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Posts Tagged ‘Adam Adache’

South Florida Company Launches New Bulk Sales Platform

Thursday, August 26th, 2010

By Michael Gerrity
Real Estate Channel
8/25/10 1:35 PM EST

(FT. LAUDERDALE, FL) — South Florida based Adache Real Estate has announced today that they have formed a new platform to handle the growing back-log of rejected bank bulk sale listings.

Adache has merged its Project Sales and Marketing Division with its Bulk Real Estate division in order to facilitate quick transactions on stagnant bulk deals. This temporary merger is designed to facilitate the sale of large amounts of inventory by offering a one-stop solution that includes aggressive marketing and management. In the current economic climate, a significant number of offers are being rejected by the banks and, as a result, bulk inventory has remained stagnant.

“There are numerous bulk properties out there yet many of them are not getting sold,” stated Adam Adache, president of Adache Real Estate. “While banks certainly would prefer to move properties, the trend has been to place unrealistic valuations on bulk sales. Property can no longer be appraised in a retail market context if they are being sold in a wholesale format.”

In response, Adache Real Estate is offering to alleviate the lenders’ and developers’ precarious position by presenting a holistic approach to selling. Adache is even capable of committing capital to effectuate upgrades to projects in scenarios where property owners are cash strapped.

Adache’s modified business strategy has already proven successful: the company sold 62 of 122 total units at Village at Town Center, in Davenport, Florida in just three months. More than 40 of these units have already closed.

The company maintains a vast international network of buyers and brokers in many countries including the United States, United Kingdom, Canada, Sweden, Switzerland, Colombia, Venezuela, and South Africa, among others. The company utilizes proprietary inventory management software to manage a high volume of sales and contracts that are originating from these markets.

“We have the platform and network in place to duplicate this success over and over again,” stated Adache. “The days of order-taking in real estate are gone. You have to actually go out and get sales, which is exactly what we do.”

“Any project that does not have an adequate sales organization representing it nor an aggressive marketing campaign will continue to suffer in this market,” explained Adache. “We look at each project with a very critical eye to determine what it needs to be marketable and then if we like it, commit the necessary capital to improve it and get it sold.”

To further its commitment to the deployment of more comprehensive marketing to banks Adache has hired Jay Robins as Director of Business Development to identify banks and other sellers that may require Adache’s unique set of services, and Adolfo Salgueiro, who previously held that position, was promoted to VP of Operations.

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Posted in Bulk, Foreclosure, US Economy | No Comments »

NEW DEVELOPMENT MONEY ACTIVATES STAGNANT MARKET IN FLORIDA

Thursday, April 15th, 2010
Village at Town Center, Orlando

Village at Town Center, Orlando

By Adam Adache
adam@adachere.com
954-566-7400

After a stagnant two years in Florida’s condo and housing market, inventory is starting to move again as record low prices attract home buyers and once again lure investors and buyers from all over the world. Among the most stagnant has been newly constructed condo projects throughout the state where developers had their hands tied due to projects being linked to exorbitant purchase prices on land mirrored by high mortgage amounts that were prohibiting developers from discounting units. As banks and other lending institutions continue to file foreclosure actions on these projects in record numbers, bulk buyers with “new development money” are buying these once distressed properties for pennies on the dollar and passing the savings along to the public at “foreclosure-style” prices.

Both the bulk buyers combined with lender discounts to developers’ existing mortgages are bringing recently built development projects back in the forefront. Adache Real Estate, through its bulk sales division is working with several buying groups and is helping these groups with both the project acquisition process as well as reselling the units individually for the new owner after the projects are acquired. We currently have offers in to purchase projects in various cities including Miami, Fort Lauderdale, West Palm Beach and Orlando.

What is interesting is the speed the individual units are being sold after a project is bought out. Some projects are actually experiencing buying frenzies that have not been seen in Florida for quite some time.  The truth is that if it’s the right project at the right price it will sell quickly.

Failed projects all over Florida are being revived by new ownership and the ability to sell at steep discounts. One example of this is the Village at Town Center in the Orlando area, 20 minutes south of Disney (www.VTChome.com). The project consists of 240 condominium units that were originally selling between $200-250,000 per unit during the hot market. Prior to the real estate market downturn the old developer sold nearly half of the project before sales came to a halt. Last February Ultimate Holdings, a British developer and investment company, bought all of the remaining 122 units at the project and are selling the units to the public for an average price of $75,000 per unit. This equates to a 70% discount from where prices once were.

“We are excited about the opportunities that the Florida real estate market has to offer at this time,” stated James Black, a managing partner for Ultimate Holdings. “We have made Florida our main investment focus and are happy to offer quality product at great prices to the public. We believe that the current market offers a time to purchase real estate that we may never see again in our life time.”

Over 40 contracts for Village at Town Center have been written within the first month of sales, mostly from International buyers looking to take advantage of the steep discounts. Most of the units on sale are already rented which guarantees income from the very first day.

For a list of all available foreclosures in South Florida, please visit www.adacheREO.com. For commercial real estate opportunities, and real estate bulk sales in Florida, visit us at www.AdacheREO.com/bulk.

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Posted in Commercial, Foreclosure, Residential, US Economy | 2 Comments »

COCOWALK FORECLOSURE ACTION SIGNIFIES CONTINUED COMMERCIAL WOES

Tuesday, January 12th, 2010

cocowalk

By Adam Adache
President, Adache Real Estate

According to the most recent edition of the South Florida Business Journal, Coconut Grove’s CocoWalk, a 200,000 square foot entertainment complex, was hit with a $97.6 million foreclosure lawsuit. Following trend with the South Florida residential bubble burst of 2006; commercial real estate has been steadily deteriorating. Since the closing of national brands such as Circuit City and Linens-N-Things in early 2009, vacancy rates have been significantly rising and major strip malls and shopping centers have been fighting more and more foreclosure actions.

Artificial growth in the housing market created liquidity for consumers, which eventually rolled over into the commercial real estate market. This fueled commercial developers to build and buy attempting to accommodate the new lavish consumer spending trends that were taking place. The residential and commercial booms were largely by greed, which clouded common sense.

Although most are guilty what has happened (consumers, developers and banks), I believe commercial operators, such as the New Orleans based developer who purchased CocoWalk for $87 million and pledged millions more to redevelop it, are as guilty as they come. Even more than the banks who lent the money. Commercial developers and operators should have known better than to pay a price that barely made economic sense at the top of a multi-year boom. Unlike some predatory lenders who have been accused of tricking the “Average Joe” into bad loans in the residential sector, these borrowers should have known better considering they usually have more commercial real estate experience than the banks who lent them the money.

Expect more and more commercial foreclosure actions in South Florida to follow suit. There is every indication out there that this is only the beginning of the commercial bust. Opportunity is ripe for those who sat on the sidelines and still have deep pockets. The bust of both the residential and commercial markets has created a buying opportunity that we may never again see in our lifetime.

For commercial real estate opportunities, please visit us at www.AdacheREO.com/bulk. For a list of all available residential foreclosures in South Florida, please visit www.adacheREO.com. You can also follow us on Facebook becoming a fan of the “Foreclosures in South Florida” page or through Twitter at http://twitter.com/adachere.

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Posted in Commercial | 1 Comment »