Bank OZK is seeking to foreclose on a Lincoln Road property owned by developer David Edelstein.
The Little Rock, Arkansas-based bank, one of the most aggressive commercial real estate lenders in the country, is looking to collect on the $12.8 million that’s allegedly remaining on the loan, plus fees and interest, for the buildings at 918 and 920 Lincoln Road in Miami Beach.
Bank OZK filed a suit in Miami-Dade County Circuit Court in August, alleging the guarantors of the loan have not made a loan payment since April.
Edelstein’s TriStar Capital, Jacqueline Mansfield and former disgraced RFK broker Robert Futterman are the guarantors. C1 Bank, which Bank OZK acquired four years ago, provided the $13.9 million loan in 2015.
The South Florida Business Journal first reported the lawsuit.
The buildings, and Lincoln Road overall, have been challenged in recent months.
WeWork is being sued by its landlord for failing to pay rent in April, May and June, and said it plans to close that location later this month. Books & Books, Steve Madden and Kiehl’s have recently closed their Lincoln Road locations.
At Edelstein’s property, his 918 Star LLC filed an eviction notice in December against a restaurant tenant, alleging the tenant owed $226,000 in unpaid rent. In January, the restaurant agreed to vacate the premises, but the lawsuit remains pending.
The TriStar affiliate paid $18.5 million for the Lincoln Road buildings in 2015, which breaks down to an eye-popping $6,579 per square foot. The buildings, totaling 2,812 square feet, were originally built in 1935.
Edelstein did not provide a comment when reached via phone.
Edelstein, a part owner of the W South Beach and an investor in Miami’s Wynwood neighborhood, is a landlord to major tech companies like Amazon, Facebook and Apple along the West Coast.
Bank OZK has provided some of the largest construction loans in South Florida in recent years.
The lawsuit represents one of the first commercial foreclosures to be filed since March in South Florida. Banks have largely been reluctant to foreclose on properties and instead have sought to offer deferrals to landlords.