Miami-based developer Metronomic Holdings is set to turn 17 local properties over to its lender following the results of a bankruptcy auction.
The debtor filed notice of the auction results in U.S. Bankruptcy Court on
March 22. While outside bidders did submit offers for many of the properties in the Coconut Grove and Little Havana areas, secured lender
Fuse Funding I LLC won all 17 auctions through credit bids, in many cases for only $100 more than the competing offer. The credit bids were for a combined $18.6 million, based on the amount of money Metronomic owes Fuse Funding. Its mortgage was for $17.7 million, plus interest.
However, two properties in Crystal Lake, Illinois, will be sold to third parties after bids of $800,000 and $425,000 were accepted and the creditor declined to exceed them.
“Fuse looks forward to concluding the legal process and enabling these 17 prime-located properties to be acquired and improved by capable developers for the betterment of our community,” said Meland Budwick attorney Daniel N. Gonzalez, who represents Fuse Funding in the case.
Metronomic filed Chapter 11 reorganization in September, bringing to a halt its plans to redevelop much of west Coconut Grove, and build apartment complexes, single-family homes and boutique hotels around Miami. The company had five outstanding mortgages, and the case files stated it raised more than $51.3 million from crowdfunding through Virginia-based Qidian.
Despite raising all that money, Metronomic completed only one building.
Kelly Beam owns 100% of Metronomic Holdings, and Ricky Trinidad was the manager of the company, according to court documents.
Pack Law attorney Joseph A. Pack, who represents the debtor, said he filed a motion to approve the results of the auction and expects it to be heard by Chief Judge Laurel M. Isicoff on March 31. The fate of the 12 other properties owned by Metronomic, which are covered by mortgages from other lenders, is yet to be determined, he said. Those include the 33,750-square-foot property at 3364, 3384, 3441 and 3461 Grand Ave. in Coconut Grove, where a major project was planned.
The properties Fuse Funding is set to acquire are:
The 20-unit Metropark building at 1651 N.W. Third St., where some construction began.
The 16-unit Plaza Celia apartment complex under construction at 2638-2640 S.W. 12th St.
CocoGrove, a six-unit townhouse building under construction at 2961-2967 Bird Ave.
Villas Beny More Dos, an 11-unit townhouse building under construction at 1780 S.W. Fifth St.
Villas Beny More Tres, a six-unit townhouse building under construction at 526 S.W. Second Ave.
Villas Beny More Cuatro, six-unit townhouse building under construction 1251-1259 S.W. Third St.
A single-family home under construction at 3364 Oak Ave.
3280 Grand Ave., proposed as a mixed-use building with 44 hotel rooms called Metronomic Place.
3100 Commodore Plaza, proposed as a mixed-use building with 22 hotel rooms called Commodore Place.
218-240 S.W. Seventh Ave., proposed as a 16-unit apartment building.
2534 S.W. Sixth St., proposed as a 23-unit short-term rental building.
2500 S.W. Eighth St., proposed as a 29-unit short-term rental building.
650 Beacom Blvd. proposed as a 23-unit short-term rental building. 903 S.W. 13th Court, proposed as six apartments.
640 S.W. Eighth Ave., proposed as an office building.
The 22-unit Metroplace apartment complex under construction at 1343 N.W. First St.
857 S.W. 14th Ave., proposed as a duplex.
The properties were marketed by Ronald L. Glass of R Riley Advisory Services.
Sign up here for the Business Journal’s free morning and afternoon daily newsletters to receive the latest business news impacting South Florida. For more business intelligence, follow us
on LinkedIn, Facebook, Twitter and Instagram.
South Florida Business Journal