Saddled with estimated debt that could reach $500 million to 200 creditors, Cabi Downtown LLC, the Mexican owners of the one-year-old, $300 million
Everglades on the Bay (centered photo below) community have filed for Chapter 11 protection under the U.S. Bankruptcy Code.
The twin-tower, 49-story project has closed only 9 percent of its 849 units for an estimated total sales of $31 million, according to Bal Harbour, FL-based Condo Vultures® Bulk Deals Database.
A hearing is set for Sept. 2 to clarify the total debt and assets involved, as well as drafting a more complete list of creditors, according to court records.
The owners stated in their Aug.18 bankruptcy filing they owed between $100 million and $500 million.
A $256 million first mortgage was due in February of this year. The condo is located on the former site of the Everglades Hotel at 250 Biscayne Blvd.
"This is the first new condo tower in Greater Downtown Miami to seek bankruptcy protection," says Peter Zalewski, (middle right photo) a principal with Condo Vultures® LLC, a real estate consultant.
Many of the other large creditors are law firms, construction companies, and product/parts suppliers. Zalewski says “two sizable creditors worth noting are the separate condominium associations for each of the two towers in the complex.”
On Jan. 26, 2008, Cabi CEO Jacobo Cababie died, prompting a management change in the corporation that owns Everglades on the Bay.
Cabi Downtown's members are Levy, Elias Cababie Daniel, Abraham Cababie Daniel, Rafael Harari Tussie, and Jaime Dayan Tawil, according to the Florida Secretary of State.