Palm Beach Shores condo development site targeted in $6M foreclosure

Article Courtesy of The South Florida Business Journal

By Brian Bandell
Published January 22, 2021


A Palm Beach Shores property that’s slated for a condominium development has been targeted in a $5.5 million foreclosure lawsuit.

Fryd Mortgage filed a foreclosure complaint Jan. 6 against v Skyfall Ocean 150 LLC, Skyfall Ocean 200 LLC and Skyfall Ocean 206 LLC, along with loan guarantors Robert S. Castellano and Jay Deutchman. The lawsuit concerns the 1.34-acre site at 150, 200 and 206 Inlet Way.

Located on the north side of the Palm Beach Inlet, the waterfront property currently has three apartment buildings with a combined 23 units. It was approved for a 15-unit Skyfall Ocean condo project.

The developer acquired the property for $6.5 million in 2019 and obtained a $5.5 million mortgage. According to the complaint, the borrower defaulted on the mortgage by failing to make the Dec. 1, 2020, payment and not paying property taxes. The complaint says $5.5 million in principal, plus interest, is due.

Attorney Mark E. Kass, who represents Fryd Mortgage in the lawsuit, couldn’t be reached for comment.

Castellano, the head of Weston-based Robert Castellano Building and Design, said the December mortgage payment was “delayed” because he expected to close on a $20 million construction loan with another lender soon.

"His [$5.5 million] loan will get paid off, and then we will move forward," Castellano said. "The property taxes will come out of the costing proceeds. We were supposed to close the loan on Dec. 31, so we are 13 days behind schedule."

Castellano said he’s presold six of the 15 units at Skyfall Ocean. Prices range from $1.78 million to $3.9 million.