National Residential Sells Building Project

MIAMI-National Residential Properties Inc. has signed a $3.6 million contract to sell the Granada Grand apartment project in Miami to Vacation Ownership Marketing Inc. of Wellington, FL near West Palm Beach.

The Miami-based real estate development company expects to net about $2.5 million by selling the planned 60-unit luxury multifamily project.

National Residential will receive common stock valued at no less than $3.1 million in Vacation Ownership. The deal is subject to an existing first mortgage of $525,000.

There are interlocking directorates, common shareholders and business relationships between the two companies. For one, Miami-based Encore Builders Inc., a building contractor working on another National Residential project, is a subsidiary of Vacation Ownership.

Subject to an independent real estate appraisal, Vacation Ownership would acquire the project as ready to build, obtain a construction loan and build the project as condominiums.

Even if the appraisal is less than the $3.25 million purchase price, Vacation Ownership would pay National Residential any excess over the appraised value, according to the company’s prepared statement. Closing is tentatively scheduled for Nov. 15.