Chetrit Group’s development site in Pompano Beach and its units at the Hollywood Beach Resort are set for a Uniform Commercial Code (UCC) foreclosure auction. The move follows the lender’s filing, after Chetrit defaulted on a $17.2 million loan provided in 2022, as noted in public records from the South Florida Sun Sentinel and FloridaPublicNotices.com. The auction is scheduled for December 22, with a goal to recover $21.7 million, which covers principal, interest, default interest, and associated fees.
The UCC auction process differs from traditional judicial foreclosures by selling ownership interests in entities holding real estate rather than the property itself. This method typically results in a quicker resolution since it bypasses court proceedings.
The properties involved include a 2.5-acre vacant site at 2507 and 2629 North Ocean Boulevard in Pompano Beach—where Chetrit has long planned a 121-unit condominium project with a marina—and 102 condo units at the Hollywood Beach Resort located at 101 North Ocean Drive. Construction has not started on the Pompano Beach project.
Joseph Chetrit declined to comment.
Borrowers sometimes avoid such auctions by negotiating forbearance agreements with lenders, which can involve extending loan maturities or bringing in equity partners to buy more time for capital acquisition.
Both properties carry debt from Madison Realty Capital, based in New York and led by Josh Zegen, Brian Shatz, and Adam Tantleff. In 2022, Madison extended a $94 million loan for the Pompano Beach site and another $78 million loan to finance Chetrit’s purchase of units at Hollywood Beach Resort.
Last year, Chetrit avoided an earlier UCC foreclosure attempt by injecting additional capital to refinance his debt with Madison Realty Capital. This effort resulted in an extension of six months on financing for Pompano Beach and one year for Hollywood Beach Resort loans.
Madison Realty Capital declined to comment.
Madison has been active as a lender to Chetrit over recent years. In 2021, it issued a $310 million construction loan for Chetrit’s Miami River development—a planned four-million-square-foot complex that would feature residential units along with retail space, offices, marina slips, and parking facilities. The first phase—a luxury apartment tower of 54 stories with 632 units at 275 Southwest Sixth Street—is nearing completion.
Earlier this year saw new investment partners join the Miami River project: Adam Neumann’s Flow; Canada Global; and Yellowstone Trust headed by billionaire Yakir Gabay acquired partnership stakes while Chetrit retained what was described as a “significant minority” stake.
