Forman Capital has initiated foreclosure proceedings on a planned condo-hotel development site in Miami’s Art & Entertainment District, citing an alleged default on an $8.3 million loan.
The legal action, filed September 5 in Miami-Dade Circuit Court, targets two entities that own the 0.5-acre property at 1317-1352 North Miami Avenue. The site was previously managed by developer Dan Kodsi, though both Kodsi and borrowers’ attorney Joseph Pardo told The Real Deal that Kodsi is no longer involved with the project.
Forman Capital, based in Delray Beach and led by Brett Forman and Ben Jacobson, alleges that the property owners failed to repay the bridge loan when it matured on August 16. The lender is also seeking approximately $220,000 in default interest and fees.
A spokesperson for Forman Capital declined to comment on the case. Attorney Joseph Pardo stated 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 borrower entities acquired the assemblage for $10.7 million in 2022 and are currently coordinating with city officials to finalize design details and permitted density for the project, according to Pardo.
Records indicate that Forman Capital provided the current financing last year to refinance an earlier mortgage on the site.
Initially, Dan Kodsi and former partner Rafael Pecchio had planned a 200-unit apartment building at the location. After Pecchio’s departure, Kodsi shifted plans last year toward developing a 360-unit condo-hotel that would include short-term rentals.
Separately, Kodsi is contesting another foreclosure involving his Legacy Hotel & Residences project at Miami Worldcenter. In July, Monarch Alternative Capital filed a foreclosure complaint related to more than $35 million owed by Kodsi’s entity for the partially constructed mixed-use tower at 942 Northeast First Avenue in downtown Miami. A Miami-Dade judge recently gave Kodsi’s entity about two months to repay Monarch; meanwhile, Kodsi’s company has countersued Monarch over the dispute.
This article has been updated to reflect statements from Dan Kodsi and his attorney indicating he is no longer associated with the Art & Entertainment District project.
