Shore Club foreclosure suit dismissed

U.S. District Judge Cecilia Altonaga has dismissed the foreclosure
lawsuit against the Shore Club hotel, on the grounds that federal court
was not the proper venue for the action. In March, representatives of a
CMBS fund serviced by LNR Partners filed the $126 million suit against
Philips South Beach, which owns the hotel at 19th and Collins Avenue in
Miami Beach. LNR and the CMBS fund are deciding whether to file a
foreclosure action in state court in the 11th Judicial Circuit in Miami.
“We intend to vigorously pursue the foreclose of the Shore Club,” said
Victor Diaz, attorney for LNR and the fund. “There are no settlement
discussions between the parties.” The hotel has been among the largest
delinquent loans in South Florida since its first went into default
on its $109 million loan. [SFBJ]