Bankruptcy Watch: 340 Biscayne Boulevard (Downtown Miami)
- Arun Singh
- 4 days ago
- 2 min read
The Holiday Inn Port of Miami-Downtown at 340 Biscayne Boulevard in Downtown Miami is a high-profile development site that has entered bankruptcy proceedings. The owners, two entities managed by Brazilian developer Gilberto Bomeny, purchased the hotel property in 2015 for about $65 million.
In 2023, the owner took a floating-rate loan of approximately $70 million from the lender Cirrus Real Estate Funding, which later went into default. According to recent filings, the sale of the asset is now proceeding in a Chapter 11 bankruptcy auction set to begin online on December 3, 2025 and culminating with a live auction on December 17 in New York. The listing price is about $175 million, while the secured creditor holds a credit-bid right of roughly $101.5 million.
What Led to This Outcome, Capital and Market Structure Vulnerabilities
The property's capital stack included a floating-rate loan of about US $70 million at a time when interest rates were rising, creating an immediate refinancing burden.
While the site has significant "air rights" and was entitled for an 82-story mixed-use tower called Regalia on the Bay (374 condos, 120 hotel rooms, and about 500 parking spaces), the existing hotel operation remained in place, delaying redevelopment.
The borrower had previously filed for Chapter 11 in 2021 and reorganized in 2022, signaling earlier stress that may have been under-addressed.
Timing risk was a significant factor. The market backdrop has shifted, construction financing costs remain elevated, and converting from hotel to high-rise residential or hospitality is more complex and longer in duration than initially planned.
A Broader Pattern CRE Should Note
This case reflects a broader trend in commercial real estate: strong location and entitlement cannot replace disciplined capital structure design and careful timing. In hospitality-adjacent redevelopment sites, floating-rate financing combined with long-duration timelines creates heightened refinancing risk.
More broadly, as interest rates and construction costs remain high, projects underwritten during a lower-rate environment are now testing their structural resilience. The "value" in high-rise, mixed-use redevelopment is increasingly determined by execution discipline rather than zoning potential alone.
Final Thought
Structure without resilience is a vulnerability.
