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Wynwood Development Site Targeted In $23M Foreclosure

A developer that hoped to build a co-living apartment complex in Miami’s Wynwood Arts District has been hit with a $23 million foreclosure lawsuit.

Gamma FL Wynwood LLC, in care of New York-based Gamma Real Estate, filed a foreclosure complaint May 5 against New York-based Wynwood Gateway II LLC. It targets the 27,650-square-foot property at 166 and 179 N.W. 29th St., plus 169 and 179 N.W. 28th St. It has a four-unit apartment complex, but the site is mostly vacant.

The Collective, a New York-based co-living company that offers dorm-style residences, announced plans in 2019 to build its first Miami location on all five of those lots. It followed that up in 2021 by submitting a detailed site plan featuring a 12-story building with 108 apartments, 70 hotel rooms, 9,508 square feet of commercial space and 163 below-grade parking spaces. However, construction never commenced.

According to the complaint, Gamma issued the $23 million mortgage to Wynwood Gateway II in 2019. The loan matured June 30, 2021, without being repaid, and the borrower owes the full amount of principal, plus interest.

Both design services firm Bliss & Nyitray and law firm Wernick & Co. have pending lawsuits against Wynwood Gateway II over alleged nonpayment for services they provided for the Collective project. The developer has yet to respond to either lawsuit and was declared in default by the court.


Source:  SFBJ

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