8118 Harding, LLC

In re: 8118 Harding, LLC (Miami Beach), U.S. Bankruptcy Court, Southern District of Florida, Miami Division.

U.S. Century Bank was the first lien holder of a loan secured by a 12-unit multifamily project located in Miami Beach. The lender instituted a suit for foreclosure due to a multitude of issues including failing to make scheduled mortgage payments, significant deferred maintenance and substandard operations and illegally converting the use of the property from multifamily/non-transient to hotel/transient. Due to wide contrasting reports to the Court from both parties, the Court appointed an Examiner to implement a limited scope of work for the purpose of assessing the operation; condition of the property, taking control over the cash collateral; quality of accounting and bookkeeping; and maintenance of records. The Examiner was then required to report the observations to the Court and make a recommendation whether or not a Receiver should be appointed fully removing the borrower from the operation.  The Examiner’s Report submitted to the Court provided a detailed analysis of significant concerns and deficiencies resulting in the recommendation that a receiver be appointed. The Court subsequently appointed a receiver.