Briny backer finds himself in middle of mortgage mess
John Devaney, the deep-pocketed, high-flying trader who’s lead financier for the $510 million purchase of Briny Breezes, is facing a financial squeeze after a series of bad bets on the subprime mortgage market.
Angry neighbors and skeptical regulators had been the biggest obstacle to a development team’s plans for an ambitious redevelopment at the oceanfront mobile home park. Now, though, some wonder whether Briny Breezes’ buyers will have to look elsewhere for financing.
Devaney’s company, Key Biscayne-based United Capital Markets Holdings, acknowledged this week that it has suffered “significant losses” on its risky subprime mortgage trades. The company has taken the unusual step of not allowing investors to cash out of four of its hedge funds.
United Capital spokesman Michael Gregory on Friday said there was no cause for concern. He said United Real Estate Ventures, the company investing in Briny Breezes, is separate from United Capital Markets, although both are owned by Devaney.