CGI Merchant allegedly owes vendors more than $200K: lawsuits

CGI Merchant Group was hit with four lawsuits over a six-month period, alleging non-payment of nearly $210,000 in bills for property management, security and other services.

JLL, The Water Restoration Group, Cintas Corporation and Security Management Innovations are separately suing the Miami-based real estate investment firm and its affiliates in Miami-Dade Circuit Court.

CGI, led by CEO Raoul Thomas, allegedly owes its vendors for work provided at various South Florida properties the firm owns, including the Hilton-branded Gabriel Miami hotel at 1100 Biscayne Boulevard in downtown Miami, a Coconut Grove office building at 3480 Main Highway, and two Coral Gables office buildings at 550 Biltmore Way and 55 Miracle Mile.

In May, CGI closed a $375 million deal to acquire the lease for the former Trump-branded hotel in Washington, D.C. The firm rebranded the federally owned historic property under the Waldorf Astoria flag. CGI purchased the lease with proceeds from a $650 million investment fund, whose partners include retired Major League Baseball star Alex Rodriguez and Adi Chugh of Maverick Commercial Properties.

Thomas did not respond to voicemail messages and emails seeking comment.

JLL

In the most recent lawsuit, filed on Nov. 30, JLL alleges CGI hasn’t paid $104,377 in fees and personnel costs associated with agreements to manage eight South Florida office properties, including the Coconut Grove building and one of the Coral Gables buildings. JLL terminated the agreements on July 31, the complaint states.

CGI acquired 55 Miracle Mile for $21.4 million in 2013, and 3840 Main Highway for $3 million in 2014, records show.

The Water Restoration Group

On Nov. 15, the Miami-based property damage remediation company sued the CGI affiliate that owns 550 Biltmore Way, a 15-floor office building completed in 1986. Water Restoration alleges that CGI hasn’t paid a $41,909 invoice for extracting water from the building’s garage in June.

In 2019, CGI paid $54.4 million for the property, records show.

Cintas Corporation

The Mason, Ohio-based uniforms and apparel manufacturer sued Gabriel Miami’s ownership entity in September for alleged nonpayment of a $4,105 unpaid invoice. Cintas alleges that Gabriel Miami hasn’t paid for mats, soaps and dust mops stamped with the hotel’s logo that the company made in 2020.

Cintas is also seeking an additional $30,495 in liquidated damages, the lawsuit states. Last month, Cintas won a default judgment against the ownership entity.

In 2013, CGI’s affiliate paid $19.5 million for the 157-key hotel.

Security Management Innovations

In June, the Miami-based private security firm sued CGI for allegedly failing to pay $34,635 for providing guards at Gabriel Miami. Security Management and CGI entered into an agreement last year to pay $21 per hour for each security officer, the complaint states.

Security Management alleges CGI hasn’t paid invoices between Jan. 13 and May 19.