Middle Eastern Developer Offers $ 120 Million for Surfside Site

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DAMAC Properties founder Hussain Sajwani / Forbes

Forbes

A multi-billion dollar Middle Eastern real estate developer has agreed to bid $ 120 million for the nearly two-acre oceanfront property on which a 12-story condominium tower collapsed in Surfside in June, killing nearly 100 people, according to one on Court document filed Friday.

The identity of the developer’s US company, East Oceanside Development, LLC, was revealed in an application for approval of the sales contract by the bankruptcy administrator for the condominium company Champlain Towers South. East Oceanside Development is owned by Dubai-based DAMAC Properties, a publicly traded company in the United Arab Emirates founded by wealthy businessman Hussain Sajwani.

On its website DAMAC advertises as “Premier Luxury Developer” in oil-rich Dubai and says: “has shaped the luxury real estate market in the Middle East since 2002. “

Miami-Dade Circuit judge Michael Hanzman is expected to close the sales contract Thursday at the next regular meeting of the bankruptcy administrator, attorney Michael Goldberg, and other parties involved in legal proceedings over the collapse of the 136-unit property tower are, will approve.

The first bidder, East Oceanside Development, is required to pay a $ 16 million down payment under the terms of the contract, which includes a non-refundable $ 150,000. The developer’s offer is a “stalking horse” offering a reserve price for the 8777 Collins Ave. specifies. East Oceanside Development now has two months to conduct due diligence on the property covering environmental, zoning and other issues. The general plan is to build a luxury high-rise condominium project on the site.

But with the initial offer almost complete, other developers can now submit offers that could bring in a higher price for the property. Hanzman, the judge, will have the final say on which property developer will prevail in the bidding competition with contributions from victims of the condo tower collapse and attorneys involved in a class action lawsuit for negligence. The judge’s decision is expected to be made in the spring.

Hanzman said his goal was to make as much money as possible from selling the land to compensate the families of the 98 people who died in the condominium collapse on April 24. Many of the victims and their loved ones are Jews, including some who have called for a memorial at the collapse site instead of a new condominium building.

Another source of compensation for the victims is $ 49 million from Champlain Towers South insurance coverage. But that matter was easily resolved, contrary to the sale of the Collins Avenue property and the plan for the memorial to the dead.

This story was originally published September 24, 2021 5:27 p.m.

Jay Weaver writes about villains who specialize in scammers, rip-offs and conspiracies of millions. Since joining the Miami Herald in 1999, he has been reporting non-stop on federal courts, from Elian’s custody battle to A-Rod’s steroid abuse. He was a member of the Herald team that won the 2001 Pulitzer Breaking News Prize. He and three fellow Heralds were finalists in the Pulitzer Prize for explanatory coverage in 2019 for a series on gold smuggling from South America to Miami.


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