The sale of a downtown Miami property at 340 Biscayne Boulevard, initially awarded to Cirrus for $77 million, will be revisited after a bankruptcy court judge ordered a new auction. The decision follows complaints from the property’s owner, Brazilian developer Gilberto Bomeny, who argued that the previous bidding process excluded potential buyers willing to pay more.
U.S. Bankruptcy Court Judge Laurel Isicoff scheduled the new auction for January 28 after hearing arguments from attorneys representing both Cirrus and two entities controlled by Bomeny. The nearly one-acre site currently houses a Holiday Inn built in 1950 and is approved for redevelopment into an 82-story tower with residential units, hotel rooms, offices, retail space, and parking.
“To ensure that all interested parties have sufficient time to perform due diligence on the property and complete the vetting and bidder registration process, it was determined that additional time was appropriate,” said Chad Roffers, CEO of Sotheby’s Concierge Auctions.
Bomeny acquired the site in 2015 for $65 million. The current dispute arose after his entities filed for chapter 11 bankruptcy last year in response to a UCC foreclosure initiated by Cirrus. Cirrus claims there was a default on a $70 million loan and is represented by Joseph McDonnell as its largest creditor.
The initial auction took place between December 4 and December 17 with a reserve price of $70 million. A $101.5 million credit bid by Cirrus was also approved by the court; ultimately, Cirrus was declared the winning bidder when no higher offers were received.
However, Bomeny’s entities challenged these results with a motion filed on December 25. They cited “constant changes and irregularities” during the sale process that allegedly prevented other bidders from participating. According to their lawyer, changes in auction timing made by Sotheby’s Concierge Auctions led to confusion among prospective bidders. Technical issues reportedly also hindered registration or payment of required fees.
The motion further alleges that at least one interested party had intended to submit an offer nearly double Cirrus’ winning bid but could not participate due to these complications.
Cirrus responded on December 29 disputing these claims: “the property owner was ‘unwilling to accept the auction’s outcome’ and falsely accused ‘its handpicked auctioneer of mishandling the auction so gravely that potential bidders were unable to participate.’” The company also noted that none of Bomeny’s alleged bidders registered or paid the necessary deposit for participation.
Additionally, according to Cirrus’ filings, one prospective buyer had previously negotiated to purchase the site for $140 million but did not finalize any agreement prior to the auction.
