Cirrus Real Estate Partners has emerged as the winner of a second bankruptcy auction for a downtown Miami development site, but this time at a significantly higher price. The New York-based firm, which is also the lender on the property at 340 Biscayne Boulevard, placed an initial $77 million credit bid and ultimately secured the site for $95 million after bidding against an unidentified competitor in $5 million increments, according to Bisnow.
The new auction was conducted by Concierge Auctions following a legal challenge from Brazilian developer Gilberto Bomeny. Bomeny’s complaint led to Cirrus’ earlier victory being overturned. Gabriel Flores of One Commercial, affiliated with One Sotheby’s International Realty, managed the listing for the property.
The transaction awaits approval from U.S. Bankruptcy Court Judge Laurel Isicoff in Miami, who is scheduled to review it during a hearing on February 11.
This development continues an ongoing dispute between Cirrus and Bomeny regarding the 10-story Holiday Inn located on the nearly one-acre parcel. The site already has approvals for redevelopment into an 82-story tower designed by Arquitectonica, which would include residential condos, hotel rooms, offices, retail space, and parking facilities.
In 2024, Cirrus initiated foreclosure proceedings under the Uniform Commercial Code (UCC) against Bomeny’s entity over alleged default on a $70 million loan. Bomeny had acquired the property and hotel in 2015 for $65 million.
After Cirrus filed for foreclosure, Bomeny’s affiliate sought Chapter 11 bankruptcy protection, leading to an initial auction where Cirrus made a winning bid of $77 million. However, Bomeny’s ownership group successfully argued in court that there were “constant changes and irregularities” during that process which prevented higher offers from being submitted.
Cirrus challenged these claims in court filings and contended that other potential bidders had not registered or submitted required deposits before the first auction. Nevertheless, Judge Isicoff ordered a second auction this month.
Neither representatives of Cirrus nor attorneys for Bomeny responded immediately to requests for comment regarding this latest outcome. Notably, Bomeny has previously been involved as a development partner in significant projects such as One Thousand Museum and Regalia Residences in South Florida.
These foreclosure actions and auctions come amid broader challenges faced by landlords due to rising interest rates since 2022–2023—making refinancing more costly—and increased expenses related to insurance premiums and construction costs across South Florida. As a result of these pressures, some owners have put properties up for sale or lost them through foreclosure rather than proceed with planned developments or secure new investment partners.
A similar situation unfolded elsewhere in downtown Miami when CGI Merchant’s Gabriel Downtown Miami hotel was foreclosed upon by Madison Realty Capital over loan defaults totaling $60.4 million.
The Federal Reserve reduced benchmark interest rates several times during 2024 but kept them unchanged most recently; nevertheless, market conditions remain challenging for many commercial property owners throughout South Florida.
