In 2017, the Tides Hotel in South Beach, Florida began renovations on the historic 45-room hotel and surrounding property at 1220 Ocean Drive and multiple addresses on Collins Ave.
The renovations sought to expand the hotel to 145 rooms by connecting it to the newer buildings on Collins Ave. The building plans for the 1936 art deco-style hotel also included a new outdoor swimming pool.
Construction Delays & Financing
Hurricane Irma struck later in 2017, causing the property to incur significant damage and delaying the construction process. The loan for the project, which was initially taken out for $45M in 2014, was extended multiple times to accommodate the borrowers.
Safe Harbor Equity is the loan’s servicer and the plaintiff of the foreclosure lawsuit; suggesting that the move was intended to protect their investment after having taken out a $34M loan themselves to secure the note for the Tides Hotel renovation.
A Safe Harbor Equity spokesperson noted that the foreclosure suit is not intended to isolate the borrowers.
“It is always our preference to restructure the debt and work with the borrower to satisfy their debt and keep them operational,” they said to a reporter for the South Florida Business Journal. Depending on the response from Tides Hotel management, the lawsuit may or may not proceed in court.
Pursuing or Defending Against Foreclosure
Whether you’re a purchaser or a bank, it’s important to have legal representation during the foreclosure process. Foreclosure is never ideal and can be costly for both the property buyer and the lender.
Various circumstances can make your case easier or more difficult, making it critical that you are able to understand your legal rights and available options so you can make decisions that are in your own best interests. Our ultimate goal is to help you protect your property and financial assets regardless of the situation at hand.
Contact Feinstein Real Estate Litigation and Business Law Today
At Feinstein Real Estate Litigation and Business Law, we understand the numerous challenges presented by foreclosure, particularly when the property is high-value. We can provide you with experienced legal representation during settlement negotiations or litigation in a Palm Beach courthouse. Let us help you pursue or defend your assets against foreclosure.
Contact us today for a consultation to discuss the details of your case with an experienced real estate litigation lawyer by calling 954-767-9662 (Fort Lauderdale), 561-981-6212 (Boca Raton), or 305-728-5267 (Miami).