A Coral Gables developer building a trio of apartment towers in Hialeah is now fighting off a foreclosure lawsuit over an alleged $31 million default, along with eight separate lawsuits from individual investors seeking more than $21 million. MG Developer, led by Alirio Torrealba, is at the center of the litigation tied to its Metro Parc South project, a planned 347-unit tower that was supposed to be the third phase of the company's Metro Center development along East 24th and 25th streets.
The foreclosure suit was filed on September 22 by Scale Lending, a joint venture between Slate Property Group and The Carlyle Group, according to The Real Deal. The lenders allege MG Developer defaulted on $31.1 million in construction loans and are now seeking that amount plus accrued interest, attorneys' fees and court costs. Scale Lending had provided the $105 million construction financing package behind Metro Parc South, financing that hawkinscre.com had reported MG Developer secured for the planned 10-story, 347-unit building.
According to court documents and Vizzda cited in the same report, lenders allege MG Developer failed to make required reserve-account deposits, allowed construction liens to pile up on the property, and failed to pay 2025 property taxes. The lenders had already sent default notices in January, May and June of this year and entered into a forbearance agreement with MG Developer, but that agreement expired after the defaults continued, per the report.
A Wave of Investor Lawsuits Beyond the Foreclosure
The foreclosure case is just one front in a broader legal fight facing Torrealba and his affiliates. Lenders have filed a wave of lawsuits against him, and eight separate suits are now pending in Miami-Dade Circuit Court alleging breaches of promissory notes, seeking a combined $21.4 million in repayment. The report notes the creditors behind those suits are mostly entities tied to individual investors, who provided loans ranging from $750,000 to $6 million apiece.
Notably, the foreclosure lawsuit itself does not name Baron Property Group or the other two phases of the Metro Center project, keeping the dispute focused specifically on Metro Parc South. MG Developer said it is engaged in good-faith discussions with the vast majority of its lenders and has already reached verbal agreements with some of them, describing the lenders as long-standing investors and business partners. The company said its focus now is formalizing those understandings, resolving remaining matters and putting the legal issues behind it, adding that it takes its obligations very seriously.
Developer Points to North Bay Village Liquidity Crunch
MG Developer cited timing and liquidity challenges related in part to its North Bay Village property as a factor in the current situation, though the company said it was not seeking to shift responsibility to Prosper. MG Developer is selling its interest in that North Bay Village property to an affiliate of Prosper for $20 million; the two companies had previously planned to jointly develop a 30-story, 147-unit condominium tower at 1681 and 1725 North Bay Causeway in 2025. A spokesperson for MG Developer said the firm remains engaged in good-faith negotiations and is working to secure an additional investor to resolve the matter.
How Metro Parc South Fits Into the Bigger Hialeah Project
Metro Parc South traces back to a series of 2024 land deals, when MG Developer paid $16.3 million across three transactions to acquire nearly two acres along East 24th and East 25th streets near Ninth Avenue. The project is the third phase of MG's larger three-phase Hialeah development, following the 10-story, 559-unit Metro Parc and the 10-story Metro Parc North. Reported groundbreaking timelines for Metro Parc South have shifted: an earlier project report from Multifamily Affordable Housing had projected a third-quarter 2024 groundbreaking, while a later announcement from Florida YIMBY set the target for the second quarter of 2025.
MG Developer completed Metro Parc in partnership with Baron Property Group, which had provided a $148 million construction loan for that project back in 2022; Metro Parc topped out in March 2024. Baron Property Group has since bought out Metro Parc North, which has 347 units and recently topped out itself. That project secured $226.5 million in refinancing in July 2026, is now more than 50 percent leased, and is slated for completion in late 2027 — a timeline that lines up closely with an earlier projection that the overall Metro Center development would be fully completed by 2027.
