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City National Bank Files Foreclosure Against Shoma Group CEO

Miami Real Estate Market

News Summary

City National Bank of Florida has initiated an $8 million foreclosure lawsuit against Masoud Shojaee, the CEO of Shoma Group, over two high-profile properties. The lawsuit stems from Shojaee’s default on an $8 million mortgage, raising concerns about the implications for the Miami real estate market and Shoma Group’s ongoing projects amidst Shojaee’s previous legal troubles.

City National Bank of Florida Takes Legal Action Against Shoma Group CEO

In a surprising twist in the Miami real estate scene, City National Bank of Florida has filed a hefty $8 million foreclosure lawsuit against Masoud Shojaee, the CEO of Shoma Group. This legal battle is generating buzz in the community as it involves two prominent properties that are sure to grab attention.

What’s the Backstory?

The lawsuit, which took shape on January 6, 2024, sees Shojaee standing as the trustee for the Masoud Shojaee 2005 Revocable Trust. Interestingly, the lawsuit is not just targeting him but also includes 60 Edgewater Drive LLC and Erra Trustees, who are acting as trustees of the Nema Land Trust.

To put things in perspective, the properties involved in this foreclosure complaint are nothing short of stunning. First up is a spacious 3,100-square-foot condo (specifically unit 12-E) nestled in the Gables Condominium at 60 Edgewater Drive. Then there’s a lavish 10,500-square-foot mansion, built back in 2003, located at 515 Casuarina Concourse in the exclusive Cocoplum neighborhood. Despite their grandeur, it’s noteworthy that neither of these properties qualifies as Shojaee’s homestead.

The Loan and Default

Now, let’s talk money. Back in August 2022, City National Bank happily provided Shojaee with an $8 million mortgage. This loan came with a fixed interest rate of 5.4%, a pretty standard deal in the world of high-stakes real estate. However, it seems things took a turn for the worse when the lawsuit revealed that Shojaee defaulted on this loan, failing to repay it by its maturity date of August 19, 2024.

City National Bank is not simply demanding repayment; they’re looking to enforce their rights based on the guarantee associated with Shojaee’s trust, along with a push for foreclosure on both properties. This assertive legal stance indicates that the bank is determined to recover their investment, making this a case to watch closely.

More on Shojaee’s Legal Troubles

It’s important to note that this isn’t the only legal issue swirling around Shojaee’s head. Just last month, in December 2023, a different lawsuit involving a $10.5 million loan against him and his wife, Stephanie Shojaee, was voluntarily dismissed by BigEye Financial. This brings a sigh of relief, but the current fallout from the foreclosure lawsuit is undeniably more significant given the staggering amount at stake.

Shoma Group’s Ongoing Projects

Despite these turbulent times in court, Shoma Group isn’t slowing down. The team continues to stay busy with various projects throughout Miami-Dade County. Earlier this year, they broke ground on an exciting condo/retail project that includes a Publix in North Bay Village. On top of that, there’s a proposal floating around for a 31-story tower in Kendall under the state’s Live Local Act.

In summary, as the case unfolds, many are left wondering how this will all affect both Shojaee personally and the ongoing operations of Shoma Group. In a city that’s constantly evolving and buzzing with real estate activity, it’s certainly a story to keep an eye on as it develops. Miami-Dade residents and real estate enthusiasts alike may just want to buckle up for what might be an interesting ride ahead.