The Real Deal Miami

Proposed Miami Beach hotel site faces foreclosure

May 18, 2012 04:30PM

WSG Development’s proposed extension of Golden Sands Canyon Ranch hotel at 6901 Collins Avenue in Miami Beach is under threat of seizure after a Lehman Brothers affiliate filed a foreclosure lawsuit against the developer, according to the South Florida Business Journal. The original 1951 Golden sands hotel was foreclosed upon in 2009 and the adjacent site, which was bought in 2005 by WSG for $19 million, will most likely suffer the same fate. The property was being prepared for a new 20-story hotel when construction stopped. The lawsuit claims $26 million in outstanding principle loans and an additional $10 million in interest. [SFBJ]