A Hollywood warehouse owner is in danger of losing the building to foreclosure.
Nearly a dozen entities managed by David Frank in Miami allegedly failed to repay a $1.8 million loan and a $10.8 revolving line of credit secured by a single-story, 8,640-square-foot industrial building at 1980 Grant Street, court records show. The lender, Woodlands, Texas-based Woodforest National Bank, filed a foreclosure complaint in Broward County Circuit Court on Oct. 4.
Frank, who runs several medical supply distribution businesses from the Hollywood warehouse, did not respond to a request for comment. Woodforest’s attorney declined to comment.
In 2020, Frank paid $875,000 for the building, which was completed in 1961, records show. He renovated the warehouse a year later, according to an online listing. The property is currently on the market for $2.7 million.
Frank obtained the loan and the line of credit in 2021, with funds also made available to his medical supply entities that do not own an interest in the property, the lawsuit states. In January, Woodforest and Frank entered into a forbearance agreement. Frank allegedly defaulted on the agreement in June when he allegedly failed to pay back the $1.8 million owed on the loan, the complaint states.
Foreclosures of South Florida commercial properties are surging, regardless of how much borrowers owe. This month, Miami-based Altamar Financial Group filed a foreclosure lawsuit in Miami-Dade County against the owner of a television production facility near Doral. Altamar alleges that an entity managed by Alain Piedra-Hernandez in Miami defaulted on a $4.8 million mortgage.
The owner of a Coral Gables office complex is also in the crosshairs of its lender. Last week, Minneapolis-based global investment firm Värde Partners sued an affiliate of San Antonio, Texas-based Affinius Capital, for allegedly defaulting on a $68.4 million loan secured by Columbus Center, a 2.5-acre site with two office buildings at 1 Alhambra Plaza.
The complaint, also filed in Miami-Dade, alleges that the debt ballooned to $77.4 million, including accrued interest and late fees.