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.