MG Developer was hit with a foreclosure lawsuit over the Metro Parc South multifamily development in Hialeah after allegedly defaulting on $31.1 million in construction loans.
Slate Property Group and The Carlyle Group filed the suit Sept. 22 against the Coral Gables-based developer over a $105 million construction financing package.
The lenders allege MG defaulted on $31.1 million of the debt by allowing construction liens to be placed on the property, failing to make required reserve account deposits and failing to pay 2025 property taxes, according to court documents and a Vizzda report.
MG secured the construction financing in April 2025. The lenders sent default notices in January, May and June of this year, according to the complaint. Following the defaults, the lenders said they entered into a forbearance agreement with MG, which has since expired.
The lenders are now seeking $31.1 million, plus accrued interest and other amounts, as well as attorneys’ fees and court costs.
In 2024, MG paid $16.3 million across three deals for nearly 2 acres along East 24th and East 25th streets near Ninth Avenue. The developer broke ground last year on a 10-story, 347-unit multifamily project at the site.
“We fully recognize that the lender has a specific legal course in these matters. That said, we remain actively engaged in good-faith negotiations, including securing an additional investor, to bring this matter to a prompt resolution,” a spokesperson for MG Developer told The Real Deal.
Metro Parc South was part of MG’s three-phase Hialeah development. It completed the first one, called Metro Parc, in partnership with Baron Property Group, followed by Metro Parc North, which Baron later bought out. The foreclosure lawsuit against MG’s Metro Parc South does not name Baron or the other two projects.
Metro Parc North, with 347 units, is more than 50 percent leased and secured a $226.5 million refinancing in July. The development recently topped out and is slated for completion in late 2027.
Alirio Torrealba’s MG Developer has come under fire in recent months by several lenders claiming the firm defaulted on its debts.
The eighth and latest lawsuit reveals that MG is selling its interest in a North Bay Village property to an affiliate of Prosper for $20 million, according to records attached to the complaint. As recently as late last year, MG and Miami Beach-based Prosper, led by Jay Roberts, planned to jointly develop a 30-story, 147-unit condominium tower at 1681 and 1725 North Bay Causeway.
The debt disputes come roughly a decade after Torrealba began building his profile in South Florida real estate, rapidly expanding MG’s pipeline of condo and multifamily projects.
Since this summer, lenders have filed a wave of lawsuits against Torrealba and his affiliates. The creditors are not banks, but mostly entities tied to individual investors who provided loans ranging from $750,000 to $6 million, according to the complaints. The eight suits, all filed in Miami-Dade Circuit Court, do not seek foreclosure but generally allege breaches of promissory notes and collectively seek $21.4 million in repayment.
MG said in a statement that it is engaged in “good-faith discussions” with the vast majority of its lenders and has reached verbal agreements with some.
“Our focus is on formalizing the understandings reached, resolving the remaining outstanding matters, and putting these legal issues behind us in a responsible and constructive manner,” the firm said.
In a previous statement regarding the debt complaints, MG described the lenders as “long-standing investors and business partners,” saying it values those relationships and takes its obligations “very seriously.” The firm also cited “timing and liquidity challenges” related in part to its North Bay Village property, while emphasizing that it was not seeking to shift responsibility to Prosper.
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