Cirrus Real Estate Partners has secured the winning bid in a second bankruptcy auction for a downtown Miami development site, paying $95 million—$18 million more than its previous winning offer. The property, located at 340 Biscayne Boulevard, covers nearly one acre and currently hosts a 10-story Holiday Inn hotel.
The new auction was held after Brazilian developer Gilberto Bomeny’s legal challenge resulted in the original win by Cirrus being overturned. Concierge Auctions managed both auctions, with Gabriel Flores of One Commercial listing the site. The sale remains subject to approval by U.S. Bankruptcy Court Judge Laurel Isicoff, who is expected to review the deal on February 11.
Cirrus, based in New York and led by Joseph McDonnell, initially won the first auction last month with a $77 million credit bid after opening bids started at $72 million. However, Bomeny’s ownership entity argued there were “constant changes and irregularities” in the process that excluded other potential bidders who might have offered higher amounts. In response, Cirrus claimed that “other potential bidders hadn’t registered for the auction and submitted a required $250,000 deposit,” accusing Bomeny of being “unwilling to accept the auction’s outcome.”
Judge Isicoff ordered a second auction this month. During Wednesday’s event, Cirrus made an opening credit bid of $77 million and competed against another unknown bidder in $5 million increments until reaching $95 million.
The property was purchased by Bomeny for $65 million in 2015 and is approved for redevelopment into an Arquitectonica-designed tower featuring 374 condominiums, 120 hotel rooms, office space, retail areas, and 500 parking spaces.
Cirrus initiated Uniform Commercial Code foreclosure proceedings against Bomeny’s entity in 2024 over an alleged default on a $70 million loan. Afterward, Bomeny’s affiliate filed for Chapter 11 bankruptcy protection.
Bomeny has previously been involved as a development partner in projects such as One Thousand Museum condo tower and Regalia Residences condo.
These foreclosure actions are taking place amid broader financial challenges for commercial property owners across South Florida. Elevated interest rates since increases began in 2022 have raised costs for borrowers with floating-rate debt or maturing loans without interest rate caps. Refinancing options have become more expensive as well. Although the Federal Reserve reduced its benchmark rate several times during 2023 and early 2024, it did not lower rates further this month.
In addition to higher borrowing costs, landlords face increased insurance premiums along with rising labor and material expenses. Some owners who aimed to benefit from South Florida’s rental boom have instead opted to sell their sites or seek new partners; others have lost properties through foreclosure.
A similar case occurred nearby when CGI Merchant Group lost control of its Gabriel Downtown Miami hotel at Marquis Tower following a UCC foreclosure initiated by Madison Realty Capital over a $60.4 million loan.
Cirrus representatives and attorneys for Bomeny’s entities did not immediately respond to requests for comment regarding the latest outcome.
