HOUSE_OVERSIGHT_027068.txt

The Related Companies is the initial bidder for the Palm House Hotel, which failed as a condo-hotel project. The stalking horse bidder, RREF II PALM HOUSE LLC, led by Related Companies Managing Principal Justin Metz, is offering $32 million for the property in a bankruptcy auction scheduled for next month. Bids at the auction will start at $32.5 million. The property faces allegations of fraud by the Securities and Exchange Commission and EB-5 investors. Given expects the property to sell for up to $40 million, and it could be the last opportunity for a developer to own a hotel in Palm Beach.