A&J Realty Miami Files Chapter 11 Over Cosabella Penthouses

A&J Realty Miami LLC, the single-member entity that owns three penthouse units at Cosabella on the Bay in Miami Beach, filed for Chapter 11 bankruptcy protection on October 12. The petition, filed in the Southern District of Florida as Case No. 26-23604 before Judge Peter D. Russin, lists roughly $5.7 million in assets against $10.8 million in liabilities, a gap of about $5.1 million. The sole member of the LLC is Jason M. D’Herin.

Why it matters

Three penthouse units going into Chapter 11 at once signals a concentrated bet on Miami Beach’s luxury waterfront that outran what the entity could carry. The South Florida Business Journal reported on the filing, describing it as part of a run of smaller, single-asset condo-holding LLCs turning to bankruptcy court as carrying costs on high-end units have climbed. A filing of this size at one address also puts Cosabella on the Bay itself in the distress conversation, since a Chapter 11 estate can be a source of units that eventually trade below what an owner-financed sale would fetch. For buyers and lenders watching South Florida luxury condo debt, a single LLC with three units and a $5 million-plus deficit is the kind of position that tends to resurface in a 363 sale or a contested plan.

The numbers

• Filing date: October 12, 2026
• Case number: 26-23604, Bankr. S.D. Fla., before Judge Peter D. Russin
• Assets: approximately $5.7 million
• Liabilities: approximately $10.8 million
• Shortfall: approximately $5.1 million
• Units held: three penthouses at Cosabella on the Bay

What’s next

The docket reviewed for this story does not identify which specific penthouse units are involved or name the creditors behind the $10.8 million in liabilities. Those details, along with any secured lender’s position, typically surface once the debtor files schedules and a creditor matrix, or if a creditor moves for relief from the automatic stay. Court filings make clear what is confirmed: the case number, the filing date, and the asset-liability figures. Unit numbers and creditor names are not yet confirmed and this story will be updated if PACER filings identify them.