Coral Gables-based MG Developer has been hit with a barrage of lawsuits claiming that it has defaulted on millions in loans and preferred equity payments across upcoming projects, some of which its founder, Alirio Torrealba, and his son, Diego Torrealba, personally guaranteed.

Six lawsuits naming affiliates of the 12-year-old company as defendants were filed within eight days starting Aug. 17, according to records filed in the Miami-Dade County Circuit Court.

“Several of the parties referenced in these matters are long-standing investors and business partners with whom we have worked for many years,” a spokesperson for the developer said in a statement. “We value those relationships greatly, take our commitments seriously, and are actively engaged in direct discussions with the relevant parties to address the matters at issue."

The company has a portfolio valued at more than $1.5B and has developed more than 4.3M SF across 14 properties, including 2,700 residential units, in Coral Gables, Miami and Hialeah, according to its website.

Despite its success in past projects, the suits filed concern loans and preferred equity for a handful of upcoming projects MG Developer is developing in North Bay Village, Coral Gables and Doral.

The most recent suit, filed on Monday, came from VFI Capital LLC, an entity managed by family-owned grower and distributor of flowers Galleria Farms, and the trust of founder German Valencia, managed by Roy Valencia.

VFI claims that it loaned $6M to two Torrealba-owned entities last year — $3M to MG NBV for a planned mixed-use condo development in North Bay Village and $3M to The George Partners tied to a 13-unit townhome project in Coral Gables.

Torrealba told VFI the projects needed a cash infusion but, once developed, would yield "significant value that would be far more lucrative than the amounts invested" and personally guaranteed the full $6M, according to the suit.

VFI, which is seeking damages exceeding $6M, claims that MG began breaching the terms of the debt in April when it failed to pay interest and again in May when the developer failed to pay one of the loans that had matured.

VFI alleged that Torrealba took the money from the loans and investments and then sold his interest in the MG NBV and George Partners entities, breaching the terms of the loan.

On Friday, OPB Capital Group Fund 1 LLC, an entity tracing to hotel and food and beverage operator and manager OPB Capital Group, filed suit against MG and Torrealba for failing to make equity payments tied to the 176-key Regency Miami Airport by Sonesta hotel.

MG purchased the hotel from OPB for $36M in 2024. OPB purchased a $2.6M preferred equity stake in the deal that MG was supposed to pay back in three annual installments starting in June 2025.

But MG defaulted on the first payment, leading to OPB issuing a default notice in January, according to the suit. After the developer failed to cure the default, OPB accelerated the remaining amount, making it due immediately. The payments are still outstanding, according to the suit.

OPB also claims that MG landed refinancing for the site without consent in violation of their operating agreement. Miami-based Interaudi Bank provided MG with a $23M loan in February for the hotel.

Representatives for OPB and VFI did not respond to requests for comment.

The two suits pile on top of four other suits that also hit MG, claiming that the developer defaulted on $2.2M in preferred equity and more in loans, The Real Deal reported.

Two entities tracing to Antonio Zeiter, MFD International LLC and Yosse LLC, filed three suits claiming more than $3.4M in overdue debt for two loans on the Sonesta hotel, $517K in hotel-related loans and $1.4M for two loans tied to a residential property in Coral Gables, according to the suit.

Hershoff Lupino & Yagel LLP's Joanne Pereira, who is representing the Zeiter entities, declined to comment.

Area NBV and Area DRL, entities managed by Area Capital's Leonard Kreimer, filed a suit claiming that MG failed to repay $2.2M in preferred equity due in May for projects in North Bay Village, where it plans a 140-unit condo tower with Prosper Group, and Doral, where it plans a 552-unit apartment complex.

The suit claims that Torrealba and his son personally guaranteed the preferred equity redemptions. Meghan Rovner, an Orlofsky Law Firm attorney representing the two entities, declined to comment.

MG told TRD the firm has experienced disruptions in liquidity, but it is working on "resolving these outstanding matters responsibly."

In its statement to Bisnow, the developer's spokesperson said “these matters involve separate investments, agreements, entities and transactions developed over a period of several years.”

The spokesperson highlighted the developer's broader South Florida pipeline, including the $100M construction loan it landed in June for Alhambra Parc in Coral Gables in partnership with Vertical Developments.

“Our focus remains on advancing our projects, completing the capital transactions currently underway, taking our commitments with our investors and business partners seriously," the spokesperson said.