One Bal Harbour Resort And Spa Sells For $13.4M In Bankruptcy Sale
A federal bankruptcy judge has approved the $13.4 million purchase of the scandal-plagued One Bal Harbour Resort and Spa by the residential condominium association.
A Chapter 11 reorganization plan approved Friday by U.S. Bankruptcy Robert A. Mark in Miami did not discharge former co-owner Thomas Sullivan, the owner of Virginia-based Lumber Liquidators Holdings Inc., from a pending derivative suit that seeks up to $30 million.
The civil negligence lawsuit filed in August, which seeks more than $20 million from Sullivan, alleges his One Bal Harbour partners, Jorge and Juan Arevalo, siphoned off millions of dollars from the property to live a life of luxury.
The crescent-shaped oceanfront tower consists of 185 condos with individual owners, 124 hotel rooms owned by investors and shared facilities including a spa, pool, lobby, restaurant and valet parking.
Financing of the purchase, which closed Monday, was provided by Gibraltar Private Bank & Trust Co. The sale includes both towers, including the shared amenities.
The sale of the property at the northeast tip of Bal Harbour to the 10295 Collins Avenue Residential Condominium Association Inc. was part of the bankruptcy plan approved by Mark for Elcom Hotel & Spa LLC and Elcom Condominium LLC, which shared ownership of the property.
"The intrinsic value of the One Bal Harbour property, which is located directly on the ocean at Bal Harbour Inlet, is unmistakable and has only increased since it was built," said Louis Mayberg, president of the residential condo association.
The association acted after realizing the governing documents would leave owners open to trouble with any other buyer, he said.
"We took the only logical step and elected to purchase the property ourselves so that we have full control over our world," Mayberg said.
The association of hotel-condo owners was not involved in the sale.