Miami-based City National Bank of Florida has agreed to forgive $10 million in debt on Davie’s 595 Corporate Park of Commerce as part of a mortgage modification deal with the developers.
The 42-acre project had been hit with a foreclosure lawsuit in January, which developers Robert Lechter, a principal with Hollywood-based REMS Group, and J. Brett Houston said was part of the loan modification process for their $32 million mortgage.
Under the deal, the bank won’t try to seize the property and Lechter’s group put up an additional $6 million in capital, part of which went toward paying down the debt. If the developers don’t go into default again over the next three years, the bank will allow the $10 million principal reduction.
The property includes 216,000 square feet of office and industrial space, which was completed as part of its first phase. Another 300,000 square feet have been approved for future construction.