Trending
Coal Capital’s Lake Worth Beach rehab complex faces foreclosure
Lender sues Brooklyn-based firm for allegedly defaulting on $17M mortgage
Coal Capital Group could lose a medical rehab facility in Lake Worth Beach to foreclosure.
Denver-based Lapis Advisers, as agent for a fund that acquired a mortgage from Santander Bank in 2020, filed a foreclosure complaint against Brooklyn-based Coal Capital and two affiliates, court records and real estate database Vizzda show.
The lawsuit, filed in Palm Beach Circuit Court last week, alleges Coal Capital and its affiliates defaulted on the $17.2 million mortgage secured by Retreat Behavioral Health, a 3-acre medical rehab complex at 4020, 4118 and 4140 Lake Worth Road. The property consists of a pair of two-story buildings and one three-story building, records show.
In 2015, Coal Capital paid $905,000 for the property and completed the buildings a year later, records show.
Coal Capital’s owner, David Silberstein, did not respond to a phone message and email request for comment. Scott Silver, an attorney for Lapis Advisers, declined comment.
In 2018, Coal Capital scored a $21 million loan from Santander Bank, which then sold the mortgage two years later to the Lapis-managed fund, the lawsuit states. Lapis alleges that Coal Capital hasn’t made monthly mortgage payments since December.
In recent weeks, lenders have filed a flurry of foreclosure complaints against owners of South Florida commercial properties. Last month, an entity managed by Chandler Halpern in Fort Lauderdale sued the owners of a Coral Gables development site previously owned by embattled developer Rishi Kapoor and his former company Location Ventures.
Halpern alleges that the current owners — four former investors in Location Ventures — failed to repay a $10 million loan secured by a 1.6-acre property at 1505 Ponce de Leon Boulevard. The mortgage matured in November, according to the lawsuit filed in Miami-Dade Circuit Court.
Also last month, Wilmington Trust NA, as trustee for Boise-based A10 Capital, sued an affiliate of New York-based R&B Realty for allegedly defaulting on two loans secured by a fairly new office building in Miami’s Wynwood neighborhood. The complaint, also filed in Miami-Dade Circuit Court, alleges that R&B stopped making monthly payments in December and owes $101 million.
The two mortgages are collateralized by Gateway at Wynwood, a building completed in 2021 with 195,000 square feet of office space that is nearly half vacant.