A judge has ordered a new auction for a downtown Miami property after the original sale was challenged by its owner. The nearly one-acre site at 340 Biscayne Boulevard, currently home to a Holiday Inn built in 1950, was initially won by Cirrus with a $77 million bid last month.
The decision came after Brazilian developer Gilberto Bomeny, who owns the property through two entities, argued that the previous bidding process excluded potential buyers who were willing to pay more. U.S. Bankruptcy Court Judge Laurel Isicoff scheduled the new auction for January 28 following arguments from attorneys representing both Cirrus and Bomeny’s entities.
“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, which is overseeing the sale.
Bomeny acquired the property in 2015 for $65 million. The site is approved for redevelopment into an 82-story tower featuring residential units, hotel rooms, offices, retail space, and parking.
An affiliate of New York-based Cirrus—Joseph McDonnell—is listed as the largest creditor in bankruptcy proceedings filed by Bomeny’s entities last year to avoid foreclosure. Cirrus claims there was a default on a $70 million loan.
The initial auction ran from December 4 to December 17 with a reserve price of $70 million. The court also allowed a $101.5 million credit bid from Cirrus’ affiliate. When bidding closed, Cirrus was declared the winner.
Afterward, Bomeny’s legal team submitted a motion on December 25 seeking to overturn those results because of “constant changes and irregularities” during the process that allegedly prevented other bidders from participating. According to their motion, changes in start times by Sotheby’s Concierge Auctions led to confusion among prospective buyers; some faced technical problems or could not register or pay fees in time. At least one unregistered bidder reportedly intended to offer almost double Cirrus’ winning bid.
Cirrus responded on December 29 disputing these claims and accused Bomeny of refusing to accept the outcome: “its handpicked auctioneer of mishandling the auction so gravely that potential bidders were unable to participate.” They further noted that none of Bomeny’s cited bidders had registered or paid deposits required for participation.
Cirrus also stated that one supposed bidder had previously negotiated for months about purchasing the site for $140 million but ultimately did not proceed with an offer.
