Miami Beach hotel heads to foreclosure auction

Variety Hotel
Variety Hotel Hotel (iStock) via www.therealdeal.com

Borrower owes nearly $32M, including legal fees and interest, judge rules

The owners of the Variety Hotel are almost out of options.

The property, at 1700 Alton Road, is heading to a foreclosure auction on July 14, nearly a year after a company tied to BridgeInvest filed a foreclosure lawsuit against AC 1700 Alton Owner LLC over an allegedly unpaid $25 million loan. Adam Verner of New York-based Springhouse Partners and Chaim Cahane of Forte Capital Management control the borrowing entity.

The auction was originally scheduled for June 7 but was delayed on Monday, according to a spokesperson for the lender’s lawyer.

The borrower now owes nearly $32 million, including legal fees and interest, to the BridgeInvest affiliate, BI 44 LLC, according to Miami-Dade Circuit Court Judge Michael Hanzman’s final judgment.

The 68-key hotel was renovated and converted into a hotel. The property, built-in 1923, opened recently, according to hotels.com.

The original lawsuit filed in June 2020 alleged the developer hadn’t made payments since April, just weeks after hotels were ordered shut in Miami-Dade County as a result of Covid-19.

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

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