(This story, in slightly different form, originally appeared in Incisive Media's Daily Business Review.)
MIAMI-One of the residential condominium developers that helped reshape the city's skyline and contributed to the area's condo glut has filed for bankruptcy. Cabi Downtown this week filed for Chapter 11 protection from its creditors, nearly seven months after completing Everglades on the Bay at 244 Biscayne Blvd.
Cabi Downtown is an affiliate of Cabi Developers, which has not filed for bankruptcy. The project's 410 condos came on the market just as the recession took hold. Developers are struggling to refinance construction debt that's coming due, and the few buyers they have are also having a tough time financing their purchases.
Miami-Dade County property records show Cabi has closed on the sale of 81 units at Everglades on the Bay. It has rented the ground floor to CVS Pharmacy.
In the bankruptcy filing, Cabi says it has more than $100 million in liabilities and more than $100 million in assets. Cabi listed 20 creditors owed from $15,000 to $912,272. Some of them include Gryphon Construction, the law firm Siegfried Rivera Lerner De La Torre & Sobel and Fullerton-Diaz Architects.
The $256-million construction loan Cabi obtained from Bank of America in 2005 first came due in December 2008 but was extended to February. Bank of America initiated a foreclosure suit July 31.
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