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Wynwood Office Owner Files For Bankruptcy To Stop Foreclosure

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The owners of the Gateway at Wynwood office building and a neighboring bank office filed Chapter 11 reorganization one day before their properties were to be taken away by a foreclosure auction.

Based in Valley Stream, Long Island, The Gateway at Wynwood LLC and 2830 Wynwood Properties filed Chapter 11 petitions in U.S. Bankruptcy Court for the Eastern District of New York on July 1. In his capacity as both firms’ chief restructuring officer, David Goldwasser signed the petitions.

In the declaration, Goldwasser stated that in 2020, the developers triumphed against a “wholly unexpected cyberattack” in which a $3 million payment to the general contractor was misdirected and pilfered by cybercriminals. He said that although the debtors are pursuing claims to recoup that money, the scenario caused it to lose important cash liquidity.

In June, Wilmington Trust, as part of a commercial mortgage-backed securities (CMBS) trust, won a $111.9 million foreclosure judgment against Gateway at Wynwood LLC and 2830 Wynwood Properties over a mortgage with $101.7 million in principal outstanding, plus interest and fees. The 14-story office building at 2916 N. Miami Ave. and the 5,187-square-foot bank branch at 2830 N. Miami Ave. were slated for court auction July 2. That auction was canceled due to the bankruptcy filing.

However, on June 27, the CMBS trust assigned its right to bid through the final judgment at auction to 2916-2994 Gateway LLC, managed by Trevor Smith of CIRE Real Estate Advisors in San Diego.


Source:  SFBJ

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