CGI Merchant Group has lost control of the 550 Biltmore office building in Coral Gables, as its South Florida real estate holdings continue to face financial challenges. The 15-story property at 550 Biltmore Way was subject to a foreclosure judgment last month, with Miami-Dade Circuit Judge Abby Cynamon ordering a foreclosure sale for March 23. The judgment, totaling $61.3 million, was awarded to SDI Biltmore Borrower, an entity connected to Secured Debt Investments.
The breakdown of the amount includes $49.2 million in principal from a 2021 loan, $12.1 million in default interest, and $68,000 for attorney fees and other expenses. According to the lender, CGI Merchant had already lost ownership of the building through a Uniform Commercial Code (UCC) proceeding before this judicial foreclosure.
Originally built in 1986 on a one-acre site and featuring Mediterranean Revival architecture typical of Coral Gables, CGI Merchant acquired the property for $54.4 million in 2019 with financing from MSD Partners—now known as BDT & MSD Partners. In 2021, Cerberus Capital Management refinanced the loan up to $48.7 million.
CGI Fund I Biltmore, an affiliate of CGI Merchant Group, defaulted when the loan matured in May 2024. Cerberus initiated a UCC foreclosure later that year—a process that targets ownership interests rather than the physical property and is generally faster than judicial foreclosures.
Cerberus then assigned the loan to Secured Debt Investments in May. After completing the UCC foreclosure and acquiring interest in CGI Fund I Biltmore, Secured Debt Investments filed for judicial foreclosure to resolve any potential liens or title issues on the property. Orlando Garcia of Secured Debt Investments stated that they plan to submit a credit bid at the upcoming sale but will also observe if there are other bidders.
Requests for comment from CGI representatives were not returned.
Since 2024, CGI Merchant Group has faced increasing difficulties amid higher interest rates nationwide and rising insurance and maintenance costs specific to South Florida landlords. These conditions have made it harder for owners with floating-rate loans and no rate caps to manage debt payments or refinance maturing obligations.
In earlier interviews about these challenges, Thomas said he was “diligently working to refinance some of his debt,” adding that he had “capital and equity lined up for some of his properties” and was attempting “to try to take back title to buildings he already lost to lenders.” During Cerberus’ UCC foreclosure process last year, a representative for CGI stated: “is working with all parties for a mutually positive resolution.”
The loss of 550 Biltmore follows several other setbacks for CGI Merchant Group. In December, it lost control of its Gabriel South Beach hotel after Park Central Lender acquired it at auction following foreclosure proceedings over a $69 million loan assumed from Deutsche Bank.
On another day in August 2024, CGI also lost both its Gabriel Downtown Miami hotel and Waldorf Astoria Washington DC—the latter purchased just two years prior from the Trump Organization.
Despite these losses, CGI has managed to avoid foreclosure on some assets by selling properties such as commercial units at Ten Aragon Condominium in Coral Gables last year for $28.5 million—proceeds used largely to pay off most of an overdue $24.2 million loan on those units.
Additionally, CGI sold its five-property Nexus co-working office portfolio in Palm Beach and Martin counties last November for $31 million to TMT Properties. Three properties involved had previously entered special servicing due to missed debt payments according to Morningstar Credit; TMT continues operating them under the Nexus name through a licensing agreement.
