Miami Highrise Owner Facing Foreclosure

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.