$51.2 million land sale in bankruptcy case complete

A company tied to South Florida builder John B. Kennelly met a bankruptcy court deadline Wednesday by selling eight properties for $51.2 million.

After a series of delays in the case, U.S. Bankruptcy Judge Erik P. Kimball in West Palm Beach gave the plaintiff, Enclave at Hillsboro LLC, until Wednesday at 5 p.m. to complete the sale to four different buyers.

Dezer Properties of New York bought 11.3 oceanfront acres on Hillsboro Beach for $28.5 million, said Bradley Shraiberg, a lawyer for Enclave at Hillsboro. Two adjacent Hillsboro Beach parcels went to Carol and Paul Cutler for $8.475 million and Sean Acosta for $5.475 million, he said.

Miami-based 13th Floor Homes paid $8.75 million for land that included 37 home lots west of Boynton Beach and a 16-acre commercial site nearby.

“It was a great outcome because the Kennellys were in danger of losing their investment,” Shraiberg said. “In the end, we found a way to pay all the creditors and not just the lender.”

BI Boca Boynton Portfolio LLC had the largest claim of $38 million. In addition, there were more than $2 million of scheduled unsecured claims, Shraiberg said.

Mike Nunziata, division president of 13th Floor, said he’s not yet ready to discuss plans for the sites. A spokeswoman for Dezer was not available for comment Thursday.

Eight companies linked to Kennelly filed for Chapter 11 bankruptcy protection in 2015 to avoid foreclosure. Those companies later were consolidated into one.

Kennelly, 89, bought land in South Florida in the 1970s and later started Aspen Homes. He also built the Fountains of Boynton Shopping Center.