Forman Capital has filed a foreclosure lawsuit against the owners of a planned condo-hotel site in Miami’s Art & Entertainment District, citing an alleged default on an $8.3 million loan. The suit, filed on September 5 in Miami-Dade Circuit Court, targets two entities that control the half-acre property at 1317-1352 North Miami Avenue.
The developer Dan Kodsi was initially involved with the project but is no longer participating, according to both Kodsi and borrowers’ attorney Joseph Pardo. The planned development included a 30-story condo-hotel.
Forman Capital, based in Delray Beach and led by Brett Forman and Ben Jacobson, alleges that the loan matured on August 16 without repayment. The firm is also seeking about $220,000 in default interest and fees. A spokesperson for Forman Capital declined to comment on the ongoing litigation.
Pardo said his clients are working toward a 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 ownership entities bought the assemblage for $10.7 million in 2022 and are currently collaborating with city officials to finalize design plans and determine permitted density for the project, Pardo stated.
Records show Forman Capital issued the bridge loan last year as refinancing for an earlier mortgage.
Previously, Kodsi partnered with Rafael Pecchio on plans for a 200-unit apartment building before Pecchio exited and Kodsi shifted focus to developing a condo-hotel with 360 units that would include short-term rentals.
Separately, Kodsi faces another foreclosure case related to his Legacy Hotel & Residences at Miami Worldcenter. In that matter, Judge Spencer Eig recently gave Kodsi’s entity approximately two months to repay over $35 million owed to Monarch Alternative Capital after Monarch filed its own foreclosure complaint regarding the partially built tower at 942 Northeast First Avenue. Kodsi’s entity has countersued Monarch.
Kodsi and his attorney confirmed he is no longer involved in the Art & Entertainment District project.
