Alirio Torrealba and his MG Developer were hit with four lawsuits this week alleging defaults on $2.2 million in preferred equity and millions more in loans tied to several South Florida holdings. The Coral Gables-based developer, which has a hefty pipeline spanning from Hialeah to North Bay Village, has spent over a decade building its reputation in the region.
In a statement, MG conceded it’s experienced some disruptions in recent months, including with liquidity, but added that it takes its obligations to the plaintiffs, who are long-time MG investors and partners, “very seriously.”
MFD International LLC and Yosse LLC, both linked to Antonio Zeiter, claim over $3.4 million in overdue debt. These include a $1.5 million balance on two loans on the 176-key Regency Miami Airport by Sonesta hotel, $517,000 in additional hotel-related loans, and $1.4 million across two loans for a Coral Gables project. The suits seek principal, accrued interest, and default penalties.
In a separate action, Area NBV and Area DRL allege MG failed to repay $2.2 million in preferred equity due in May for projects in North Bay Village and Doral. Now seeking over $2.4 million including returns, the plaintiffs—managed by Leonard Kreimer of Area Capital—also claim MG misrepresented its ownership stakes in the development sites.
Kreimer and his attorney declined to comment, and Zeiter’s attorney didn’t return a request for comment.
MG is in talks with the plaintiffs, expecting to resolve disputes out of court, the firm said in its statement.
MG attributed the disruptions to liquidity challenges involving its North Bay Village project, which MG plans in partnership with Prosper Group. “Certain payments anticipated… have not been received within the originally expected timeline,” the firm stated, while clarifying it is not shifting responsibility to its partners. MG added it is in talks to resolve these disputes out of court.
For its part, Prosper said it’s focused on advancing the North Bay Village project, and the firm is neither involved with MG’s financials nor its investors and the suits.
In North Bay Village, MG plans an over 140-unit condo tower in partnership with Miami Beach-based Prosper Group, led by Jay Roberts, and it revealed plans two years ago for a 552-unit apartment complex in Doral.
Inside the claims
The complaints include documents showing that MFD and Yosse have financed and invested in MG ventures since last year.
A September 2025 agreement shows MG Regency Airport had a $7.2 million debt to MFD and Yosse, and that MG Regency secured an additional $2 million advance in two loans as a way to show liquidity to obtain a loan on Sonesta. MG was successful, obtaining a $23 million refinancing from Interaudi Bank.
In January, MG Regency borrowed another $1 million from MFD meant to pay off delinquent 2024 and 2025 property taxes on the hotel, according to records.
Records included in the complaints also indicate that as of earlier this year, MG affiliates were overdue on loans and investments separate from the ones outlined in the lawsuits. According to a March 20 document, several MFD loans were overdue, including $5 million provided for some of MG’s Hialeah projects, and $1.7 million to another MG affiliate, including interest.
MFD claimed its $1.4 million investment into entity 3600 Ponce LLC, tied to a residential property in Coral Gables, was overdue, according to the documents. MG said it has since sold its interest in 3600 Ponce to MFD’s Zeiter.
An “acknowledgement and confirmation of debt” signed by Torrealba March 20 and included in Yosse’s lawsuit shows overdue repayments for several loans and investments made to MG affiliates, including $4.7 million provided for MG’s Hialeah project affiliate.
The acknowledgements only memorialize the amounts are due and state that the borrower and creditors don’t dispute the amounts.
MG said it would be inaccurate to combine loan values listed in the lawsuits because they “involve different investments, agreements, entities and transactions” done over years, and this wouldn’t correctly reflect “the nature or current status” of the matters.
Area’s lawsuit lists Torrealba and his son, Diego Torrealba, as personal guarantors on the preferred equity redemptions. When MG’s affiliates failed to make the May quarterly payment, the firm’s senior accountant wrote a message to Kreimer apologizing for the delay, according to the complaint.
Internal messages included in the Area complaint show MG’s accountant apologizing for missed timelines and requesting extensions, though the plaintiffs claim multiple promised payment dates passed without action.
The lawsuits should be put in context of MG’s activity as a whole, as the firm still is advancing projects and navigating complex capital deals, MG said in its statement.
In June, MG, in partnership with Vertical Developments, scored $100 milliion from Benmark Capital for the eight-story Alhambra Parc mixed-use luxury condo project in Coral Gables, where it also plans The George project with 13 townhomes.
The firm is focused on honoring its dues to investors and business partners and “resolving these outstanding matters responsibly.”
