Two downtown Miami office buildings are headed to auction next month after landlord Stonerock Capital lost a $65.7 million foreclosure judgment.
Atlanta-based Ardent Companies provided Stonerock with a $58.3 million mortgage to buy the buildings in 2022, the South Florida Business Journal reported.
Boca Raton-based Stonerock, led by Yaakov “Jacob” Handelsman, and its then-partner, Delray Beach-based Triple Double Real Estate paid $56.7 million for the properties, The Real Deal previously reported. Triple Double Real Estate left the venture in 2023.
The following year, an affiliate of Ardent Companies filed a foreclosure complaint in Miami, alleging Stonerock Capital defaulted on a $49.4 million mortgage. It claimed Stonerock had missed loan payments and failed to repay the loan when it matured on June 1, 2024. It also alleged Stonerock didn’t pay $1.2 million in property taxes for the properties in 2023, records show.
The foreclosure judgment, decided against two entities tied to Stonerock Capital, stems from $41.1 million in unpaid principal, with interest and fees bringing the total to $65.7 million, the outlet said.
The buildings are slated for online auction July 20.
The 12-story 150,500-square-foot building at 200 Southeast First Street was completed in 1958, according to property records. It has a data center and ground-floor retail. Tenants include a barbershop and a medical office.
The larger building, a 172,300-square-foot office at 44 West Flagler Street, was built in 1974 and is anchored by a First Horizon Bank. The Consulate General of Jamaica is a tenant.
The foreclosure adds to distress in South Florida’s commercial real estate market, where rising interest rates and high land costs have made refinancing more difficult.
Miami office leasing reached 918,000 square feet in the first quarter, according to Avison Young. The tech industry accounted for 37 percent of that, and banking, finance, insurance and real estate accounted for 29 percent. Downtown Miami had a 19 percent direct vacancy, among the highest of the city’s submarkets.
