Forman Capital has initiated foreclosure proceedings on a planned condo-hotel development site in Miami’s Art & Entertainment District, citing an alleged $8.3 million loan default.
The legal action 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 suit targets two entities that own the 0.5-acre assemblage at 1317-1352 North Miami Avenue, where a 30-story condo-hotel had been proposed.
Developer Dan Kodsi was initially managing the project but is no longer involved, according to both Kodsi and borrowers’ attorney Joseph Pardo. “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.”
Forman Capital declined to comment through a spokesperson.
The entities purchased the property for $10.7 million in 2022 and are working with city officials to finalize design plans and permitted density, Pardo stated.
Records indicate that last year Forman Capital issued the bridge loan to refinance an earlier mortgage. The foreclosure complaint seeks default interest and fees totaling about $220,000 in addition to the principal amount.
Previously, Kodsi and former partner Rafael Pecchio had intended to build a 200-unit apartment complex on the site before shifting focus last year toward developing a condo-hotel with 360 units—including short-term rentals—after Pecchio exited the partnership.
Separately, Kodsi is contesting another foreclosure involving his Legacy Hotel & Residences project at Miami Worldcenter. In July, Monarch Alternative Capital filed for foreclosure related to that partially built tower after Judge Spencer Eig gave Kodsi’s entity roughly two months to repay more than $35 million owed on the project at 942 Northeast First Avenue; Kodsi’s group has countersued Monarch.
This article reflects updates clarifying that Dan Kodsi is no longer associated with the Art & Entertainment District project as confirmed by him and his attorney.
