A collection of 14 deteriorating South Bronx apartment buildings has been snapped up by a real estate development company led by former New York Met first baseman Maurice “Mo” Vaughn in a foreclosure auction, Amanda Fung reports in Crain’s.
The properties were owned by entities of the Ocelot Capital Group, which abandoned them, let them fall into disrepair and eventually defaulted on the mortgage.
Omni New York, the winning bidder, purchased the collateral for the current loan portfolio of 14 buildings at a discount. They consisting of 416 units, with a mortgage debt totaling $23.8 million. The sale price was not disclosed.
The city said there were about a dozen bidders, a mix of nonprofits and for-profit real estate companies that have shown they can rehabilitate and manage distressed properties.
Ocelot bought the Bronx buildings for $36 million near the top of the real estate boom in 2007. Fannie Mae purchased the $29 million loan on the Ocelot buildings from Deutsche Bank and discovered the loan didn’t meet its underwriting standards. The loans went into foreclosure in March.
Uh, wait. Fannie purchased the loan and then discovered that the buildings didn’t meet its standards? D’ya suppose there might be a connection between that sort of procedure and the housing mess?
I guess there’s a lesson in this that few developers heeded. You know: Buy low, sell high. Congratulations, Mo.
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