Capital Funding Group closed a $27.2 million construction loan for the conversion of a partially-completed hotel to a 191-unit assisted living community in Sunrise, Florida. SGSL Fee Owner LLC, based in Coral Gables, Florida, originally acquired the 291-room Sawgrass Grand Hotel and Suites and the 11.6-acre site in 2019 for $15.13 million and had started converting it into a 184-unit assisted living/memory care community, thanks to a $35.8 million bond. However, UMB Bank, which was the trustee for the bond, filed a lawsuit against SGSL Fee Owner over allegations that it missed bond payments and wasn’t paying its project contractors and suppliers.
A judge appointed Travis Grody of Aurora Management Partners as receiver of the property and oversaw the bidding process in September 2022. YMP Real Estate Management emerged as the highest bidder, reportedly paying less than the loan on the property. An estimated $6 to $10 million of construction costs remained to finish the project, which is where CFG comes into the picture. Of the $27.2 million in financing, about $7.4 million will be used to complete construction. YMP will operate the community when opened. This was its second transaction closed with CFG.
