Miami's $262 Million Paramount Bay Condo Tower Goes on Auction Block

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(MIAMI, FL) -- In one of the largest residential condo auctions in South Florida's history, the luxurious waterfront Paramount Bay condo tower hits the auction block shortly after losing a foreclosure fight last month in court.

Developer Dan Kodsi of Royal Palm Miami Holdings broke ground on Paramount Bay in 2005, where it was widely hailed as a symbol of South Florida's exploding real estate marketplace.

In 2006 Royal Palm Holdings took out a $200+ million construction loan from now failed Chicago-based Corus Bank and iStar Financial. By 2008 Royal Palm Holdings was struggling to pay it's bills as the condo tower was nearly half-completed and the housing market plummeted.

The project was also plagued with several construction accidents that included the death of two construction workers when a roof-top construction crane fell 37 stories from the top of Paramount Bay.

In addition, Paramount Bay's primary lender Corus Bank went belly-up in 2009 after making too many bad real estate loans.

The final sequence of events for Paramount Bay was this past April 2011 when iStar Financial won a $262 million foreclosure settlement against Royal Palm Holdings, which cleared the way for the current bulk auction sale.

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