A lender filed a foreclosure lawsuit on a hotel in South Beach, in a possible sign of things to come. A company tied to BridgeInvest sued the owner of the 70-key Variety Hotel, which is yet to open at 1700 Alton Road in Miami Beach. The suit alleges the hotel owner failed to make payments on a $25 million loan since April. BridgeInvest alleges the loan is in default and is seeking the entire principal amount of the loan plus interest.
“We remain open to discussions, but lenders can’t be expected to sit forever and wait,” said Isaac Marcushamer of the Miami-based law firm Mark Migdal & Hayden who represents the lender.
He added, “In normal times, pre-pandemic, if people missed payment, 30 to 45 days later you are looking at a lawsuit being filed.”
Jeff Schneider of Levine Kellogg Lehman Schneider and Grossman, who represents the hotel owner, said he does not believe the borrower is in default.
“We believe that this is a manufactured case,” Schneider said. “We don’t believe it is going to last long, and we are going to vigorously defend it.”