While Miami appears to be thriving in most commercial real estate categories, the town isn’t immune to the impending office loan problems The Gateway at Wynwood, a 14-story office property is facing foreclosure. Commercial Observer reports that Wilmington Trust is suing the building owner, R&B Realty Group. Wilmington Trust, on behalf of a commercial mortgage-backed security (CMBS) is trying to recoup $101.7 million and seize the property at 2916 N. Miami Ave.
Public filings indicated A10 Capital awarded mortgages of $109.7 million to Gateway at Wynwood and $3.3 million to an adjacent property in February 2023. The loans were a refinancing of the construction loan for the office building. A10 Capital later transferred the loans to a CMBS fund. According to the lawsuit, the borrowers defaulted on the loans by failing to make payments starting on December 1, 2023 and owe $98.68 million and $3.04 million, respectively, plus interest and fees.
The post Miami Highrise Owner Facing Foreclosure appeared first on Connect CRE.