Coral Gables-based MG Developer faces at least seven lawsuits alleging it defaulted on millions in loans and investment payments.
The firm built its reputation replacing rental apartment buildings with luxury townhomes across its Biltmore Square community near Valencia Avenue. Now, lawsuits filed in Miami-Dade County Circuit Court threaten to cloud that track record.
Six suits naming MG Developer affiliates as defendants were filed within eight days starting Aug. 17, Bisnow reported. By Sept. 3, the South Florida Business Journal reported the count had grown to seven.
Lawsuits Target Multiple Projects and Investors
At least one suit targets The George, MG Developer's 13-unit townhome project at 717 Valencia Ave. VFI Capital LLC claims it loaned $3 million to The George Partners, a Torrealba-owned entity. MG began missing interest payments in April and failed to repay a matured loan in May, according to Bisnow.
Two entities linked to investor Antonio Zeiter filed three suits claiming more than $3.4 million in overdue debt. That total includes $1.4 million tied to a Coral Gables residential property. A separate suit from entities managed by Area Capital's Leonard Kreimer alleges MG failed to repay $2.2 million in preferred equity due in May for projects in North Bay Village and Doral.
MG Developer founder and CEO Alirio Torrealba personally guaranteed some of the loans, according to court records cited by Bisnow.
Company Says It's in Talks With Creditors
An MG Developer spokesperson told Bisnow the company takes its commitments seriously and is in direct discussions with the parties involved. The company separately told The Real Deal it has experienced "disruptions in liquidity" but is working on "resolving these outstanding matters responsibly."
The spokesperson also pointed to a $100 million construction loan MG landed in June for Alhambra Parc in Coral Gables, a project with Vertical Developments.
Firm's Portfolio Spans Millions of Square Feet
Torrealba founded MG Developer in 2014. The company says its portfolio spans more than 4.3 million square feet across 14 properties, including 2,700 residential units in Coral Gables, Miami and Hialeah.
Its Biltmore Square community replaced existing properties with five phases of luxury housing. Those phases are Biltmore Park, a 32-unit condominium; Althea Row, five townhomes; Beatrice Row, nine townhomes; Biltmore Row, 10 townhomes; and The George. Residences at The George start at $5.9 million, with completion expected by mid-2027, according to Yield Pro.
Nearby Property Also Faces Redevelopment Proposal
On the same street, a separate developer proposed in February demolishing two apartment buildings at 406 and 414 Valencia Ave. to build five townhomes. That plan would cut density from 12 units to five, according to the Gables Gazette.
No hearing dates for the MG Developer lawsuits have been announced.
