New
Providence Capital and TD Bank, the two major lenders to the company which
developed the $74 million mansion in Palm Beach, have objected to the granting
of a super-priority claim to the project’s developer, Dan Swanson.
Swanson’s
company, Addison Development, has built the mansion at 1220 S. Ocean Blvd.
along with many other mansions and high-end homes in Palm Beach County.
On September
21, Swanson filed to put the $74 million mansion and his development company
into Chapter 11 bankruptcy. On October 22, he sought a judge’s order granting
him a super-priority administrative claim for his expenses, if he personally
finances maintenance and upkeep.
The two
major lenders in the development of the Palm Beach property objected saying
Swanson’s company should seek alternative financing first.
Swanson’s
development company built the mansion on speculation and so far it has not been
able to find buyers at the asking price of $74 million. His company paid $20.8
million for the 2.11-acre lot in 2007. Records said the built area is 24,369
square feet. Amenities include an elevator, boat dock, patio, fountain and
in-ground pool. The project has about $24 million in debts. Loans came from TD
Bank at $16 million and $5.2 million, and from New Providence at $5.3 million
and $1 million.
On November
15, there will be a hearing in West Palm Beach bankruptcy court to approve
employment of Kaufman Rossin & Co. as accountant and James McCann of
Corcoran Group as real estate broker.
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