Lender is deeded under-construction mansion in Manalapan near Palm Beach for $21.5 million

A deed recorded Monday documented a $21.5 million sale involving an in-construction mansion being developed on speculation on an ocean-to-lake at 1460 S. Ocean Blvd. in Manalapan, the wealthy town south of Palm Beach.

But the amount recorded on the deed is millions of dollars less than the price advertised for the mansion, which is listed for sale at $87.5 million.

The deed may be related to a foreclosure lawsuit filed in October in Palm Beach County circuit court on a multi-million mortgage tied to a loan on the property. The lender was a Florida limited liability company named London Financial South Ocean LLC of Key Biscayne, which the deed lists as the buyer of the property.

As of Oct. 6, the lawsuit says, the lender was owed $20.8 million — as specified in mortgage and other loan documents — along with accruing interest. The foreclosure case remains open, according to the court docket.

Attorneys on both sides of the deal either aren’t talking or couldn’t be reached by the Palm Beach Daily News.

Construction has been repeatedly delayed on the mansion, which would have six bedrooms and 25,476 square feet of living space, inside and out, according to plans submitted to the town. With 172 feet of ocean and lake frontage, the lot measures 1½ acres and is about a mile north of the Boynton Beach Inlet.

The buying entity is co-managed by I. Edward London and Edward T. London, state business records show. Edward London’s LinkedIn profile describes his profession as a “hard money lender” and a “South Florida loan specialist” at London Financial Co., where he holds the title executive vice president

The deed lists the Fort Lauderdale office of Mark Somerstein — an attorney with Greenspoon Marder — as the buyer’s mailing address. Somerstein declined to comment about the sale.

Greenspoon Marder attorney Chad Tamaroff, who filed the foreclosure complaint on behalf of the lender, couldn’t be reached.

FROM THE 2022 ARCHIVES: Manalapan mansion at 1460 S. Ocean Blvd. lists with in-construction price of $79.5 million

The seller on the deed, 1460 S. Ocean Boulevard LLC, is an entity managed by Nigerian energy businessman Onajite Okoloko, business records show. Okoloko, who has ties to south Palm Beach County, founded Notore Chemical Industries, according to that company’s website.

The foreclosure suit names Okoloko as a defendant and says he defaulted as the borrower after guaranteeing payment of the loan linked to the mortgage.

State business records show Okoloko’s mailing address for 1460 S. Ocean Boulevard LLC is in care of Paul A. Krasker, an attorney with his own practice in West Palm Beach. Krasker couldn’t be reached for comment.

On the seller’s side, attorney Manuel Farach signed the deed on behalf of 1460 S. Ocean Boulevard LLC. He did not immediately return a request for comment left at his West Palm Beach office at Mrachek, Fitzgerald, Rose, Konopka, Thomas & Weiss.

In March, I. Edward London signed, as a manager of London Financial South Ocean LLC, a “mortgage modification and notice of future advance agreement,” courthouse records show. The mortgage document said the borrower on the property owed $28.25 million, including a principal amount of $17.25 million and another $11 million in future advances.

Language on the deed recorded Monday says: “It is the intention of the parties that the (recorded) Mortgage and Security Agreement, … as amended, shall not be deemed satisfied or merged into the Property” at 1460 S. Ocean Blvd.

According to the foreclosure lawsuit, the borrower failed to make interest payments on the loan in July and August of this year. The borrower also “failed to diligently pursue completion of the (construction) improvements” and did not remain “in compliance with (the agreed-upon) construction timeline,” the foreclosure complaint said.

The property last sold, vacant, for $12.45 million in 2017, courthouse records show.

The first building permit was issued by then town in 2018. Since then, the Town Commission granted two requests for time extensions on the permit. A new permit was issued in 2021, and officials eventually voted to extend it through the end of this year.

A request for another construction time extension —through April 26 — has been submitted to the town for consideration at the Town Commission’s Dec. 18 meeting, according to officials

RECORD-SETTING SALE: Waterfront estate in Manalapan sells for $173 million and sets a new Florida residential record

As of Tuesday morning, Premier Estate Properties’ sales listing for the house was still active in the multiple listing service.

Joseph G. Liguori, the lead agent on the listing team at Premier Estate Properties, said he had no comment about the sale.

With two stories and a service level below ground, the house was designed with a long list of amenities, including a “wellness center” with an indoor swimming pool and a glass roof. The plans also include a two-story reception room, a “floating” staircase, a catering kitchen, a 12-car garage and a wing with two VIP guest suites.

The bulk of the property is on the beach side of South Ocean Boulevard, with a narrow lakefront parcel — and a deep-water dock — on the opposite side of the coastal road.

The estate was listed for sale in late March 2022 with a completion date of this year, the multiple listing service shows. At the time, the estate carried an in-construction price of $79.5 million and a completed price of $115 million.

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This is a developing story. Check back for updates.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz.

This article originally appeared on Palm Beach Daily News: Mansion being built near Palm Beach deeded to lender for $21.5 million