The Real Deal Miami

Sagamore Hotel tries to stop foreclosure auction

April 22, 2010 09:50AM

After being foreclosed when it went into default on a $32 million
mortgage, the Sagamore Hotel is now attempting to stop a court-ordered
auction this week. The hotel has filed a counterclaim against lender
LNR, alleging that the affiliate of Miami-based Lennar induced the
hotel into ceasing payment on the loan in order to restructure it.
According to Dennis Richard, lawyer for the Sagamore, LNR told the
hotel to stop making payments, and that the hotel had always had enough
money to stay current on the loan. [Miami Herald]