Hodges Ward Elliott (“HWE”) has been exclusively retained by Deutsche Bank AG, New York Branch (the “Secured Party”), to offer for sale at public auction one hundred percent (100%) of the partnership interests (collectively, the “Partnership Interests”) held by CGI 640 OCEAN MANAGEMENT GP, LLC, a Delaware limited liability company, and CGI 640 OCEAN MANAGEMENT HOLDCO, LP, a Delaware limited partnership, (collectively the “Pledgors”) which collectively hold 100% ownership interest in CGI 640 OCEAN MANAGEMENT, LP (“Borrower”), who owns and operates the real property located at 620, 626, 640, and 650 Ocean Drive, Miami Beach, Florida, commonly referred to as The Gabriel Miami South Beach, Curio Collection by Hilton (the “Hotel” or “Property”).
The Secured Party is the holder of a first lien mortgage loan (the “Loan” or “Mortgage Loan”), with an original principal balance of the $71,105,000, which Loan is secured by Borrower’s fee simple interest in the Property. In addition, to guaranty the Mortgage Loan, Secured Party was provided with a pledge of the Partnership Interests under the Uniform Commercial Code (UCC) pursuant to a Pledge and Security Agreement dated August 3, 2021, between Secured Party and Pledgors (the “Pledge and Security Agreement”). The Mortgage Loan matured on March 15, 2023, and the mortgage Loan remains unpaid and outstanding.
Prospective investors are invited to bid in the upcoming UCC foreclosure auction scheduled on July 17, 2024 at 10am Eastern Standard Time at the law office of Gibson, Dunn & Crutcher LLP located at 200 Park Avenue, New York, NY 10166 or via web-based video conferencing/telephonic conferencing program.
UCC AUCTION PROCESS
Prospective investors are welcome to participate in the UCC Auction at the Public Auction date specified in the timeline below. The Secured Party reserves the right to require a showing of financial ability from prospective bidders prior to the date of the sale.
| Auction Date | July 17, 2024 |
| Time | 10:00 AM EST |
| Auction Location | Law office of Gibson, Dunn & Crutcher LLP , 200 Park Avenue, New York, NY 10166 |
Data Room
An online data room is available to prospective bidders, subject to execution of a confidentiality agreement, and includes all relevant Loan and Property level documents pertaining to the auction. The data room can be accessed via HWE through a third-party secure site (ShareFile). All updates will be posted directly to the secure website. Please contact loansales@hodgeswardelliott.com should you experience any problems accessing the site or downloading documents.
UCC Foreclosure Registration / Auction
Prospective investors are welcome to register to bid at the UCC foreclosure auction scheduled for July 17, 2024. Investors have the ability to attend the UCC auction at the law office of Gibson, Dunn & Crutcher LLP located at 200 Park Avenue, New York, NY 10166 or via web-based video conferencing and/or telephonic conferencing program. All parties desiring to qualify as a bidder at the Sale are required to deliver by July 16, 2024 at 4:00 P.M. Eastern Time (1) a deposit of $100,000 and (2) proof of financial ability to consummate the Sale. A prevailing bidder must pay the balance of the purchase price for any successful bid to Secured Party by 4:00 P.M. Eastern Time on the second (2nd) business day after the acceptance of any such bid.
Bid Components & Cost / Terms
Upon Secured Party awarding the bid, the prevailing bidder must pay the balance of the purchase price for any successful bid to Secured Party by 4:00 P.M. Eastern Time on the second (2nd) business day after the acceptance of any such bid. Each prospective bidder will be required to pay all of its own costs and expenses incurred in connection with its evaluation of the Property and the closing of the contemplated transaction including, but not limited to, its counsel fees and desired third-party work.