HOUSE_OVERSIGHT_027068.jpg
1.53 MB
Extraction Summary
8
People
7
Organizations
3
Locations
3
Events
2
Relationships
4
Quotes
Document Information
Type:
News article / media printout
File Size:
1.53 MB
Summary
A news article by Keith Larsen dated October 11, 2018, reporting that an affiliate of Related Companies (RREF II PALM HOUSE LLC), led by Justin Metz, placed a $32 million stalking horse bid for the bankrupt Palm House Hotel in Palm Beach. The property, previously linked to developer Robert Matthews who faces SEC fraud allegations, was scheduled for auction on November 16, 2018, with Cushman & Wakefield acting as marketing advisers. The document is stamped with a House Oversight footer.
People (8)
| Name | Role | Context |
|---|---|---|
| Keith Larsen | Author |
Author of the article
|
| Stephen Ross | Related Companies Figure |
Mentioned in the metadata/tags line 'Stephen Ross600'
|
| Justin Metz | Managing Principal |
Managing Principal of Related Companies; leads the stalking horse bidder entity
|
| Robert Given | Marketing Adviser |
Cushman & Wakefield agent handling the property marketing; provided quotes on expected sale price
|
| Errol Blumer | Marketing Adviser |
Cushman & Wakefield agent
|
| Michael Mulkern | Marketing Adviser |
Cushman & Wakefield agent
|
| Robert Kaplan | Marketing Adviser |
Cushman & Wakefield agent
|
| Robert Matthews | Developer |
Former developer who led the group previously set to renovate the property
|
Organizations (7)
| Name | Type | Context |
|---|---|---|
| Related Companies |
Parent company of the bidder
|
|
| RREF II PALM HOUSE LLC |
The stalking horse bidder entity
|
|
| Palm House Hotel |
The property being auctioned
|
|
| U.S. Bankruptcy Court |
Venue for the filing
|
|
| Securities and Exchange Commission |
Regulatory body alleging fraud against former developer
|
|
| Cushman & Wakefield |
Real estate firm marketing the property
|
|
| House Oversight Committee |
Source of the document (implied by footer)
|
Timeline (3 events)
2018-11-16
Locations (3)
| Location | Context |
|---|---|
Relationships (2)
Managing Principal Justin Metz
The property was set to be renovated by a group led by developer Robert Matthews.
Key Quotes (4)
"An affiliate of the Related Companies has emerged as the initial bidder for the Palm House Hotel"Source
HOUSE_OVERSIGHT_027068.jpg
Quote #1
"The stalking horse bidder, RREF II PALM HOUSE LLC, has the same address as Related Companies in New York"Source
HOUSE_OVERSIGHT_027068.jpg
Quote #2
"Given said he expects the property to sell for up to $40 million"Source
HOUSE_OVERSIGHT_027068.jpg
Quote #3
"former developer now faces allegations of fraud by the Securities and Exchange Commission"Source
HOUSE_OVERSIGHT_027068.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (2,037 characters)
By Keith Larsen | October 11, 2018 06:15PM
[Image Icon]
Palm House Hotel, Related Companies Stephen Ross600
An affiliate of the Related Companies has emerged as the initial bidder for the Palm House Hotel as the failed condo-hotel project heads to a bankruptcy auction.
The stalking horse bidder, RREF II PALM HOUSE LLC, has the same address as Related Companies in New York and is led by Related Companies Managing Principal Justin Metz, according to a filing in U.S. Bankruptcy Court. The company is offering $32 million for the property, which will set the floor price for a bankruptcy auction scheduled for next month. Bids at the auction will start at $32.5 million.
The 79-unit condo-hotel project on Palm Beach Island stalled in 2014 and its former developer now faces allegations of fraud by the Securities and Exchange Commission and a group of EB-5 investors. In August, the property filed for bankruptcy under its court appointed receiver with creditors claims totaling $115 million.
Cushman & Wakefield’s Robert Given, Errol Blumer, Michael Mulkern and Robert Kaplan are the exclusive marketing advisers for the property. The auction is scheduled for 10 a.m. on November 16, 2018 in West Palm Beach.
Given said he expects the property to sell for up to $40 million and it could be the last opportunity for a developer to own a hotel in the wealthy enclave of Palm Beach. He said the next owner will likely not redevelop the property. Instead, the best option would be to continue renovating the existing project which could take more than a year to complete, Given said.
By auctioning the project through a bankruptcy sale, it will be offered free and clear from any liens. The bankruptcy also means that the new owner will not have any responsibility for the issues stemming from EB-5 investors who had invested in the property.
The 82,648-square-foot project was first developed in 1961 and expanded in 1981. The property was set to be renovated by a group led by developer Robert Matthews.
HOUSE_OVERSIGHT_027068
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