Fortress Avoids Foreclosure of Fort Lauderdale’s RV Park and Marina

By Elias DaSilva | September 9, 2024.

According to recent published reports, it has been revealed that Fortress Investment Group has managed to avoid the foreclosure process that would have taken place over Yacht Haven Park & Marina, located in the city of Fort Lauderdale, Florida. With this new agreement implemented by the company, a loan of $85.8 million was signed on the property, which is under the control of investors Gary Cioffi and Christopher Hein. With this agreement, the property would be saved, and all those multiple investments and repairs that would be needed could be made, thus achieving significant improvement and a faster and better return on investment.

Additionally, the agreement on the RV park states that, in case of default, the borrowers may transfer the property to the lender or reach any agreement to avoid any possible legal actions, additional payments, fines, or foreclosure process if any breach of contract occurs.

As is widely known, the real estate market in South Florida, which was once booming, is currently facing major challenges due to rising interest rates and higher insurance costs on properties; a situation that affects the cash flow of investors and their refinancing capabilities.

According to the agreed deed, it has been confirmed that the property was initially acquired for $58.1 million by the investors, and Fortress has made a loan of $81.7 million for the purchase and possible renovations. Currently, Yacht Haven Park & Marina has had an investment of more than $20 million in improvements, including the reconfiguration of RV sites and the reduction of platforms from 265 to 222. At present, this beautiful RV park also features a pool and 55 berths for yachts up to 150 feet.

This is yet another example of how the economic crisis is visible across all real estate sectors, especially now in South Florida, where the consequences are much more noticeable, particularly in the office and multifamily project areas, where recent sales show significant price reductions.