Foreclosing Lender Dodges Major Headache; Unloads 141 Repossessed Luxury Units For $24M Cash Before Recent Discovery Of Chinese Drywall In Building

In West Palm Beach, Florida, WPBF-TV Channel 25 reports on The Whitney, a newly-constructed luxury condominium that opened in 2007, but was facing foreclosure by the lender by the end of 2008, and the health problems being complained about by a couple of the condominium residents (no word on the headaches now being felt by the foreign company who plunked down big bucks in February for the remaining unsold units). In a recent letter,(1) the management company has recently informed all the residents of the likely presence of Chinese drywall in the building.

• The Whitney's property manager, Paul Wilkis, told WPBF News 25's investigative reporter Terri Parker that he was not authorized to talk about the drywall problem, but in the letter he sent to residents, he said the board is hiring an engineer to determine the presence and extent of defective Chinese drywall and whether or not it poses hazards to the property.

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• The Whitney opened in 2007, but was facing foreclosure by the lender by the end of 2008. A Scandinavian investment firm, ABG Sundal Collier, paid $24 million in cash for 141 units in February. Many of the units were offered for rent.

For the story, see Downtown West Palm Beach Condo Has Chinese Drywall (The Whitney Sends Letter To Residents).

In a related story, see South Florida Business Journal: Whitney units sold in bulk for $24M (A Scandinavian investment company has paid $24 million in cash for 141 units of the Whitney condominium in West Palm Beach).

Go here for other posts on Chinese drywall.

(1) According to the story, the letter to all residents said an air-conditioning leak sparked an investigation that led to the discovery of "the likely presence of Chinese drywall."