A Holiday Inn property in downtown Miami is set to be auctioned next month following a bankruptcy court decision. The site, located at 340 Biscayne Boulevard and currently operating as the 200-room Holiday Inn Port of Miami-Downtown, will go up for sale starting December 3. The process will conclude with a live auction in New York on December 17, according to documents filed in federal bankruptcy court in Miami.
U.S. Bankruptcy Judge Laurel Isicoff ruled on November 7 that the sale could proceed without any liens attached. A hearing to confirm the results of the auction is planned for early January. The property’s owner—two entities managed by Brazilian developer Gilberto Bomeny—filed for Chapter 11 bankruptcy protection earlier this year to avoid a UCC foreclosure.
The auction has a reserve price of $70 million. Cirrus Real Estate Funding, the largest creditor in the case, has made a credit bid of $101.5 million. Cirrus alleges that Bomeny’s entities defaulted on a $70 million loan secured by the property.
Concierge Auctions will handle the sale and receive either a five percent buyer’s premium split with the broker or a flat fee of $750,000 if Cirrus wins with its credit bid. Gabriel Flores from ONE Commercial is marketing the site, which was initially listed for $175 million in April.
Bomeny’s entities purchased the hotel for $65 million in 2015. The building itself was constructed in 1950. In 2014, before Bomeny acquired it, city approvals were granted for Regalia on the Bay—a proposed 82-story tower designed by Arquitectonica that would have included residential units, hotel rooms, office space, retail areas, and parking.
Judge Isicoff also authorized closing the current Holiday Inn once an agreement is finalized; its franchise license is scheduled to end on January 5.
Gilberto Bomeny has previously been involved as a development partner in projects such as One Thousand Museum in downtown Miami and Regalia Residences in Sunny Isles Beach.
