Brazilian developer Gilberto Bomeny is challenging the outcome of a recent auction for his downtown Miami property at 340 Biscayne Boulevard, which was won by Cirrus Real Estate with a $77 million bid. The site, currently home to a Holiday Inn built in 1950, has city approvals for an 82-story mixed-use tower.
Last week, entities controlled by Bomeny filed a motion in Miami federal bankruptcy court seeking to void Cirrus’ winning bid and order a new auction. The motion alleges that “constant changes and irregularities” during the sale process prevented other interested parties from participating.
The dispute is scheduled to be addressed by U.S. Bankruptcy Judge Laurel Isicoff at a hearing on Wednesday, Dec. 31. Judge Isicoff will decide whether to approve Cirrus’ purchase or reopen bidding for the nearly one-acre site.
Bomeny’s entities purchased the hotel property for $65 million in 2015 but filed for Chapter 11 bankruptcy protection earlier this year after defaulting on a $70 million loan from a Cirrus affiliate. Judge Isicoff previously authorized an auction and approved a $101.5 million credit bid by the Cirrus affiliate, which is the largest creditor.
Cirrus was declared the winner of the Dec. 17 auction after submitting the highest offer at $77 million. Five days later, attorneys representing the lender requested that Bomeny finalize the purchase agreement. However, Bomeny’s entities argue that due to issues with how Sotheby’s Concierge Auctions conducted the sale—including multiple last-minute changes to start times and technical problems—other potential bidders were excluded.
According to Bomeny’s motion, some prospective buyers could not register or pay fees due to communication lapses and platform access issues on auction day. The filing claims that brokers represented clients who intended to submit higher offers and that at least one bidder planned to offer nearly double Cirrus’ amount.
If Cirrus’ bid stands, no proceeds from the sale would go to other creditors beyond those affiliated with Cirrus, according to Bomeny’s filing. The developer is requesting that a new auction be scheduled for Feb. 9.
Attorneys for both Bomeny’s entities and New York-based Cirrus did not respond to requests for comment.
