Renovated hotel hit the market last year amid foreclosure for over $36M
One of the first South Florida hotels to be on the receiving end of a foreclosure suit during the pandemic was seized by its lender.
An affiliate of BridgeInvest obtained the title to the Variety Hotel in Miami Beach through an auction, more than a year after it filed to foreclose on the 68-key renovated hotel at 1700 Alton Road. The borrower is an entity led by Adam Verner of New York-based Springhouse Partners and Chaim Cahane of Forte Capital Management.
BridgeInvest sued over an unpaid $25 million loan. The borrower ended up owing nearly $32 million, including interest and fees, according to a final judgment dated June 16.
The property was partially a victim of bad timing. Over a period of about three years, Verner and Cahane’s AC 1700 Alton Owner LLC invested millions of dollars into converting the 1923 building into a hotel. It was set to open last year until the pandemic temporarily shut down business and travel. It eventually opened earlier this year.
Attorney Isaac Marcushamer of DGIM Law, who represented the lender, said his client is running the property, and that “all options are on the table” with regards to BridgeInvest’s plans.