Florida Warehouse Owner Files for Liquidation to Stop $10 Million Foreclosure

Photo byCanva

If you’ve noticed some buzz around a big warehouse in Hialeah, here’s the detail on what’s going on.

So, the owner of a sizable manufacturing warehouse in Hialeah, known as Estrella Enterprises, has recently filed for liquidation. This move comes in response to a foreclosure lawsuit that was filed against them last year. Quite the dramatic twist, right?

Here’s what’s happening: Estrella Enterprises, which operates out of a 63,570-square-foot warehouse on West Fourth Avenue, is now in the process of liquidating its business assets. The company filed an assignment for the benefit of creditors in Miami-Dade County Circuit Court. The person now managing the liquidation is attorney Philip J. Von Kahle from Fort Lauderdale.

The primary asset in question is the warehouse itself, which used to be home to Gilda Industries, a company known for making Cuban crackers. The warehouse, sitting on 2.1 acres, is a pretty valuable piece of real estate.

The big issue? Estrella Enterprises is deep in debt. They owe a whopping $10.66 million on their mortgage to Benworth Capital Partners based in Coral Gables. On top of that, they have about $386,000 in local taxes and $25,000 in legal fees. It’s a tangled web of financial woes!

Benworth Capital filed a foreclosure lawsuit in August 2023. They claim that Estrella Enterprises defaulted on their mortgage payments, which were supposed to start on January 1st. The lender is now trying to recoup the $10 million principal plus interest and fees. The lawsuit is still winding its way through the courts.

In the latest development, Von Kahle has enlisted Moecker Realty, a firm associated with his law office, to sell the warehouse. The real estate broker is set to earn a commission of 4% from the sale. However, Benworth Capital isn’t too thrilled about this. They’ve filed an objection, arguing that any sale fees should come from other assets of Estrella Enterprises, not from the warehouse itself, which is their collateral.

Currently, the warehouse is up for sale online, with a price tag of $13 million. It’s listed as vacant, but it’s definitely a prime piece of real estate that could attract plenty of interest.

That’s the lowdown on the situation with Estrella Enterprises. It’s a story of financial struggle and legal battles, but it’s also a reminder of the challenges businesses can face. Stay tuned for more updates as this story develops!

Feel free to share your thoughts or ask questions—let’s keep the conversation going!