Owner of South Beach hotel development site faces foreclosure suit

Gianfranco Rondón owns a limited liability company that has tried to develop a boutique hotel on a site that serves as collateral for a $3.5M mortgage loan

Nov.November 04, 2018 10:30 AM

Gianfranco Rondón and a rendering of his hotel project on Michigan Avenue in Miami Beach

The owner of a mortgage loan secured by a Miami Beach hotel development site filed a foreclosure lawsuit against the developer that owns the site.

The defendant in the foreclosure lawsuit, a limited liability company managed by Gianfranco Rondón of RG Group, listed the development site for sale with an asking price of $10.95 million in August.

Rondón, a Venezuelan businessman, manages RG Michigan 2014 LLC, which paid $4.25 million in 2014 for the 14,000-square-foot hotel development site in South Beach at 944 Fifth Street and 419 Michigan Avenue.

Italbank originated a $3.5 million mortgage secured by the development site in 2015 and assigned the loan to a limited liability company, LCP NPL 3 2018 LLC, in April of this year.

The limited liability company holding the loan filed a foreclosure lawsuit against Rondón’s company after construction of a five-story, 27,000-square-foot hotel on the South Beach site stalled. The foreclosure lawsuit noted that nine contractors have filed construction liens claiming that the developer failed to pay them for work on the hotel project, designed by architect Kobi Karp.

Jeff Cohen of Brown Harris Stevens in Miami has the listing for the 14,000-square-foot hotel development site and an adjacent 7,000-square-foot property.

In 2016, Rondón’s company paid $3.6 million for the 7,000-square-foot property at 411 Michigan Avenue, which the company planned to convert to parking space for the hotel.

But that property is scheduled to be sold Dec. 3 in  a foreclosure auction. In July, City First Mortgage Corp. won a $2.39 million foreclosure judgment against Rondón’s company because the mortgage lender holds a defaulted loan secured by the property at 411 Michigan Avenue. [South Florida Business Journal]Mike Seemuth

Related Articles

55 Palm Avenue (Credit: Realtor and iStock)

Metals executive mines Miami Beach home

2021-2035 Meridian Avenue, Rani Hussami and Colin Rockson

AquaBlue Group owner lists South Beach apartments for $14M

Moishe Mana and a rendering of 420 South Hibiscus Drive (Credit: Getty Images and iStock)

Moishe Mana sells Hibiscus Island home for $12M

100 La Gorce Drive, Carolyn Aronson and Jeff Aronson

Cash4Gold founder drops $20M on Miami Beach estate

Len Blavatnik, 3425 Collins Avenue and Vlad Doronin (Credit: Google Maps, Getty, Wikipedia Commons)

Len Blavatnik teams with Vlad Doronin on Aman-branded towers in Faena District

Ilya Panchernikov, Dina Goldentayer Panchernikov and Chuck Roberts (inset) and a rendering of 57 Ocean (Credit: DBOX)

Tax refugee? Stifel bigwig nabs penthouse at 57 Ocean

Daily Digest Miami

Messi lands luxury condo in Sunny Isles, Bokamper lists Plantation house

From left: Ashton Coleman, Alexander Goldstein, Craig David and the Mondrian unit (Credit: Wikipedia)

English singer Craig David sells Miami Beach condo