HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel

HFZ’s Ziel Feldman. (Getty, Shore Club)
HFZ’s Ziel Feldman. (Getty, Shore Club) via www.therealdeal.com

Legal and financial troubles mount at prime oceanfront property

A partner in HFZ Capital Partners’ Shore Club in South Beach filed a lawsuit against the hotel’s owners, as HFZ’s financial and legal troubles continue to mount.

A company tied to The Clark Estates, the family of the late newspaper publisher and businessman Stephen Carlton Clark, is suing the Shore Club’s owners to block the sale of the hotel without the approval of The Clark Estates entity.

The lawsuit follows a February notice from the Florida Department of Revenue, which issued a warrant for nearly $441,000 in unpaid sales and use taxes.

The hotel, a prime waterfront property at 1901 Collins Avenue in Miami Beach, has fallen into disrepair and has been shuttered throughout the pandemic.

SC Philips Clark LLC filed the lawsuit last week in Miami-Dade Circuit Court against Shore Club Managing Member LLC, Shore Club JV LLC, and Shore Club Property Owner LLC. The lawsuit states that the Clark Estates entity owns 50 percent of Shore Club JV LLC, which in turn owns the hotel through Shore Club Property Owner.

HFZ, led by Ziel Feldman, did not immediately respond to requests for comment.

In the complaint, SC Philips Clark references The Real Deal’s previous reporting, including an article published in December that revealed that New York-based HFZ had the oceanfront property on the market for sale with the brokerage Newmark.

The HFZ entity paid more than $175 million for the hotel in 2013. Management company Sbe had been operating the hotel since it acquired Morgans Hotel Group in 2016.

By Katherine Kallergis for www.therealdeal.com
Read the full story: www.therealdeal.com

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