In 2007, more than a year before the real estate market was rocked by the recession, an island developer corporation set to work building a Palm Beach mansion. Now, five years later, the 27,000 square foot home on 2.5 acres of lakefront property sits vacant. The limited liability company, which is controlled by the developer corporation, recently filed for Chapter 11 bankruptcy.
A well-known commercial real estate broker from Florida has filed for bankruptcy amid a run of financial setbacks suffered during his time as a real estate developer. According to his Chapter 7 bankruptcy petition, the man carries a specified debt of $3.2 million and several other debts where the amount owed is unknown. The man left the brokering business several years earlier and spent time as a developer. But, after some business setbacks, he returned to his former profession. In a prepared statement, the broker said that the real estate collapse in Florida was a major contributing factor to his financial struggles. He also brought up the fact that bankruptcy protection was the only viable option left in order to get out of debt and take control of his finances.