Receiver Alan Fine has been appointed to oversee the troubled 1212 Aventura mixed-use project after office condo owners were forced out of the property earlier this year. Miami-Dade Circuit Court Judge Thomas Rebull signed an order on Tuesday naming Fine as receiver for Medical District Developments, the developer of the nearly finished project at 21290 Biscayne Boulevard.
The 1212 Aventura development includes a senior living facility with 163 apartments, 39 office condos totaling nearly 26,000 square feet, and close to 30,000 square feet of retail space. The project is facing foreclosure after Medical District Developments allegedly defaulted on a $49.6 million mortgage from a lender affiliated with Las Vegas-based Dornin Investment Group.
Between November and January, Medical District Developments sold 25 office condos for a combined $9.4 million. Unit prices ranged from $164,100 to $1.1 million. However, buyers were later required by the city of Aventura to vacate their units in May after the developer allowed key permits and occupancy certificates to lapse.
Miguel Chamorro, attorney for Medical District Developments, declined to comment on the situation.
Victor Sanabria, lawyer for Dornin Investment Group’s affiliate, said: “We felt the court’s appointment of a receiver was necessary to protect and stabilize 1212 Aventura. We believe it will safeguard the property’s value and put the project back on track.”
The foreclosure complaint also names Rieber Developments—the project manager—and several contractors who have filed liens totaling almost $1 million for unpaid work. Bernardo Rieber, CEO of Rieber Developments, previously stated that his firm and others are owed money.
Glen Waldman, attorney for Rieber Developments, commented: “We are pleased the court entered the order. Things will now get attended to properly, which will benefit all parties.”
Alan Fine is a retired Miami-Dade judge with experience handling receiverships in commercial real estate foreclosures. In recent years he has overseen other distressed properties in South Florida.
According to Judge Rebull’s order, because Medical District Developments did not renew its master building permit or temporary certificate of occupancy, no one can legally occupy any part of 1212 Aventura and construction cannot be completed despite being about 90 percent finished. The assisted living facility remains non-operational and buyers cannot close on remaining office condos.
Meghhaa Kumaarr represents 17 office condo owners affected by these issues. She said: “This means the receiver will now be able to move forward with getting the master permit and the temporary certificate of occupancy reinstated so that they can go back into their units. Our clients have not been able to conduct their business, but they are still paying mortgages on their units. It’s been very disruptive.”
