The owner of a 38-acre Royal Palm Beach mixed-use development site filed for Chapter 11 bankruptcy the night before its looming foreclosure auction.
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Main Street at Tuttle Royale LLC, managed by Tuttle Land Investments CEO Brian Tuttle, filed the petition to restructure its debt and reorganization under the protection of the U.S. Bankruptcy Court in West Palm Beach, the South Florida Business Journal reported.
The ownership entity listed $10M to $50M in assets and $50M to $100M in liabilities.
Tuttle was wrestling with a foreclosure lawsuit filed by Tuttle Royal Lender LLC, alleging missed payments on three mortgages that totaled $38M last year. The loan, which Fort Lauderdale-based Fuse Group originated in 2021, was extended twice before it was sold to Tuttle Royal Lender LLC in June 2024.
In July, the court sided with the lender and issued a $47M judgment, scheduling the courthouse sale for Sept. 24 — though Tuttle was still optimistic and expected to repay the judgment before then, he told the SFBJ in August.
Tuttle, who didn't respond to Bisnow’s request for comment, told The Real Deal the bankruptcy filing was a direct response to the impending foreclosure auction.
The lender's attorney, Josh Rubens of Kluger, Kaplan, Silverman, Katzen and Levine, declined to comment.
The planned mixed-use development, dubbed Mainstreet at Tuttle, is part of the 200-acre Tuttle Royale development on Southern Boulevard near State Road 7. Tuttle plans 400K SF of retail, 401 apartments, a 125-unit hotel, 83K SF of medical office and 3,435 parking spaces across three garages.
Tuttle hasn't yet begun construction on the project and told Bisnow in an interview last year that rising interest and insurance rates made it difficult to refinance the debt.
Surrounding projects within the 200-acre master plan are already complete, like The Lynd Group’s The Villas at Tuttle Royale, which delivered 55 townhomes across 26 buildings, and Related Group’s 392-apartment Pointe at Southern development.
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