Brighton Capital Advisors’ (BCA) financial expertise brought resolution to a 4-year legal battle, thus securing the purchase of Fontainebleau Park Plaza on behalf of their client, MG3 Group.
MG3 Group (composed of partners Hernan Leonoff, Marcelo Saiegh, and Gustavo Bogomolni) has purchased and assumed the existing debt on Fontainebleau Park Plaza, located in Miami, FL. At the time of the purchase, the 234,500 square foot shopping plaza, built in 2014, was in default under the terms of their loan and had been the subject of ongoing litigation and a pending foreclosure. BCA was retained by MG3 to negotiate on their and the seller’s behalf with the special servicer the reinstatement and assumption of the defaulted loan. Prior to BCA’s involvement, MG3 and the seller had attempted to negotiate the reinstatement/assumption with the special servicer and were unsuccessful.
By leveraging its legal and servicing expertise, BCA was able to negotiate and accomplish three key goals: 1) BCA negotiated with the special servicer on behalf of seller the discontinuation of the litigation and foreclosure action, which resulted in the loan being reinstated; 2) BCA on behalf of MG3 and the seller negotiated a 70% reduction in special servicer’s fees, including default interest; and 3) BCA negotiated and coordinated the assumption of the existing $49M debt as part of MG3’s approximately $73M purchase of the plaza.
“The BCA team really made a difference in the transaction,” said Leonoff. “Their in-depth knowledge and understanding of the issues and their strong relationships in CMBS servicing enabled us to get the deal done.”
Although future performance of retail has been questioned amidst the growing share of e-commerce, the strength of well-positioned assets in the Miami-Dade brick-and-mortar retail market has been demonstrated by steadily increasing rental rates.
The plaza is located within minutes of Miami International Airport, the 826/836 highway interchange, and Florida International University’s main campus. At the time of purchase, the plaza was fully leased to the following tenants; Walmart Supercenter, AT&T, Texas Roadhouse, Comcast, and LA Fitness.
Since its founding in 2003, MG3 Group has leveraged its expertise in investment management, property management, development, design, construction, leasing, and financing throughout Florida. The group currently manages over $540M worth of assets and offers a Real Estate Investment Trust (REIT), allowing investors to earn dividends from its properties.
As stated by Michael Cohen, BCA Managing Partner, “It was BCA’s privilege to work with such an esteemed group in the commercial real estate investment community such as MG3. The opportunity presented by the Fontainebleau Park Plaza is unquestionable, and it represents a powerful step forward for the investment group.”