A distressed Holiday Inn site will hit the auction block next month, signaling a possible jumpstart for redeveloping one of the last major parcels in downtown Miami.
The property at 340 Biscayne Boulevard, currently home to the 200-key Holiday Inn Port of Miami-Downtown, will be sold through a court-approved bankruptcy auction starting Dec. 3, culminating with a live sale in New York on Dec. 17, according to filings in Miami federal bankruptcy court.
On Nov. 7, U.S. Bankruptcy Judge Laurel Isicoff ruled that the sale will proceed free and clear of liens. A hearing to confirm the auction results is scheduled for early January. The site’s owner — two entities managed by Brazilian developer Gilberto Bomeny — filed for Chapter 11 protection earlier this year to stave off a UCC foreclosure.
While a minimum price has not been set, bidders will have to top a $101.5 million credit bid from Cirrus Real Estate Funding, the largest creditor in the bankruptcy case that alleges Bomeny’s entities defaulted on a $70 million loan, court filings show.
Concierge Auctions will conduct the sale and receive a 5 percent buyer’s premium to be split with the broker, or a $750,000 flat fee if Cirrus wins the property with its credit bid.
Gabriel Flores with ONE Commercial is marketing the site, which hit the market in April for $175 million.
In 2015, Bomeny’s entities paid $65 million for the property. The 10-story hotel was completed in 1950, records show.
A year before Bomeny’s entities purchased the property, the previous owner secured city approvals for a project dubbed Regalia on the Bay. Designed by Arquitectonica, the 82-story, 950,000-square-foot tower was planned to include 374 condos, 120 hotel rooms, offices, and retail, along with 500 parking spaces.
Judge Isicoff also authorized the closure of the existing Holiday Inn upon execution of a purchase agreement, with the hotel’s franchise license set to terminate on Jan. 5.
Bomeny was a development partner in the Zaha Hadid–designed One Thousand Museum condo tower in downtown Miami, and Regalia Residences in Sunny Isles Beach.