Chip Abele’s mixed-use development that has Publix as a tenant in downtown Hollywood is threatened with a $121.4 million foreclosure.
An affiliate of Miami Beach-based Arc Asset Management sued the developers of The Circ for foreclosure, the South Florida Business Journal reported. The 25-story complex is at 1740-1776 Polk Street.
It includes the 111-key Circ Hotel, the 386-unit Circ Residences, a 48,000-square-foot Publix and a rooftop Olivia Restaurant & Bar.
The lawsuit, filed April 30, targets HC Real Property LLC, Circ Hotel LLC, and Circ Residences LLC, along with guarantors Chip Abele, Peter Jago, Daniel McCarthy and Harish Mehta.
Abele is the CEO of GCF Development.
The financial trouble allegedly began shortly after the developers converted the residential portion from rentals to condos in early 2024. Deutsche Bank issued $133.4 million in refinancing for the conversion. However, the developer defaulted after missing payments in June 2025 and failing to repay the debt by its February 2026, maturity date, according to the lawsuit. Arc Asset Management’s affiliate acquired the loan from Deutsche Bank in December.
Only 32 condos, fewer than 10 percent, have been sold, with prices ranging from $450,000 to $1.3 million, the outlet said. The apartments were 98 percent leased when the conversion started, with asking rents of $2,300 to $5,100 a month.
The foreclosure does not target the condo units owned by individuals.
The development was hailed as a catalyst for Hollywood’s downtown revitalization when it opened in 2018. The Circ was the first new hotel in the area in nearly four decades.
The project was funded originally with Chinese EB-5 money and $125 million in debt. The developers assembled 24 parcels for the development in 2001.
The Circ hotel was initially tied to Sonder Hospitality, which began winding down operations in November after financial struggles and a failed Marriott partnership. Sonder was connected to eight hotels in Miami. — Rachel Stone
