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Chetrit Group Dissolves Amid Family Dispute, Keeps Miami River Stake

Court testimony puts the once-billion-dollar portfolio underwater, but Miami-Dade records show a Chetrit entity still on the deed at Flow on the River.

Edited by Ashley Baker · How we report
-$80MCurrent portfolio value, per testimony
$964MPortfolio value, year-end 2022
$95.6MTides Hotel foreclosure judgment
~40%Chetrit's retained Miami River stake

The Chetrit Group is being dissolved amid a family financial dispute, according to court testimony reported by Bisnow, even as an entity carrying the firm’s name still holds title to a South Florida megaproject site. Miami-Dade property records show CG Miami River LLC on the deed at 275 SW 6th Street, the six-acre Miami River parcel where Chetrit retained close to a 40% stake after Adam Neumann’s Flow, Canada Global and Yakir Gabay’s Yellowstone Trust paid $106 million last year for a controlling 60% of the project, now called Flow on the River.

Why it matters

Any developer with a joint venture, contract or pending deal touching a Chetrit entity needs to reassess counterparty risk now. Meyer Chetrit testified that the firm “has run out of funds and stopped doing business,” per Bisnow’s account of the proceedings, and could not identify who was formally winding the company down. Founder Joseph Chetrit has been sidelined by his own health: court filings describe him in a coma following two strokes, and in an April deposition he said his priority had shifted to his health rather than the business. The firm’s South Florida exposure already shows the strain. In March, lender Safe Harbor Equity foreclosed on the shuttered Tides Hotel in Miami Beach, and the property sold at auction for $10,300 against a $95.6 million judgment.

The numbers

Meyer Chetrit valued the portfolio at negative $80 million, down from roughly $964 million at the end of 2022. The Tides Hotel foreclosure judgment totaled $95.6 million, built on a $45 million 2014 mortgage. The Flow-led group’s $106 million purchase bought 60% of the Miami River project, leaving Chetrit with just under 40%. Properties already lost include New York’s Hotel Carter and the former Cabrini Medical Center, plus two New Jersey assets.

What’s next

There is no bankruptcy case number attached to this wind-down, only testimony describing an informal collapse, which leaves lenders, JV partners and contractors with a Chetrit tie little formal process to track. The open question for national counterparties is what happens to the Miami River stake, still on the Miami-Dade deed under Chetrit’s CG entity, as Flow moves to complete construction without a functioning partner on the other side of the table.

Sources

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