The bankruptcy court process for a downtown Miami property at 340 Biscayne Boulevard has taken another turn after Judge Laurel Isicoff ordered a new auction. The site, currently home to a Holiday Inn built in 1950, was initially won by Cirrus with a $77 million bid last month.
Brazilian developer Gilberto Bomeny, who owns the property through two entities, argued that the previous auction process excluded potential buyers who were willing to pay more. After hearing arguments from attorneys representing both Cirrus and Bomeny’s entities on December 31, Judge Isicoff set January 28 as the date for a new auction.
Chad Roffers, CEO of Sotheby’s Concierge Auctions—which is overseeing the sale—said: “To ensure that all interested parties have sufficient time to perform due diligence on the property and complete the vetting and bidder registration process, it was determined that additional time was appropriate.”
Bomeny purchased the nearly one-acre parcel with its 10-story, 200-room hotel for $65 million in 2015. The site has approval for an 82-story tower featuring condos, hotel rooms, offices, retail space, and parking.
An affiliate of New York-based Cirrus is listed as the largest creditor in the Chapter 11 bankruptcy case filed by Bomeny’s entities last year to avoid foreclosure. Cirrus claims there was a default on a $70 million loan. The initial auction began December 4 and ended December 17 with a reserve price of $70 million; Judge Isicoff also approved a $101.5 million credit bid by Cirrus’s affiliate.
After losing at auction, Bomeny’s entities filed a motion alleging “constant changes and irregularities” in how Sotheby’s Concierge Auctions managed the sale. According to their lawyer, several potential bidders could not participate because of last-minute schedule changes and technical problems during registration or payment processes. One such bidder reportedly intended to offer almost double Cirrus’ winning bid.
Cirrus disputed these claims in their own motion dated December 29: “the property owner was ‘unwilling to accept the auction’s outcome’ and falsely accused ‘its handpicked auctioneer of mishandling the auction so gravely that potential bidders were unable to participate.’” They further stated that none of Bomeny’s alleged bidders registered or paid the required deposit.
One prospective buyer had previously discussed purchasing the site for $140 million but did not proceed before the original auction took place.
Linda Jackson (attorney for Bomeny) and Daniel Gonzalez (attorney for Cirrus) did not respond to requests for comment.
