A $38 million foreclosure complaint could knock out Don King’s plan to sell 52 acres in Mangonia Park.
On Wednesday, an affiliate of Taylor Made Lending, a Pompano Beach-based hard money lender, sued King and three of his entities in Palm Beach County Circuit Court alleging he defaulted on three separate loans obtained between 2023 and last year, court records show. Taylor Made is the special servicer, representing a consortium of investors that own the mortgages, including Miami-based Winston Capital Management.
King personally guaranteed repayment of the loans, which are secured by the former Palm Beach Jai Alai fronton at 1415 45th Street that the 93-year-old legendary boxing promoter bought for $6.3 million in 1999, the complaint states.
Recently, King put the property on the market without an asking price, but he’s looking for initial offers in the $100-plus million range.
King and Taylor Made’s attorney, Scott Hawkins, did not respond to requests for comment.
In 2023, King took out the first loan for $22.3 million, agreeing to a 13.9 percent annual interest rate and monthly interest-only payments of $260,000, according to the mortgage attached to the complaint. A year later, King took out the second loan for $9 million at an 18.5 percent annual interest rate, and the third loan for $800,000 with a 2 percent annual interest rate, according to the two mortgages, which are also included in the lawsuit.
King allegedly stopped making the monthly $138,750 interest-only payments on the $9 million loan in September and failed to repay the $800,000 loan when it matured in December, default letters attached to the complaint state.
In addition to $32.1 million in principal, King owes another $5.9 million in default interest and fees, the lawsuit alleges. The foreclosure complaint further complicates a potential sale of the 52 acres, where the “current zoning is limited,” according to an offering memorandum.
The property is approved for primarily office, governmental, medical outpatient, educational and manufacturing uses, but 25 percent of the site could be developed into some retail such as pharmacies, gift shops, restaurants and gyms, the offering states.
King last attempted to sell the Mangonia Park site a decade ago, but a deal with West Palm Beach-based FRI Investors fell apart.
The boxing icon’s real estate woes extend to Deerfield Beach where a warehouse King owns is also facing foreclosure. In a pending lawsuit filed in March, an affiliate of Miami-based Blueprint Capital Partners accuses King of defaulting on a $5.3 million loan.
