Joe and Jacob Chetrit refinanced their massive Hollywood Beach and Pompano Beach projects, staving off a foreclosure attempt by Madison Realty Capital.
Madison had launched a non-judicial foreclosure against the Chetrits’ stake in the two South Florida developments earlier this year, but the real estate heavyweights recently came to terms on a deal.
The Chetrits will chip in a significant amount of capital to refinance and extend their loans with Madison Realty on the 121-unit condo project in Pompano Beach and redevelopment of the century-old Hollywood Beach Resort.
Chetrits’ land loan on the Pompano Beach project, which has not yet broken ground, will be extended by six months. In Hollywood Beach, the Chetrits’ loan will be extended for another year, according to a source.
Henry Bodek of Galaxy Capital brokered the deals.
Madison Realty has been one of Jo Chetrit’s go-to lenders. The New York-based firm provided the $94 million land loan to Chetrit for the Pompano Beach project in 2022. Madison also lent Chetrit $78 million to acquire the units in the Hollywood Beach Resort that same year.
“Our commitment to both of these projects in South Florida has been demonstrated by our significant infusion of capital,” said Jonathan Chetrit of Chetrit Group. “We are excited to enter the new phase of these projects and thank Madison Realty Capital for the work they did and the execution of the next step.”
Madison Realty declined to comment.
Madison Realty had filed a U.C.C. foreclosure notice alleging Chetrit was in default and owed $20.5 million on its loan, including interest. The auction was set for Nov. 26 but was nixed when the developer and lender finalized the refinancing.
In September, Madison had also initiated a U.C.C. foreclosure on Chetrit’s 1,300-unit project site in Lower Manhattan’s Two Bridges neighborhood.
Lenders often file U.C.C. foreclosures, or non-judicial foreclosures, to get borrowers to come to the table and put in more equity. Deals often are worked out before a foreclosure actually occurs.
A U.C.C. foreclosure, which can take just 60 days, avoids the lengthy court process of a traditional foreclosure, which can take years.
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Joseph Chetrit: The man from Morocco
At the Hollywood Beach oceanfront resort, which the city’s founder built almost a century ago, Jo Chetrit quietly acquired about a third of the condo units in 2022. The developer and his relative Jacob Chetrit now have full control of the property, which involved 2,500 transactions and buying out 360 residences. Chetrit is planning to redevelop the property, but has not released any plans or renderings.
In Pompano Beach, Chetrit is building a 121-unit condo project with a 20-slip marina in the Hillsboro Shores neighborhood.