Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Sale Of City-Owned Property Located At 2534 McKinley Street To DPH Investment Group, LLC, In The Amount Of $235,000.00; Authorizing The Appropriate City Officials To Execute A Residential Contract For Sale And Purchase Along With A Warranty Deed.
Body
Staff Recommends Approval of Attached Resolution.
Explanation:
On April 3, 2015, the City acquired the real property located at 2534 McKinley Street, consisting of two separate residential units, from Sean Cononie by Special Warranty Deed.
On November 15, 2017, the City Commission passed and adopted Resolution No. R-2017-330 which approved and authorized the issuance of Blanket Purchase Order No. B003071 with Real Estate Asset Disposition Corp. (“READ”) to provide real estate services to the City.
City staff determined that READ would market the property for sale and it would be sold “As Is” with all closing costs to be paid by the buyer.
Signage was installed on-site indicating the property was for sale and it was listed in the Multiple Listing Service. READ’s efforts resulted in multiple offers to purchase the property “As Is”, and these offers are listed below.
DPH Investment Group, LLC - Hallandale Beach, Florida $235,000.00
Now Home Buyers, LLC - Sunrise, Florida $207,000.00
Aaron Corporation, Inc. - Miami, Florida $192,000.00
2534 McKinley Street Land Trust $185,000.00
Ace Equity Holdings, LLC - Miramar, Florida $180,000.00
Orgill Property Ventures - Palm Beach Gardens $179,500.00
Freedom Source, LLC - Davie, Florida $177,000.00
Rockwood Investments, Inc. - Miami, Florida $175,000.00
Adam-Eran Real Estate, LLC - Fort Lauderdale, Florida $175,000.00
Staff recommends approval of the offer by DPH Investments, LLC of Hallandale Beach, Florida to purchase the property “As Is” in the amount of $235,000.00. The Buyer’s offer includes an initial deposit in the amount of $5,000.00. A copy of the “As Is” Residential Contract for Sale and Purchase is attached as Exhibit 1.
Pursuant to Section 13.01(a), of the City Charter, entitled Sale of City-Owned Real Property, any property which the city proposes to sell or otherwise dispose of must be appraised by one (1) independent, qualified appraiser. If the appraiser values the property in excess of two hundred fifty thousand dollars ($250,000.00), a second independent appraisal is required. If the two appraisals differ by more than 25%, a third independent appraisal is required.
An independent appraisal of the property was conducted on June 21, 2018 by The Urban Group, Inc., and the appraised valued of the property in its “As Is” condition was determined to be $220,000.00. The valuation of the property reflects its current condition as needing rehabilitation. Pursuant to Section 13.01. (b) and (c) of the City Charter, if the subject sale is less than $250,000.00 and not beach, beachfront, park, or other recreational facility, the property may be sold upon a simple majority vote of the City Commission.
Upon sale of the property, the property will be placed on the tax rolls and the City’s ongoing maintenance costs shall be eliminated. Staff recommends that the City Commission approve and authorize the execution of the attached Contract along with a Warranty Deed for the sale of the Property to DPH Investment Group, LLC in the amount of $235,000.00. Closing on the transaction is anticipate to occur July 19, 2018, pending approval of the proposed sale by the City Commission. Sales proceeds shall be deposited in the General Revenue Account Number 34.1200.00000.364.00220.
Recommended for inclusion on the agenda by:
Dr. Wazir Ishmael, City Manager
Gus Zambrano, Assistant City Manager
Shiv Newaldass, Chief Development Officer/Interim Director of the Department of Development Services
Clay Milan, Community Development Division Manager