Forman Capital has initiated foreclosure proceedings on a development site in Miami’s Art & Entertainment District, citing an alleged $8.3 million loan default. The property, located at 1317-1352 North Miami Avenue, was intended for a 30-story condo-hotel project.
The suit was filed on September 5 in Miami-Dade Circuit Court by an affiliate of Delray Beach-based Forman Capital, led by Brett Forman and Ben Jacobson. The complaint targets two entities that own the half-acre assemblage and seeks not only repayment of the bridge loan but also default interest and fees amounting to about $220,000.
Developer Dan Kodsi was previously managing the project. However, both Kodsi and Joseph Pardo, attorney for the borrowers, told The Real Deal that Kodsi is no longer involved with the development.
Pardo stated that his clients are actively negotiating with Forman Capital to resolve the issue. “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 acquired the assemblage for $10.7 million in 2022 and are currently working with city officials to finalize design details and permitted density for the project, according to Pardo.
Records indicate that last year Forman Capital issued the disputed loan to refinance an earlier mortgage.
Originally, Kodsi and former partner Rafael Pecchio had planned a 200-unit apartment building on the site. After Pecchio left the partnership, Kodsi shifted plans toward developing a condo-hotel with 360 units, some intended for short-term rentals.
Separately, Kodsi is contesting another foreclosure case related to his Legacy Hotel & Residences project at Miami Worldcenter. A judge recently gave his entity about two months to repay more than $35 million owed to Monarch Alternative Capital after Monarch filed its own foreclosure complaint against the partially constructed tower at 942 Northeast First Avenue in downtown Miami. Kodsi’s entity has countersued Monarch.
This story has been updated following confirmation from Dan Kodsi and his attorney that he is no longer involved in the Art & Entertainment District project.
