|By Emily Roach, The Palm Beach Post,
Fla.McClatchy-Tribune Regional News
Feb. 07, 2013--The posh Palm Beach condo-hotel The Brazilian Court is being foreclosed on, and the owners owe more than they initially paid.
Richard and Adam Schlesinger, whose company Ceebraid Signal Corp. had both the Omphoy in Palm Beach and Gulfstream Hotel in Lake Worth foreclosed on in 2010, bought The Brazilian Court in 2002 for $18 million under Ceebraid affiliate CSC Brazilian, according to court records. Mellon United National Bank's loan servicer states in a foreclosure lawsuit filed Tuesday that $19.1 million including interest is overdue on the mortgage, according to court documents.
In 2007, the Schlesingers put $50 million into a renovation of the Mediterranean Revival style hotel. They had added Cafe Boulud in 2003.
Ceebraid invested a great deal of money just before the recession hit, buying both the Gulfstream for nearly $13 million and the Palm Beach Hilton for $42 million in 2005 and renovating The Brazilian Court. In 2009, the company spent $55 million to convert the Hilton into the Omphoy Ocean Resort.
The Omphoy is under new ownership. Gulfstream appears to still be owned by the family but is up for sale.
The Schlesingers were on vacation and unavailable Thursday for comment. Calls to the hotel were not returned. Mellon United declined to comment.
According to the lawsuit, the bank wants an immediate foreclosure. It also wants the hotel owner to make payments during the foreclosure proceedings, wants to take possession of the items of value at the hotel and wants lease payments paid directly to it.
Several other people are listed on the lawsuit, including the company that manages Cafe Boulud and the company that runs the Frederic Fekkai spa. Two elderly Palm Beach women who apparently once lived there, as well as several contractors who may have been involved in the renovations are also listed.
But 34 individuals or entities who own condo units, according to the Property Appraiser's Office website, are not listed on the lawsuit. CSC Brazilian LP is recorded as owning 34 units.
The mortgage was modified five times, most recently in February of last year.
(c)2013 The Palm Beach Post (West Palm Beach, Fla.)
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