A construction loan tied to a mixed-use senior living project in Miami's Aventura neighborhood has been sold after its opening has been delayed for more than a year.

California-based Dornin Investment Group purchased the $66M nonperforming loan tied to 1212 Aventura, a 10-story senior living tower at 21290 Biscayne Blvd. that Aventura-based Rieber Developments started construction on in 2020.

The loan was sold by an unnamed debt fund, according to a release from BWE, which represented both the buyer and the seller of the debt.

“When we began this transaction, the note's seller made it clear they wanted to move quickly, and the solution we devised allowed the original lender to be paid in full for the outstanding principal balance while ensuring that the note found its way to a new owner with experience resolving nonperforming loans like Dornin,” BWE Senior Vice President Mike Guterman said.

Rieber Developments secured $83.8M in construction financing for the project in 2021, The Real Deal reported at the time, including a $63.5M senior construction loan from BridgeInvest and a $20.3M mezzanine loan from an overseas lender.

Representatives for BridgeInvest and Rieber didn't immediately respond to Bisnow’s request for comment.

Dornin financed the loan purchase with a $41M note-on-note bridge loan, $30.8M of which came from Sunrise Realty Trust, an affiliate of TCG Real Estate, and the remaining $10.3M from TCG itself. The loan will be used for the full repayment of the senior mortgage on the property, according to the release.

The 1212 Aventura development, designed by Arquitectonica, includes 163 units across seven floors, 22K SF of ground-floor retail and two floors of parking. The project also includes a medical office building with 39 medical offices and more than 6K SF of ground-floor retail, according to the release.

Construction was originally slated for completion in 2022, a delay that could explain why the loan was categorized as nonperforming. It received a temporary certificate of occupancy late last year, according to a JLL marketing brochure for the building.

That listing offered the property for sale “on an accelerated timeline” with offers due Jan. 23.

Nonperforming loan sales, especially at par, are becoming more common as lenders look to recover their investment without having to work out problem loans or take over the associated properties, Guterman told Bisnow in a phone call.

“When the lender doesn't have to take a loss, it's a lot easier to make a decision to sell the loan,” Guterman said. “It's a situation where there are loan losses that make it difficult for them to make a decision and for a transaction to take place.”