A Coral Gables developer building a trio of apartment towers in Hialeah is now fighting off a foreclosure lawsuit over an alleged $31 million default, along with eight separate lawsuits from individual investors seeking more than $21 million. MG Developer, led by Alirio Torrealba, is at the center of the litigation tied to its Metro Parc South project, a planned 347-unit tower that was supposed to be the third phase of the company’s Metro Center development along East 24th and 25th streets.
The foreclosure suit was filed on September 22 by Scale Lending, a joint venture between Slate Property Group and The Carlyle Group, according to The Real Deal. The lenders allege MG Developer defaulted on $31.1 million in construction loans and are now seeking that amount plus accrued interest, attorneys’ fees and court costs. Scale Lending had provided the $105 million construction financing package behind Metro Parc South, financing that hawkinscre.com had reported MG Developer secured for the planned 10-story, 347-unit building.
According to court documents and Vizzda cited in the same report, lenders allege MG Developer failed to make required reserve-account deposits, allowed construction liens to pile up on the property, and failed to pay 2025 property taxes. The lenders had already sent default notices in January, May and June of this year and entered into a forbearance agreement with MG Developer, but that agreement expired after the defaults continued, per the report.
A Wave of Investor Lawsuits Beyond the Foreclosure
The foreclosure case is just one front in a broader legal fight facing Torrealba and his affiliates. Lenders have filed a wave of lawsuits against him, and eight separate suits are now pending in Miami-Dade Circuit Court alleging breaches of promissory notes, seeking a combined $21.4 million in repayment. The report notes the creditors behind those suits are mostly entities tied to individual investors, who provided loans ranging from $750,000 to $6 million apiece…