R
aoul Thomas's business empire is facing significant challenges this year. He may lose control of a Coral Gables office building due to financial difficulties after lender Cerberus Capital Management filed a Uniform Commercial Code foreclosure against his company, CGI Merchant Group, over a $48.7 million loan. The auction for the 15-story building at 550 Biltmore Way is scheduled for December 19.

    Thomas's troubles are part of a broader trend affecting investors in South Florida due to high interest rates and rising insurance costs. Despite these challenges, Thomas remains determined to recover from his financial struggles. In a recent interview, he mentioned working on recapitalizing loans and securing new equity partners to regain control of properties lost through foreclosure.

    CGI Merchant Group is trying to resolve the issue with Cerberus Capital Management regarding the Coral Gables office building. The company paid $54.4 million for the property in 2019 but borrowed $46.5 million from MSD Partners, which was later refinanced by Cerberus at a higher amount of $48.7 million.

    The building is currently 90% occupied, but it will lose UBS as a tenant due to the Swiss bank's decision to lease space at another project in Coral Gables. Thomas's company has faced multiple setbacks this year, including losing control of two hotels and facing an auction for another property in Miami Beach.