Chetrit Group’s waterfront condo development site in Pompano Beach and its units at the Hollywood Beach Resort are set to be auctioned through a Uniform Commercial Code (UCC) foreclosure. 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 scheduled for December 22 and aims to raise $21.7 million to cover principal, interest, default interest, and related fees.
A UCC auction allows for the sale of ownership interests in entities that hold property assets. In this process, the successful bidder gains control of the limited liability company that owns the real estate. This method typically enables mezzanine lenders to recover funds more quickly than traditional judicial foreclosures.
The properties involved include a 2.5-acre vacant site at 2507 and 2629 North Ocean Boulevard in Pompano Beach, where Chetrit has planned a 121-unit condo project with a marina featuring 20 boat slips. Construction has not begun on this development. Also included are 102 condominium units at Hollywood Beach Resort at 101 North Ocean Drive.
Joseph Chetrit declined to comment on the situation.
Borrowers facing such auctions sometimes negotiate with lenders for forbearance agreements by extending loan terms or bringing in equity partners to delay sales and secure additional 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 Realty Capital extended a $94 million loan for the Pompano Beach site and a $78 million loan for acquiring units at Hollywood Beach Resort.
Last year, Chetrit avoided another UCC foreclosure attempt by contributing significant capital to refinance these loans, resulting in extensions of six months for Pompano Beach financing and one year for Hollywood Beach Resort financing.
Madison Realty Capital declined to comment regarding the current auction.
Madison has been an active lender to Chetrit Group over recent years. In 2021, it provided a $310 million construction loan for Chetrit’s Miami River project—a planned mixed-use development expected to include nearly 1,900 residential units as well as retail space, offices, a marina with 17 slips, and substantial parking facilities. The first phase of this project—a luxury apartment tower with 632 units—on Southwest Sixth Street is nearing completion.
Earlier this year, new investment partners including Adam Neumann’s Flow, Canada Global, and billionaire Yakir Gabay’s Yellowstone Trust acquired stakes in the Miami River development while Chetrit retained a “significant minority” interest.
