A joint venture between Slate Property Group and The Carlyle Group filed a foreclosure lawsuit on September 22 against the developer MG Developer for an alleged default of 31.1 million dollars related to the Metro Parc South project, a rental tower of 347 apartments currently under construction in Hialeah, the most Cuban city in the United States.
The lawsuit was filed by Scale Lending, the real estate loan vehicle of both firms, and is part of a $105 million construction financing package that MG Developer, based in Coral Gables and led by Alirio Torrealba, had secured in April 2025.
According to court documents cited by The Real Deal, the lenders allege that the developer failed to make the required deposits into reserve accounts, allowed construction liens to accumulate on the property, and did not pay the property taxes for 2025.
Scale Lending had sent default notices in January, May, and June of this year. Following those notices, the parties signed a forbearance agreement that subsequently expired without the situation being resolved, prompting the lenders to initiate legal action.
The lawsuit seeks $31.1 million plus accrued interest, attorney fees, and court costs.
Metro Parc South is the third phase of a larger development by MG Developer in Hialeah: a 10-story tower located near East 24th and 25th Streets and Ninth Avenue, next to the Metrorail. The land was acquired in 2024 for $16.3 million in three transactions covering nearly two acres.
The foreclosure is not the only legal challenge the company is facing. Since the summer, eight additional lawsuits have been filed in the Miami-Dade Circuit Court by creditors alleging default on promissory notes and collectively claiming $21.4 million.
The plaintiffs are primarily entities associated with individual investors who lent between $750,000 and six million each, without any mortgage collateral on the property.
That distinction is relevant: if the project goes into foreclosure, unsecured creditors are placed in a subordinate position to recover their money, which exposes small investors to significant losses.
MG Developer acknowledged the situation but did not admit liability. A spokesperson for the company stated to The Real Deal: "We fully recognize that the lender has a specific legal course in these matters."
That said, we remain actively committed to good faith negotiations, including the search for an additional investor, to bring this matter to a prompt resolution.
In a broader statement, the firm claimed to have reached verbal agreements with some of its creditors and attributed the issues to "liquidity and timing challenges" partly related to its property in North Bay Village, where it is selling its stake to an affiliate of Prosper for 20 million dollars.
The lawsuit does not affect the other two phases of the Hialeah development. Metro Parc North, consisting of 347 units, was purchased by Baron Property Group, secured refinancing of $226.5 million in July, and is over 50% leased, with delivery expected by the end of 2027.
The case arrives at a delicate moment for the rental market in Miami-Dade, where rents have decreased in the past year: the median in Hialeah is now $2,412 per month, which is 3.52% lower than a year ago.
Nevertheless, the affordable housing crisis in the city remains severe: the average rental burden accounts for 67.9% of residents' monthly income, and the local Housing Authority opened a seven-day application window in July for the Section 8 housing voucher waiting list, reflecting the high demand.
MG Developer insisted that its priority is to "formalize the agreements reached, resolve outstanding issues, and responsibly and constructively leave behind these legal problems," although for the moment the foreclosure lawsuit is still proceeding through the courts.
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