Lender sues downtown Miami WeWork owner over unpaid loan

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117 Northeast First Avenue (Getty, Gut Miami via Twitter)

UPDATE, January 26, 2:15 p.m .: The owners of a historic downtown Miami office building fully leased to WeWork face a foreclosure lawsuit.

Platform Capital Funding sued the owners of the security building, linked to an outstanding loan. The lender is asking for more than $ 46 million, including principal, interest, late fees and a deposit for a failed sale of the building, court records show. The lawsuit was filed against the owner of Security Building AR, Andrew Joblon, Richard Weisfisch, Arash Gohari and Daniel Gohari.

WeWork is not named in the lawsuit, but is the sole tenant of the 15-story building at 117 Northeast First Avenue. Security Building AR Owner, led by Weisfisch, paid $ 23.5 million for the property in 2015, converted it from residential condos to offices, and secured WeWork as the primary tenant.

Alan M. Grunspan, a shareholder in the law firm Carlton Fields which represents the owner of the Security Building, said in a statement to The real deal that the owner was “surprised to learn” about the foreclosure. “The owner and the lender have worked closely since the start of the pandemic and coordinated the use of WeWork’s security deposit to make all loan payments and keep the loan up to date,” Grunspan said, adding that the owner planned to file a motion to dismiss.

Platform Capital Funding attorney Henry Bolz did not respond to a request for comment. A spokesperson for Joblon, who heads the principal of Turnbridge Equities, said he was an unchecked minority partner in the property’s ownership and declined to comment further.

Platform Capital is seeking full repayment of the $ 38 million loan, which it claims it did not receive, along with a $ 5 million deposit from the failed sale to Inveniam Capital Partners, a financial and financial firm. technology which planned to buy the building in part with the funds raised. of a cryptocurrency auction.

The sale never took place and the auction was called off after the buyer alleged that their primary lender changed the language of the agreed-upon agreement.

The foreclosure lawsuit alleges that even though the sale was terminated, the borrower “failed to return” the deposit to the lender, which was required under the loan agreement.

The building, constructed in 1926, was listed on the National Register of Historic Places in 1989. WeWork opened in early 2018.

The coworking giant has consolidated its locations around the world over the past year. In Miami Beach, it announced it would close its location at 350 Lincoln Road. The owner, SML 350 Lincoln Inc., filed a lawsuit in August to claim allegedly unpaid rent totaling more than $ 19.5 million.

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