V
ärde Partners is taking action against the owner of a Coral Gables office complex, alleging default on a $68.9 million mortgage. The amount owed has risen to $77.4 million since August, including interest and late fees, according to a foreclosure complaint filed in Miami-Dade County Circuit Court. The loan, secured by Columbus Center, is owned by an affiliate of Affinius Capital, led by CEO Len O'Donnell.

    Värde alleges that Affinius defaulted on the note in March by failing to obtain a rate cap agreement, which protects borrowers from unexpected payment increases due to rising interest rates. Värde rejected Affinius' request to restructure the loan and accelerated the maturity date to March 15. Affinius was unable to make a $2.4 million payment and set aside $2.5 million for new accrued interest.

    The loan dates back to 1989, when Affinius obtained a $10.6 million loan to finance its purchase of Columbus Center. The complex consists of two buildings on a 2.5-acre site. Over the next three decades, the loan amount was increased four times, with the most recent increase occurring in 2020.

    Värde and its subsidiary, Trimont, have been involved in several notable foreclosure actions this year. In August, Trimont sued the owner of One Financial Plaza for allegedly defaulting on a $59.2 million mortgage. Trimont acquired the mortgage from Värde in 2021. In April, Trimont acquired the Kayak Miami Beach hotel in South Beach for $13.6 million, paying roughly $260,000 less than the outstanding mortgage owed to Värde.