57-Story Miami Tower’s Retail Condos Facing Foreclosure Auction

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It looks like the retail space at the base of Miami's 57-story 50 Biscayne condominium is facing some serious financial trouble. After the owner lost a $4.27 million judgment, the retail condos are now slated for a foreclosure auction – a big shake-up in downtown Miami's real estate scene.

What’s the Story Here?

The whole situation kicked off when Miami-Dade County Circuit Court Judge Reemberto Diaz awarded Fort Lauderdale-based Fuse 10 LLC a foreclosure judgment against the current owner, AZB I LLC of Boca Raton, back on August 29. At the heart of this legal battle is a mortgage that still had $3.4 million in principal, plus interest and fees. The details were confirmed by property data firm Vizzda.

The foreclosure involves a total of 7,531 square feet of commercial space, specifically units CU-1, CU-2, and CU-3 at 50 Biscayne Blvd. These units are now set to hit the online auction block on October 30. That’s quite a prime spot in downtown Miami, so it’s definitely catching some attention.

A Tangled Financial Web

Attorney Michael J. Alterman, who represents AZB I, tried to fight back by filing an answer to the complaint, denying the allegations. But despite that, the judge decided the property should still head to foreclosure. Unfortunately, Alterman wasn’t available for further comments.

The foreclosure judgment also mentions TTN Holdings LLC, which holds a $2.86 million second mortgage, and Karan Investment Trust, with a $60,000 third mortgage. However, Fuse 10’s first mortgage takes priority in the auction, meaning they’ll get paid first before any junior debts are settled.

How Did We Get Here?

AZB I originally acquired these commercial condos back in May 2023 for $5.8 million from TTN Holdings, which helped finance the deal with a second mortgage. Meanwhile, the buyer also took out a $3.4 million first mortgage from Fuse 10, which had an interest rate of 11.75%. Things started to unravel when Fuse 10 filed a foreclosure complaint against AZB I in February, citing defaults in July 2023. These included missed loan payments and unpaid property taxes and insurance. As of now, most of the space is unfortunately vacant.

To make matters even worse, the condo association also jumped into the legal mix, filing a lawsuit against AZB I for allegedly not paying its dues.

Attorney Josh M. Rubens, who represents Fuse 10 as part of the Fuse Group, declined to comment on the case, leaving us to wonder how this situation might unfold.

The Bigger Picture

The 50 Biscayne condominium, which boasts a whopping 547 units, was built back in 2007 and sits across from Bayfront Park. Interestingly, a recent online listing by Fortune International Group showed that all the commercial space is up for lease at $95 per square foot. This listing includes an additional 2,500-square-foot mezzanine and around 4,600 square feet of outdoor space.

As this high-profile foreclosure heads to auction, it’s clear that Miami’s downtown real estate market continues to be full of surprises.