Chetrit Group’s waterfront development site in Pompano Beach and its units at the Hollywood Beach Resort are set for a Uniform Commercial Code (UCC) foreclosure auction, according to a public notice published in the South Florida Sun Sentinel and FloridaPublicNotices.com. The lender, which provided a $17.2 million loan on both properties in 2022, initiated the UCC foreclosure process. The auction is scheduled for December 22 and aims to raise $21.7 million to cover principal, interest, default interest, and related fees.
UCC auctions differ from traditional judicial foreclosures by allowing non-judicial sale of ownership interests in the entities that hold real estate assets. This method enables mezzanine lenders to recover their investments more quickly than through court proceedings.
The properties involved include a vacant 2.5-acre parcel at 2507 and 2629 North Ocean Boulevard in Pompano Beach and 102 condo units at Hollywood Beach Resort at 101 North Ocean Drive. Chetrit Group has planned a 121-unit condominium project with a marina on the Pompano Beach site, but construction has not started.
Joseph Chetrit declined to comment on the matter.
Borrowers sometimes negotiate with lenders for forbearance agreements—such as extending loan terms or bringing in equity partners—to delay auctions while seeking additional capital.
Both sites carry debt from Madison Realty Capital, based in New York and led by Josh Zegen, Brian Shatz, and Adam Tantleff. In 2022, Madison issued Chetrit Group loans totaling $94 million for the Pompano Beach property and $78 million for acquiring the Hollywood Beach Resort units.
Last year, Chetrit avoided another UCC foreclosure attempt by contributing significant capital to refinance existing debt with Madison Realty Capital. This move extended financing on both projects—a six-month extension for Pompano Beach and one year for Hollywood Beach Resort—according to information previously reported by The Real Deal.
Madison Realty Capital declined to comment on this latest development.
Madison has frequently financed Chetrit projects; notably, it provided a $310 million construction loan in 2021 for Chetrit’s planned Miami River development—a large-scale project expected to include residential units as well as retail space, office areas, marina slips, and parking facilities upon completion. The first phase of this Miami River project—a luxury apartment tower—is nearly finished at 275 Southwest Sixth Street in Miami.
Earlier this year, Flow (founded by Adam Neumann), Canada Global, and Yellowstone Trust (owned by Yakir Gabay) acquired partnership stakes in the Miami River project while Chetrit retained a significant minority stake.
