Developer Dan Kodsi has been given just over two months to pay more than $35 million to his lender, Monarch Alternative Capital, in order to resolve a foreclosure lawsuit tied to the Legacy Hotel & Residences project at Miami Worldcenter. The order was issued by Miami-Dade Circuit Court Judge Spencer Eig, according to court filings.
The judge’s decision grants an emergency injunction that allows Kodsi’s Legacy MWC Trustee the opportunity to refinance the loan. Kodsi, who is CEO of Royal Palm Companies, told the court on July 31 that he is working on securing $390 million in refinancing for the project.
Monarch Alternative Capital took over the loan from Silverstein Capital Partners on June 6. About a month later, Monarch filed a foreclosure suit alleging that Kodsi owed $31.9 million in unpaid debt related to the partially built 50-story mixed-use condo and hotel tower at 942 Northeast First Avenue in downtown Miami.
Construction on Legacy stalled last year. The planned building includes 310 condos designed for short-term rentals, a 219-key hotel, and a Blue Zones medical and wellness center. Condo sales began in 2019 and sold out during the pandemic for an estimated $160 million.
Under Judge Eig’s order entered August 22, the developer must post a $32 million surety bond within one month and pay about $35.1 million plus interest and late fees within 75 days—setting a deadline around November 5. If these requirements are met, Monarch is required under Florida law to satisfy the mortgage.
Kodsi declined comment on the case, as did attorneys for both sides. The judge’s order prohibits public statements from those involved with the case.
Kevin O’Grady, chairman of Concord Summit Capital, has been hired by Kodsi to find new financing for Legacy Hotel & Residences. During a July hearing, O’Grady said his firm had identified potential lenders. New financing could include $235 million in C-PACE funding and $160 million from Sculptor Real Estate (likely referring to Sculptor Capital Management).
Monarch is seeking $67.5 million from Kodsi’s group—a figure that includes fees, interest, and a return differential of $32.3 million based on full funding of a $290 million note due next June, according to counterclaims filed by Royal Palm Companies.
Royal Palm alleges that Monarch committed “serious misconduct,” including fraudulent misrepresentation and bank fraud regarding its Coco Beach affiliate project but was forced to back down before turning its focus to Miami Worldcenter.
Silverstein Capital Partners originally provided $340 million in construction financing for Legacy in late 2021 but only funded about $30 million of that amount.
If refinancing succeeds, Kodsi intends to restart construction on Legacy Hotel & Residences. He previously stated that Royal Palm affiliates have invested more than $140 million in equity into the project and condo buyers have made approximately $50 million in deposits.
Legacy Hotel & Residences is part of Miami Worldcenter—a larger development spanning 27 acres with an estimated value of $6 billion. The master development team includes CIM Group, Art Falcone, and Nitin Motwani; they have sold parcels within Miami Worldcenter to other developers such as Royal Palm Companies which also completed Paramount Miami Worldcenter in 2019.
