CIM Group has filed a $149.3 million foreclosure complaint against the owners of the Goodtime Hotel in Miami Beach, escalating an ongoing legal dispute. The filing, dated Jan. 27, targets an entity managed by Eric Birnbaum and Michael Fascitelli of New York-based Imperial Companies for allegedly failing to meet obligations under forbearance agreements since 2024, after regular interest payments on a $152 million loan ceased and the debt was not paid off at maturity.
The situation is significant because it involves a high-profile property with celebrity connections that has faced financial and operational challenges since opening in 2021. The hotel’s struggles highlight broader issues facing hospitality ventures that rely on high-profile partnerships but may still encounter difficulties meeting financial commitments.
Birnbaum, Fascitelli, and Jeffrey Gilbert—attorney for CIM’s affiliate—declined to comment on the matter. In addition to the Miami foreclosure case, Birnbaum and Fascitelli are also defendants in a related lawsuit in New York Supreme Court over a $10 million personal guarantee tied to the same loan.
The developers acquired the site for $36 million in 2015 before bringing on music producer Pharrell Williams, nightlife entrepreneur David Grutman, and designer Ken Fulk as partners. Construction was funded by a $45 million Bank OZK loan prior to its debut as part of Marriott’s Tribute Portfolio. A spokesperson told the Miami Herald that both Grutman and Pharrell are no longer involved with the hotel.
Despite its initial celebrity appeal, court filings show that Goodtime Hotel has faced ongoing operational challenges such as noise complaints leading to reviews by local authorities. The foreclosure complaint states that roughly $149.3 million is owed by ownership along with accrued interest and fees; CIM is seeking enforcement measures including assignment of leases and revenues while litigation proceeds.
In response to claims regarding breach of guarantee over missed payments when the loan matured, Birnbaum and Fascitelli have counterclaimed that CIM exploited a drafting error which extended their liability beyond intended terms—a mistake they allege was overlooked by their former counsel during refinancing negotiations.
