Construction has started at the future site of the Mercedes-Benz-branded residences in Miami, but behind the scenes, a lawsuit is playing out and putting the project in jeopardy.
Michael Stern, the developer behind Mercedes-Benz Places in Brickell, needs to find financing for the planned towers.
Days after acquiring a defaulted bridge loan, a Cottonwood Group affiliate filed for foreclosure on the Brickell property. The firm had reportedly held the loan for about a month before the filing, according to Bisnow.
The publication reports that JDS Development purchased the parcels of land, including city-owned property, for $24 million in 2020. Maxim Capital Group provided the original loan for about $86 million, but it extended the maturity date of the loan.
JDS’ affiliate, 191 SW 12 Owner LLC, didn’t repay its loan upon its Jan. 15, 2025, maturity date, according to the suit. According to the South Florida Business Journal, Maxim Capital Group transferred that loan in March to Cottonwood affiliate CWRE SSF Flamingo Capital.
“We are aware of the action recently filed by a bridge lender related to a routine loan maturity, and are in active discussions with them to reach an amicable and swift resolution,” a JDS Development representative told Bisnow in a statement.
“We are fully committed to the long-term success of the project and we remain focused on completing it to the highest standard of excellence.”
Bisnow reports that the loan is for $775 million and that the suit does not directly name JDS Development Group, nor Stern. It does name construction vendors who have filed liens against the developer.
The South Florida Business Journal reports that six construction lien foreclosure suits have been filed against 191 SW 12 Owner LLC, which is managed by Stern.
Luxury developer
JDS Development Group describes the future Mercedes-Benz Places as a “new era of urban living.” The branded residence will offer five-star amenities, including several pools, a screening room, and parks.
The residential tower will have 791 residences, ranging from studios to three-bedroom condos priced up to $4 million, within the 67-story tower.
In addition, there will be a 174-room hotel and retail on the lower levels.
There’s no word on how the lawsuit will affect the construction timeline, which was slated to be finished by 2027.
Realtor.com® reached out to JDS Development for comment.
One of JDS’ most famous projects is in Manhattan—111 West 57th Street. Known as the skinny building, it rises 1,428 feet with full-floor or duplex residences, most with sweeping views of Central Park or the city skyline.
