Texas Bank Files $12.5 Million Foreclosure Lawsuit Over Florida Warehouse

Photo byBROWARD COUNTY PROPERTY APPRAISER

Hollywood, FL – Woodforest National Bank, based in The Woodlands, Texas, has initiated a foreclosure action in Broward County, seeking to recover over $12.5 million from a local warehouse owner. The lawsuit, filed on October 3, targets David P. Frank and several companies under his management, alleging default on loan payments and seeking the sale of a Hollywood warehouse used as collateral.

The 8,640-square-foot warehouse, located at 1980 Grant St., is owned by Frank's company, 2130 SW 56th Terrace LLC. The foreclosure notice was filed the same day as the lawsuit, as Woodforest moves to claim the property following Frank’s default on a forbearance agreement reached earlier this year.

According to court documents, Frank and 11 businesses, including The Glove Store LLC and United Medical Trade Company LLC, obtained two revolving lines of credit worth $16 million from Woodforest in March 2021. After the borrowers failed to meet their financial obligations, they offered the Hollywood warehouse as collateral in a forbearance agreement executed in January 2024. However, the lawsuit alleges that Frank defaulted on the agreement by July 1, prompting the bank to seek foreclosure.

Woodforest is demanding the warehouse be sold to satisfy the unpaid balance, and is pursuing a deficiency judgment if the proceeds from the sale fall short of the debt. The bank is also seeking additional fees and costs associated with the default.

Originally built in 1961, the warehouse sits on a 0.17-acre lot and was purchased by Frank in April 2020 for $875,000. The property is currently listed for sale on LoopNet.com for nearly $2.4 million. The listing describes the building as fully renovated, featuring modern amenities, office space with floor-to-ceiling windows, and a versatile mezzanine area.

Frank, when contacted by The Business Journal, offered little comment, saying, "There is nothing going on right now," before ending the call.

This is not Frank’s first venture in warehouse investments. In April 2022, his company, The Glove Store, purchased a 54,001-square-foot warehouse in Pembroke Park for $12.83 million and sold it just six days later for $17.8 million to an affiliate of Boston-based Cabot Properties.

Despite multiple attempts, representatives from The Glove Store could not be reached for comment regarding the foreclosure lawsuit or the company’s current operations.

As the legal proceedings unfold, Woodforest National Bank continues its effort to recover the outstanding debt through the potential sale of the Hollywood property.