Forman Capital is seeking to foreclose on a development site slated for a condo-hotel in Miami’s Art & Entertainment District over an alleged $8.3 million loan default.
The project was being managed by developer Dan Kodsi, but he and the borrowers’ attorney Joseph Pardo told The Real Deal he is no longer involved.
On Sept. 5, an affiliate of Delray Beach-based Forman Capital, led by Brett Forman and Ben Jacobson, sued two entities that own a 0.5-acre assemblage at 1317-1352 North Miami Avenue where the Miami-based developer planned a 30-story condo-hotel.
The foreclosure complaint, filed in Miami-Dade Circuit Court, alleges that the entities defaulted on an $8.3 million bridge loan that matured on Aug. 16. Forman Capital is also seeking default interest and fees totaling roughly $220,000.
Through a spokesperson, Forman Capital declined to comment. Pardo, the attorney for the borrowers, said his clients are seeking a quick resolution.
“This project is transitioning from a land loan to a construction loan, and this is a timing issue,” Pardo said. “We are in active negotiations with the lender to resolve this, and we fully expect that it will be resolved promptly.”
The entities, which paid a combined $10.7 million for the assemblage in 2022, are working with the city of Miami to finalize the project’s design and the permitted density, Pardo said.
Last year, Forman Capital provided the loan to refinance a previous mortgage, records show.
Kodsi and former partner Rafael Pecchio previously planned a 200-unit apartment building. But Peccio bowed out, and Kodsi changed course last year with new plans for a condo-hotel with 360 units, including some short-term rentals.
Kodsi is fighting a separate foreclosure case involving his Legacy Hotel & Residences project at Miami Worldcenter that is currently under construction. Recently, Miami-Dade Circuit Court Judge Spencer Eig gave the Kodsi entity developing the Miami Worldcenter project roughly two months to pay back more than $35 million to another lender, New York-based Monarch Alternative Capital.In July, Monarch filed a foreclosure complaint tied to the partially built 50-story mixed-use condo and hotel tower at 942 Northeast First Avenue in downtown Miami. Kodsi’ entity countersued Monarch.
This story has been updated to reflect that Dan Kodsi is no longer involved in the project, he and his attorney said.