$6.7 Million Bid for Dearborn’s Florida Apartments
Dearborn city officials say they have a serious bid on the table for the city’s Florida apartment building for retirees but it will be at least three months before any deal can be officially inked.
The unnamed potential purchaser has bid $6.7 million for the 50-year old Florida property. The bidder was one of four people who expressed interest in the building (although the city says just three of the bids were serious offers). In 2007, the Dearborn Towers apartment complex in Clearwater, Fla. was valued at between $8 million and $8.3 million, according to one informal appraisal. Another appraisal in March 2008 put the value of property at about $5.6 million.
So the current letter of intent the city has to purchase the building for $6.7 million is a good one but odds are good the company making the bid will come back with something lower. The potential purchaser has 45 days to conduct its due diligence on the building.
“Their will be negotiations at the end of this period,” Dearborn Mayor John B. O’Reilly, Jr., said at Monday’s city council meeting. “The best case scenario (for a sale) would be at least three months. I think it will be longer than that.”
When the due diligence is completed you can be sure the offer will be lowered to at least $6 million as part of the negotiations. Dearborn City Council will then have to decide whether the bid, whatever the amount, is a good one before entering into a purchase agreement.
For an earlier story on the Dearborn Towers, click HERE.
