano Beach as well as 102 condo units at Hollywood Beach Resort located at 101 North Ocean Drive. Records show Chetrit has long planned to develop a 121-unit condominium project with a marina on the Pompano Beach site but construction has not started.
Joseph Chetrit declined to comment.
Borrowers sometimes negotiate forbearance agreements with lenders—such as extending loan maturities or bringing in equity partners—to delay auctions and secure more time to raise 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 property and $78 million for purchasing Hollywood Beach Resort units.
Last year, Chetrit avoided another UCC foreclosure attempt by Madison by contributing additional capital to refinance existing debt; this resulted in an extension of six months for financing on Pompano Beach and one year for Hollywood Beach Resort financing.
Madison declined to comment.
Madison Realty Capital has frequently lent to Chetrit Group. In 2021, it issued a $310 million construction loan for Chetrit’s Miami River project—a planned four-million-square-foot development featuring apartments, condos, retail space, offices, a marina, and parking facilities. The first phase of this project—a luxury apartment tower—is nearing completion at 275 Southwest Sixth Street in Miami.
Earlier this year saw new investors join the Miami River project: Adam Neumann’s Flow; Canada Global; and Yellowstone Trust led by billionaire Yakir Gabay acquired partnership stakes while Chetrit retained what was described as “a significant minority” stake.
