Bank OZK seeks to foreclose on David Edelstein’s Lincoln Road buildings

The bank is looking to collect on the remaining $12.8 million on the loan

Miami /
Aug.August 07, 2020 03:30 PM
David Edelstein, George Gleason and 918-920 Lincoln Road (Google Maps)

David Edelstein, George Gleason and 918-920 Lincoln Road (Google Maps)

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.


Related Articles

arrow_forward_ios
Don Peebles and Barry Sternlicht with renderings of proposals to develop city-owned property in Miami Beach (Starwood, Integra, Comras JV, Polo Sivori, CC BY-SA 4.0 via Wikimedia Commons, Getty)
Miami Beach voters to decide on controversial Peebles, Sternlicht office projects near Lincoln Road
Miami Beach voters to decide on controversial Peebles, Sternlicht office projects near Lincoln Road
Terreno Realty's W. Blake Baird with 8050 Northwest 90th Street (LinkedIn, Google Maps)
Lender sells foreclosed aviation maintenance site in Medley for $20M
Lender sells foreclosed aviation maintenance site in Medley for $20M
Starwood's Barry Sternlicht and Don Peebles III (Getty, Starwood, Integra, Comras JV)
Miami Beach gives green light to controversial Peebles, Sternlicht office projects near Lincoln Road
Miami Beach gives green light to controversial Peebles, Sternlicht office projects near Lincoln Road
From left: Ivy Realty's Anthony P. DiTommaso Jr. and Russell Warren Jr. (Ivy Realty in front of the Tower 101 office building at 101 Northeast Third Avenue in Fort Lauderdale (Ivy Realty)
Lease roundup: Ivy Realty scores tenants at Tower 101 in Fort Lauderdale
Lease roundup: Ivy Realty scores tenants at Tower 101 in Fort Lauderdale
BH Properties' Steve Gozini and Vornado's Steven Roth with 1100 Lincoln Road (BH Properties, Getty, Google Maps)
Steve Roth’s Vornado sells Lincoln Road building for $94M, nearly 30 percent less than it paid a decade ago
Steve Roth’s Vornado sells Lincoln Road building for $94M, nearly 30 percent less than it paid a decade ago
From left: David Edelstein, Alex Karakhanian and Victor Ballestas in front of the property at 3601 North Miami Avenue (Lndmrk Development, Tricap, Integra Investments, LoopNet)
David Edelstein, partners buy Design District dev site, plan office tower
David Edelstein, partners buy Design District dev site, plan office tower
Don Peebles and Barry Sternlicht with renderings of proposals to develop city-owned property in Miami Beach (Starwood Capital Group, Integra Investments, Comrass Company, Wikipedia, Getty)
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
Miami Beach gives preliminary OK to controversial Peebles, Sternlicht office projects near Lincoln Road
Renderings of new Miami Collective site with Gamma Real Estate’s Jonathan Kalikow (The Collective, Gamma Real Estate)
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
Lender takes control of The Collective’s Wynwood dev site through foreclosure auction
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...