Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport

Owner United Capital Group allegedly failed to make monthly mortgage payments since April 2020

Miami /
Sep.September 20, 2021 02:32 PM
Foreclosure lawsuit targets DoubleTree hotel near Miami International Airport

DoubleTree hotel near Miami International Airport and United Capital Corp. President Anthony “Tony” Miceli (Google Maps, LinkedIn)

The owner of the DoubleTree by Hilton Hotel & Miami Airport Convention Center allegedly hasn’t made mortgage payments since April 2020. So now the lender is looking to collect nearly $33 million in outstanding debt.

The lender, a commercial mortgage-backed securities trust represented by an affiliate of Miami-based Rialto Capital Advisors, filed a foreclosure lawsuit in Miami-Dade Circuit Court against AFP 103 Corp. The entity is managed by executives of New York-based real estate investment firm United Capital Corporation.

The DoubleTree Miami Airport hotel is the latest Miami-Dade County hospitality property to end up in court over financial woes in the wake of tourism disruption caused by the pandemic. Over the summer, two hotels in downtown Miami and Brickell filed for bankruptcy protection to settle with creditors and avoid foreclosure. In March of last year, the DoubleTree Miami Airport hotel furloughed 179 employees, a state WARN record shows.

Attorneys representing United Capital’s affiliate AFP 103 Corp. and the CMBS Trust did not respond to requests for comment.

According to its website, United Capital owns 150 commercial properties encompassing more than eight million square feet across the U.S., including the Marriott Orlando Downtown.

United Capital bought the DoubleTree Miami Airport hotel in 2009 for $11.7 million in a foreclosure auction, records show. The 334-room hotel and 138,198-square-foot conference center at 711 Northwest 72nd Avenue were completed in 1968.

The property is also home to the Miami Merchandise Mart, which is owned by a different entity and is not a party to the Sept. 9 foreclosure lawsuit.

According to the complaint, United Capital’s affiliate took out a refinancing for $40 million in 2013 from an affiliate of UBS Bank. The loan was assigned to the CMBS Trust the same year. In April of last year, the CMBS Trust sent United Capital’s affiliate a notice of default after it missed its monthly mortgage payment, and no payments have been made since then, the lawsuit alleges. As a result, the outstanding principal, plus interest, of $32.8 million is now due, according to the complaint.

During 2020, government restrictions on travel and lodging establishments resulted in a massive decline in hotel guests throughout South Florida. Despite a rebound in tourism, Miami-Dade hotels are still experiencing lower bookings, especially for business travel.

In July, the owner of a Holiday Inn in downtown Miami filed for Chapter 11 bankruptcy protection, listing between $100 million to $500 million in assets, and liabilities between $10 million and $50 million. According to the owner’s attorney, the filing is aimed at settling with creditors and luring investors to redevelop the site at 340 Biscayne Boulevard.

A month later, the owner of the Aloft Brickell Miami at 1001 Southwest Second Avenue also filed for Chapter 11 bankruptcy to head off a foreclosure action by Torchlight Investors, which is seeking to collect on a $17.8 million loan.






    Related Articles

    arrow_forward_ios
    After yearslong bidding battle, Miami faces legal challenge over marina referendum
    After yearslong bidding battle, Miami faces legal challenge over marina referendum
    After yearslong bidding battle, Miami faces legal challenge over marina referendum
    Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
    Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
    Wheelock pays $106M for The Ben hotel near downtown West Palm Beach
    Landlord Bill Fuller with Ball & Chain bar and Taquerias el Mexicano restaurant (Barlington, Ball & Chain, Facebook via Taquerias El Mexicano)
    Rumble in Little Havana: Ball & Chain owner sues city of Miami for $28M
    Rumble in Little Havana: Ball & Chain owner sues city of Miami for $28M
    David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
    David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
    David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
    Dubai developer’s $120M contract for Surfside site approved, appraisal for unit owners totals $96M
    Dubai developer’s $120M contract for Surfside site approved, appraisal for unit owners totals $96M
    Dubai developer’s $120M contract for Surfside site approved, appraisal for unit owners totals $96M
    Ranee Bartolacci, Nir Meir with the Sunset Islands home (Getty, Massa Construction Group)
    Wife of embattled former HFZ principal alleges Miami Beach luxe rental was filled with rats, moldy bathrooms
    Wife of embattled former HFZ principal alleges Miami Beach luxe rental was filled with rats, moldy bathrooms
    Epic Residences & Hotel with parts of the SEC complaint (Epic, United States District Court)
    Miamian charged in payday loan scheme allegedly splurged on $2M downtown condo
    Miamian charged in payday loan scheme allegedly splurged on $2M downtown condo
    High court: Federal judge sides with Miami landlords in marijuana dispensary fight
    High court: Federal judge sides with Miami landlords in marijuana dispensary fight
    High court: Federal judge sides with Miami landlords in marijuana dispensary fight
    arrow_forward_ios

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

    Loading...