The investors in a Fort Lauderdale RV park and marina surrendered the property to the lender through a deed in lieu of foreclosure valued at $85.8 million.
Gary Cioffi and Christopher Hein handed back the keys to the 20.2-acre Yacht Haven Park & Marina at 2295 and 2323 West State Road 84 to Fortress Investment Group, according to records and real estate database Vizzda.
In a deed in lieu of foreclosure, borrowers in trouble with debt obligations come to an agreement with lenders that avoids a foreclosure suit. The borrower hands over the keys of the property to the lender in exchange for a guarantee that the lender won’t pursue legal action or further payments.
South Florida commercial real estate thrived over the past four years due to an influx of residents and businesses, but the market has felt the sting of economic headwinds more recently. Higher interest rates, coupled with skyrocketing property insurance, have dented investors’ cash flow and made it difficult to refinance.
Cioffi and Hein, through their Fort Lauderdale Motorcoach Resort and Yacht Club entity, bought the RV park and marina for $58.1 million in 2021, taking out an $81.7 million loan from New York-based Fortress, records show. The financing was for the purchase and renovation of Yacht Haven.
Cioffi and Hein planned to pump over $20 million of the financing into renovations. The investors started the work, reconfiguring the RV sites to make them more spacious, and reducing the number of pads from 265 to 222. Yacht Haven also has a pool and 55 side-tie boat slips that can accommodate up to 150-foot yachts, a property brochure shows.
Distress has manifested across South Florida property types, though most prominently in office buildings, followed by multifamily developments. This month, Bridge Investment Group sold a Sunrise office complex for $49 million, marking a 34 percent price cut from five years ago, while Nuveen Real Estate sold a 197-unit Plantation apartment complex for $49.4 million, marking a 5 percent discount from a decade ago.