The bankruptcy court process for a downtown Miami property at 340 Biscayne Boulevard will continue after a judge ordered a new auction. The site, which houses a Holiday Inn hotel built in 1950, was previously won by Cirrus with a $77 million bid last month.
Judge Laurel Isicoff of the U.S. Bankruptcy Court scheduled the new auction for January 28 following arguments from attorneys representing both Cirrus and entities controlled by Brazilian developer Gilberto Bomeny, who owns the property. The dispute centers on claims that the previous bidding process prevented higher offers from being considered.
“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 managing the sale.
Bomeny purchased the nearly one-acre parcel and its 10-story, 200-room hotel for $65 million in 2015. The property is zoned for redevelopment into an 82-story tower featuring residential units, hotel rooms, offices, retail space, and parking.
Cirrus is also involved as a creditor in ongoing bankruptcy proceedings related to the property. According to court documents, Cirrus alleges that Bomeny’s entities defaulted on a $70 million loan and initiated bankruptcy proceedings last year to avoid foreclosure.
The original auction opened bids on December 4 and closed December 17 with a reserve price of $70 million. Judge Isicoff had approved a credit bid of $101.5 million by Cirrus’ affiliate prior to declaring them the winning bidder.
However, Bomeny’s representatives filed a motion on December 25 challenging the outcome. They cited “constant changes and irregularities” during the sale process that they claim excluded other potential bidders. According to their motion, changes in auction timing by Sotheby’s Concierge Auctions led to confusion among prospective buyers; some reported technical difficulties or lack of communication that prevented registration or payment of required fees. Bomeny’s lawyer alleged that at least one interested party intended to submit an offer close to double Cirrus’ winning bid.
Cirrus responded in court filings by disputing these claims and stating: “the property owner was ‘unwilling to accept the auction’s outcome’ and falsely accused ‘its handpicked auctioneer of mishandling the auction so gravely that potential bidders were unable to participate.’” The company also argued that none of Bomeny’s purported bidders registered or submitted required deposits for participation.
Court records further show that one potential buyer had discussed purchasing the site for $140 million before withdrawing from negotiations ahead of the auction date.
