Litigation and Restructuring Lawyers

Miami-Dade Condo Building Tied to Airline Faces $3M Foreclosure

By: Brian Bandell South Florida Business Journal

Centurion Air Cargo and an affilied company were hit with a $2.85 million foreclosure lawsuit over a condominium building in Hialeah.

The news comes as the Miami-based cargo airline attempts to resume its operations.

SHEDDF2-AE LLC, an affiliate of Miami Beach-based Safe Harbor Equity, filed a foreclosure lawsuit April 19 against Centurion Air Cargo, Aires Properties, Lynx Global Corp. and Alfonso C. Rey. It targets the 16-unit Toledo Isles at Palm Avenue condo building at 10 W. 10th St. and 932 Palm Ave.

In 2007, Doral-based U.S. Century Bank originally granted the $5.44 million mortgage to Centurion Air Cargo and Aires Properties, which own the condos. Lynx Global and Rey, the founder and CEO of the air cargo carrier, were guarantors of the loan.

U.S. Century Bank sold the mortgage to SHEDDF2-AE for $2.5 million in March, according to county records.

According to the complaint, Centurion Air Cargo and Aires Properties defaulted on the mortgage by missing the Dec. 29, 2017, payment and failing to pay 2017 property taxes on the condos. It allegedly owes $2.85 million in principal, plus interest.

“The lender sued to enforce its rights, but is open to resolving the matter,” said Miami attorney Christopher B. Spuches, who represents the plaintiff.

The website and phone number for Centurion Air Cargo were not working on Thursday. According to an April 2 story by CH-Aviation, Centurion Air Cargo was grounded by the U.S. Department of Transportation because it could not comply with the department’s financial fitness criteria by March 31, but the airline asked the regulator for more time to comply because it’s speaking to investors.

Aires Properties acquired the 16 condos for $3.25 million in 2006. The building is operated as a rental.

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