(Crystal Proenza is associate editor of Real Estate Florida.)

FORT LAUDERDALE, FL-Madeleine LLC of New York, an affiliate of Cerberus Capital Management, has filed an emergency motion to halt the foreclosure sale of Las Olas Riverfront, a 246,000-sf retail complex so it can exercise its purchase right. An auction of the property scheduled Tuesday morning was abruptly halted, even after interested investors had already arrived.

Property owner Las Olas Riverfront Holdings LLC, made up of guarantors Brian Street and James Cohen of Boca Developers, defaulted on a $22-million loan from Wachovia Bank in March. Two months later, ACF Riverfront of New York purchased the loan from Wachovia and subsequently filed a foreclosure suit against the owners.

"The foreclosure sale was postponed based upon agreement between the senior lender, ACF Riverfront LLC, and the mezzanine lender, Madeleine, LLC, which provided certain mezzanine financing to the underlying borrower, Las Olas Riverfront Holdings, LLC," ACF and Madeleine clarified in a released statement, adding that no further comment is available at this time. Sources familiar with the transaction say the mezzanine lender did not want the foreclosure sale to go through because it plans to exercise the right to purchase the property at a reduced rate.