A legal dispute over the Kimpton Surfcomber Hotel’s ground lease has taken a turn in favor of hotel owner Chisholm Properties South Beach. Miami-Dade Circuit Court Judge Thomas Rebull dismissed four out of five claims brought by siblings Sean and Nicole Mirmelli, who sought to terminate a 99-year ground lease tied to half of the property at 1731 Collins Avenue.
The dismissed counts included breach of contract, commercial eviction, and slander of title. Judge Rebull also denied the Mirmellis’ request to appoint a receiver for the parcel, which is co-owned by Chisholm and the Mirmellis through a trust. Each party owns 50 percent of the land at 1731 Collins Avenue, one part of the assemblage that makes up the Surfcomber Hotel.
Chisholm purchased the three-story hotel in 2004 for $1.4 million and assumed the existing ground lease on 1731 Collins Avenue, allowing continued operation of the Art Deco building originally constructed in 1948. The purchase also included outright ownership of an adjacent parcel at 1717 Collins Avenue.
Mirmelli attorney Joseph Pardo said his clients intend to continue fighting: “We believe there was an ongoing breach because the lease restrictions are covenants that run with the land,” Pardo stated via email. He added that they will seek a rehearing or appeal if necessary.
In their lawsuit, Sean and Nicole Mirmelli alleged that Chisholm breached terms of the long-term lease by altering building conditions and taking actions not permitted under its provisions. They claimed Chisholm was responsible for liens on the property and had obtained an unauthorized $20.5 million loan in 2014 using both parcels as collateral.
Additionally, they accused Chisholm of submitting mortgage documents with an estoppel letter allegedly containing a forged signature from Nicole Mirmelli—an accusation she supported in an affidavit denying her signature on those documents.
Abbey Kaplan and Philippe Lieberman, representing Chisholm Properties South Beach, responded: “Our client received the fully executed Estoppel Certificate directly from the Mirmellis,” their joint statement read. “And a notary testified under oath that he personally witnessed the signing. Any alleged misdeed was attributable to the Mirmellis.” The lawyers called the suit “a frivolous and misguided attempt to unwind a long-standing lease.”
Judge Rebull ruled some claims were barred due to statute-of-limitations constraints and determined that without consent from Chisholm, Sean and Nicole Mirmelli lacked standing to enforce certain aspects of their agreement regarding management or enforcement of ground-lease terms.
