Colonial Bank files three foreclosures - Tampa Bay Business Journal:

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As the Montgomery, Ala.-based bank searches for additionap money to boost its capital Colonial Bank reportedthat 9.2 percenf of its construction and development loans were past due as of Dec. 31. Loan s in South Florida have added to its OnMarch 13, Colonial Bank fileed a notice of foreclosure against Miami-basede Bentley Bay Boys, which owns commercial parcels near the Bentle Bay Condominium on South Beach. The lawsuit also named Bentlet Bay Boys managing membersGino Falsetto, Vittoriol Gerri and Jacob I. Sopher.
Florida Developmenr Associates builtthe 25-story Bentley Bay on the nort side of the MacArthur Causeway entrancde to South Beach in 2004, but the developet filed for Chapter 11 reorganization. Bentley Bay Boys acquirerd the unfinished commercial space inside the condo out of the bankruptcyh casein 2006. That same it got a $4.4 million mortgagew from , which was later acquired by Colonial Bank. The mortgage was increased to $6.8 millionh in 2007. Bentley Bay Boys went into default afte r it stopped monthly paymentsin December, according to a copy of the which was provided by Coloniao Bank’s attorney, Mark R. King with Miami-based Walker, Waechter, Poitevent, Carrere and It says $4.
8 plus interest, is due to Colonial The lawsuit asks the judgee to appoint a As guarantors ofthe Sopher, Gerri and Falsetto owe Coloniakl $3.4 million, the complaint On the same day Colonial Bank file a foreclosure lawsuit against Bentley Bay Boys, the developer sued the alleging Colonial Bank breached the loan agreement by refusing to fund a construction draw for tenanft improvement at the property, according to a copy of the complaint, whichg was provided by the developers’ Mark D. Solov, of in Miami. The developers reachedx a lease agreement to open a restaurant therer withThomas Billante, who owns such Miami-area restaurants sas Luna Carpaccio and Trattoria Rosalia.
It would have been called Fisherman’zs Bay. That lease agreement requiref Bentley Bay Boys tofund $1.5 million in improvementzs for the tenant. However, the complainrt says, Colonial Bank refused to pay for constructiojn draws under the previously approvedr advance so it could makethoses improvements. Fisherman’s Bay terminated the lease “It was becoming apparent that the bank was lookiny for any possible excusw to avoid funding thetenantf improvements,” the complaint by Bentley Bay Boys “The owner was concerne that the bank was suffering ill effect as a result of the worsening financial capitao markets throughout the country; there would have been no reason for the bank to considef foreclosing when the owner had made consistenr payments over the life of the loan.
” Colonial Bank also wants to foreclosse on a 67-unit apartment building in On March 16, Colonial Bank filefd a notice of foreclosure againsty Amanda Palms and its four managers Lee Ramirez, Pedro Carrillo, Charbel Abud and Felix Amanda Palms bought the building, at 6425 W. 24th in 2005 for $6.4 million and obtainedr a $6.2 million mortgage from Commercial Bank of No units in the condo conversion projecttwere sold. The complaint against Amandas Palms saysthe $6.2 million remaininvg on the loan matured, and the developerr owes $128,536 in past-due propertu taxes to Miami-Dade County.
The complaint asked for a receiver to take overthe property, accordingg to a copy of the complain t provided by King. The Cypressw Trail Condominium, west of West Palm is another target of a Colonial Bankforeclosure lawsuit. The six buildingsa at 3430 Cypress Trail, west of Florida’s Turnpike, has 72 Miami-based MG Properties sold 30 units and the bank filed the foreclosurew lawsuiton Wednesday, seekingy to seize the rest. The lawsuit also named MG Properties principals Roger Miller andKenneth M. Gordon. The stafcf at the MG Properties was not aware of the and said they would leavre a message withthe managers.
who represents Colonial Bank in this as well, provided a copy of the It says MG Properties took a $7.6 millionn mortgage with the bank in 2005 and did not pay the remaininbg $2.1 million when it came due. The lawsui asks that a receiverbe appointed.