The owner of Miami Beach’s Sixty Sixty Resort thwarted a foreclosure auction at the last minute by filing for bankruptcy.
Coconut Grove-based Bloom Hotels 6060 filed a chapter 11 petition in Miami federal court on Monday, a day before the 16-story waterfront building at 6060 Indian Creek Drive was set to be sold to satisfy a lender’s $23.7 million judgment, the South Florida Business Journal reported.
The owner listed assets and liabilities each in the $10 million to $50 million range, according to the petition signed by the entity’s manager, Richard Valdes. Bloom Hotels 6060 owns all 87 condo-hotel units at the Sixty Sixty, which was completed in 1992 and converted to a condo-hotel in 2005.
In 2022, an affiliate of Bloom Hotels 6060 paid $23.5 million for the then-82-key property, acquiring all of the units from a joint venture between Integra Investments and Sagar Desai’s Activate Hospitality.
At the time, the buyer included Miami-based Bloom Ventures, led by CEO David Harari, as the lead partner of Bloom Hotels 6060. The firm planned to operate Sixty Sixty as a full hotel, possibly under a Hilton brand, expand the room count and renovate the building. But Bloom Ventures sold its interest shortly after the 2020 purchase.
In June of last year, De Paz Family Investment filed a foreclosure lawsuit against Bloom Hotels 6060, the property’s condo association and loan guarantors Valdes, Daniel Araf and Todd Linden. The trio manage Miami-based entities that own Bloom Hotels 6060, corporate records show. Linden and Valdes lead Miami-based Circle Capital Partners.
De Paz alleged Bloom Hotels 6060 defaulted on a $21 million loan taken out in 2023. In December, Miami-Dade Circuit Court Judge Beatrice Butchko Sanchez granted final judgment in favor of De Paz, including missed interest payments and fees. A week ago, the judge denied Bloom Hotels 6060’s motion to cancel the Feb. 17 foreclosure sale, court records show.
Bloom Hotels 6060’s largest unsecured creditors include Turkey-based GNCR Holdings, which is owed $2 million; Miami law firm Garcia-Menocal, Irias & Pastori, which is owed $1.16 million; and Davie-based ACOE 1, which is owed $867,863, the bankruptcy petition states.
— Francisco Alvarado
