There’s been a major shake-up at The Gabriel hotel in downtown Miami, and it’s raising a lot of eyebrows. The once-promising 15-story hotel at 1100 Biscayne Blvd has now been handed over to its lender, Madison Capital Group, in a deal valued at $62 million. This transfer, finalized through a deed in lieu of foreclosure on August 23, signals the end of a tough chapter for the property’s former owners.
So, what led to this? The Gabriel was previously under the control of CGI 1100 Biscayne Management, part of Miami-based CGI Merchant Group. But when financial pressures mounted, the company found itself in a tough spot. Rather than going through the painful process of foreclosure, CGI decided to voluntarily transfer ownership to 1100 Biscayne Propco LLC, an affiliate of Madison Realty Capital, which had taken over the loan after CGI allegedly defaulted. The paperwork was handled by Jerold C. Feuerstein, an attorney from the New York-based law firm Kriss & Feuerstein, LLP.
This move came after CGI struggled to keep up with the rising costs and economic challenges that have hit many in the hospitality industry hard. They were tied to a $60.4 million loan from Madison Realty Capital, and as the market continued to shift, the hotel’s performance didn’t meet expectations. CGI acknowledged these difficulties, citing uncontrollable circumstances like rising debt costs and broader market conditions as key factors.