Two office buildings in downtown Miami are at the center of a $42.3 million foreclosure lawsuit filed on September 6. The lawsuit, initiated by Atlanta-based AFF IV 200 Miami LLC, targets two properties owned by SRCTD 44-200 LLC, based in Deerfield Beach, and Cleveland Heights, Ohio-based FS Equity Investments II LLC.
The lawsuit focuses on a 12-story, 150,530-square-foot building located at 200 S.E. First Street and a 25-story, 172,292-square-foot building at 44 W. Flagler Street, also known as Courthouse Tower. According to property data firm Vizzda, the parties involved and the details of the case have been confirmed.
In May 2022, the borrowers secured a $58.36 million mortgage to purchase both buildings for a combined $56.7 million. The loan had an interest rate of SOFR plus 7.55%, with a maturity date of June 1, 2024. When the loan was originally issued, SOFR (Secured Overnight Financing Rate) was 1.2%. However, with today’s SOFR rate at 5.3%, the mortgage payments have increased substantially.