Doral office building loses $23M foreclosure judgment, competing buyers could head off auction
Brian Bandell | July 23, 2015
The Doral Court office building has been scheduled for foreclosure auction on Sept. 1, but several potential buyers are competing to purchase the property before then.
Doral Court Debt Holdings, an affiliate of New York-based Triangle Capital Group led by Michael Pinewski, won a $22.7 million foreclosure judgment against 45 LLCs with the name NNN Doral Court. They represent multiple tenants in common that collectively own the 230,504-square-foot office complex at 8600 N.W. 36th Street. It has 209,075 square feet of leasable space and the main tenant is SunTrust Bank.
The $18 million mortgage was previously sold by a securitized lender to Doral Court Debt Holdings. The property has been facing a foreclosure lawsuit since 2012.
Multiple parties are competing to buy the office building, court filings show. Miami-based Banyan Street Capital filed a motion to intervene in the case with a claim that it signed a deal with NNN Doral Court to buy the property for $25.9 million.
“Banyan holds a contract to purchase the property which, when closed, will pay off the debt and leave a surplus for the sellers,” said Eugene Stearns, the attorney for Banyan. “There were competing contracts presented to a receiver who asked that the court take those over Banyan’s. The judge denied the receiver’s motion. Randy George, who speaks for the sellers, has recently attempted to renege on the contract with Banyan.”
Banyan has a pending motion seeking permission to buy the office building.
According to a report by receiver Howard Martin Holzapfel, four offers were submitted to him for Doral Court, with the highest being $31 million by Purchase and Finance LLC, an affiliate of North Miami-based IMC Property Management. The receiver recommended selling the property to IMC and not to Banyan because it was for substantially more money and the Banyan offer was made outside of the receivership process. NNN Doral argued that its contract with Banyan was not finalized.
Stearns argued in court on June 26 that NNN Doral was having seller’s remorse and should not be released from its contract with Banyan. He said NNN Doral did not need the receiver’s permission to execute the sales contract and the court should enforce it.
Meanwhile, debt holder Triangle Capital Group made an offer to buy the property for $27 million. That would wipe out the debt and provide some return for the sellers.
On the June 26 hearing, Miami-Dade Circuit Court Judge Jerald Bagley declined to accept the receiver’s motion to sell the property to IMC because, “I find it not to be reliable and I believe that there’s too much uncertainty in terms of the terms and conditions for the closing on the property in question.”
The judge said he would rule on Banyan’s motion to purchase the property some time before the Sept. 1 foreclosure auction. He didn’t say whether he would grant the request or not.
“This foreclosure action has been made unnecessarily complex as a result of the difficulty in dealing with 33 tenant in common owners and the numerous issues they have raised,” said Peter Russin, the representative of Doral Court Debt Holdings and an attorney at Meland, Russin & Budwick. “The lender looks forward to the foreclosure sale of the property on September 1.”
Neither Shaun M. Garry, the attorney for the receiver, nor Mark Auerbacher, the attorney for NNN Doral, could be reached for comment.
Doral Court last sold for $33.3 million in 2005.