Aby Rosen Under Contract to Sell Lincoln Road Commercial Building for $14M
Aby Rosen, a well-known real estate investor, has signed a contract to sell his commercial building on Lincoln Road, Miami Beach, for $13.6 million. This sale could address his debt issues related to the partially vacant building.
Aby Rosen is selling his commercial building on Lincoln Road for $13.6 million to Tricera Capital, led by Ben Mandell. Tricera’s partners in this purchase have not been disclosed.
In January, Wilmington Trust sued Rosen’s entity for defaulting on payments for a $17 million mortgage loan, claiming $15.1 million is owed.
The one-story building, built in 1945, is located at 318-334 Lincoln Road and has a 49.7% occupancy rate. Its tenants include Mr. Jones nightclub, Sweet Life Gelato, and South Beach Munchies Latin Cafe.
The $13.6 million sale price represents a 33.7% discount from RFR’s purchase price of $20.5 million in 2019. The sale will not fully cover the $15.1 million debt, and it is unclear how the $1.5 million shortfall will be managed.
Tricera Capital, an investment firm focused on commercial and mixed-use real estate, has acquired approximately 30 properties with a total value of $1 billion.
Rosen faces larger financial problems in New York, including foreclosure on his property at 522 Fifth Avenue over a $224 million loan and another $80 million debt in Gowanus.
Despite his issues, Rosen has development plans in South Florida, including a skyscraper project in downtown Miami featuring a hotel, residential units, and a garage.
The commercial real estate market in South Florida has seen an increase in unpaid debt subject to foreclosure, reaching $226.3 million this year, a 108% increase from the second half of last year.
The sale of Rosen’s building on Lincoln Road could alleviate some of his financial burden, though it does not resolve all his debt problems. Despite his challenges, Rosen continues with his development plans in Miami, reflecting the volatility and opportunities in South Florida’s real estate market.
Source: Lidia Dinkova, The Real Deal.
