August 12, 2014
Palm Beach Aggregates has sold 1,200 acres of land to an affiliate of Pimco, a California firm famous for running the world’s largest bond fund, for $77 million.
Palm Beach Aggregates had previously sold the land for around $300 million to Lennar Homes LLC. However, the deal fell through due to a political scandal when federal prosecutors accused Palm Beach County Commission Chairman Tony Masilotti of corruption tied to a $100,000 stake held by him and his brother in the proposed development. Masilotti played a huge role in securing zoning changes that caused the land’s value to skyrocket.
Masilotti resigned in October 2006 and would later plead guilty to the charges. He was released from prison in February 2011 after serving 37 months of his five-year sentence.