Owners of the Aloft Miami Brickell hotel filed for bankruptcy due to the effects of the COVID-19 pandemic, the South Florida Business Journal reported. Mary Brickell Village Hotel LLC, a subsidiary of Miami-based real estate developer and hotelier HES Group, filed for chapter 11 bankruptcy protection on Wednesday in the Southern District of Florida. The declaration comes after DF VII Reit Holdings LLC, an affiliate of New York-based Torchlight Investors, filed a foreclosure complaint agains the company and its guarantors over missed mortgage payments starting in April 2020, according to court documents. Court documents show the hotel's loan was made for $17 million in 2014 and sold on the commercial mortgage-backed securities (CMBS) market. According to CMBS data from Bloomberg, Torchlight Loan Services was appointed special servicer 60 days after the loan went into default.
