Chetrit Group is on the hook for more than $82 million after a judge ruled in favor of its lender’s foreclosure of the shuttered Tides South Beach hotel.
The ruling is the latest in the case pitting an affiliate of Safe Harbor Equity against New York-based Chetrit. Safe Harbor Equity sued CG Tides and other Chetrit entities, as well as Meyer Chetrit, in February of last year, alleging that the developer stole $2 million in insurance money without the lender’s knowledge or consent allegedly defaulted on the loan.
Chetrit secured a $45 million loan in 2014 from Ocean Bank. Ocean Bank sold the debt to the Safe Harbor Equity entity in January of last year. The insurance money was to pay for damage to the Tides, a 45-key hotel at 1220 Ocean Drive after Hurricane Irma hit in 2017. Rafael Serrano leads Miami Beach-based Safe Harbor.
Chetrit, which plans to appeal, is on the hook for over $82M in damages
In a ruling on Friday, Miami-Dade Circuit Court Judge Judge Pedro Echarte Jr. stated that the Chetrit affiliate owes $82.1 million as of mid-October, plus attorneys’ fees and additional interest. That amount includes nearly $42 million in unpaid principal debt and nearly $48 million in interest.
If Chetrit does not pay the $82.1 million, the property is scheduled to go to a foreclosure sale on Jan. 17.
Chetrit plans to appeal the foreclosure ruling, according to the firm’s attorney, Dennis Richard of Richard and Richard. Chetrit had financing in place to repay the mortgage before Safe Harbor acquired the loan, Richard wrote via email. He said Chetrit spent $15 million on the project after the hurricane.