A Miami Beach property where Rishi Kapoor planned a co-living condo project will be sold at auction.
Miami Federal Judge Jacqueline Becerra on Monday authorized the hiring of auctioneer Lamar Fisher and his eponymous firm to sell two commercial buildings at 1234 and 1260 Washington Avenue owned by an affiliate of Urbin, a subsidiary of Location Ventures, the Coral Gables-based development firm founded by Kapoor, court records show.
A lender, Coral Gables-based Spectrum Mortgage Group, has a pending $14.9 million foreclosure complaint against an Urbin entity that owns the properties.
Kapoor, who stepped down as CEO of Location Ventures last summer, previously planned to redevelop the buildings into Urbin Miami Beach, a low-rise condominium with 69 co-living units. But the properties are now managed by a court-appointed receiver, Bernice Lee, who requested permission to hire Fisher, an April 12 motion shows.
In January, Lee took over management of Location Ventures and its affiliates at the request of the U.S. Securities and Exchange Commission after the federal agency sued Kapoor and his former companies for allegedly defrauding $93 million from more than 50 investors.
Kapoor did not object to the hiring of Fisher, Lee’s motion states. The minimum bid and date of auction are not yet determined, court records show.
Prior to the SEC case, Location Ventures imploded, as the company and Kapoor were besieged with lawsuits from investors alleging misappropriation of project funds and vendors alleging nonpayment of services. Kapoor is also the target of county and federal criminal investigations initiated by public revelations that Urbin, the Location Ventures subsidiary, was paying Miami Mayor Francis Suarez a $10,000 per month consulting gig.
Cecilia Altonaga, the federal judge that initially presided over the SEC case, froze all of Kapoor’s and Location Ventures’ assets in late December, court records show. Altonaga also issued a stay on all litigation against Location Ventures and its affiliates, including the foreclosure lawsuit against the entity that owns 1234 and 1260 Washington Avenue.
In June of last year, the city of Miami Beach also issued a stop work order at the project site after building officials determined Urbin had not secured permits to begin construction.