Developer Dan Kodsi has been given just over two months to pay more than $35 million to Monarch Alternative Capital, the lender for the Legacy Hotel & Residences project at Miami Worldcenter. The order was issued by Miami-Dade Circuit Court Judge Spencer Eig, according to court filings. If Kodsi’s Legacy MWC Trustee meets this payment, it will satisfy the mortgage on the downtown Miami property.
The order also grants an emergency injunction requested by the developer, a step needed for possible refinancing of the loan. At a July 31 hearing, Kodsi said he is working on securing $390 million in new financing.
The dispute began after Monarch took over the loan from Silverstein Capital Partners on June 6 and then filed for foreclosure about a month later. Monarch alleged that Kodsi owed $31.9 million in unpaid debt related to the partially built 50-story mixed-use tower at 942 Northeast First Avenue.
Construction of Legacy stalled last year. The building is planned to include 310 condos designed for short-term rentals, a hotel with 219 rooms, and a Blue Zones medical and wellness center. Condo sales began in 2019 and sold out during the pandemic with an estimated $160 million in sales.
Judge Eig’s order, entered August 22, states that within one month the developer must post a $32 million surety bond. Within 75 days—around November 5—the developer must pay approximately $35.1 million plus accrued interest and late fees. If these conditions are met, Monarch is required under Florida law to release its claim on the mortgage.
Kodsi and attorneys for both parties declined to comment due to a gag order included in Judge Eig’s ruling that prohibits public statements about the case.
Kevin O’Grady of Concord Summit Capital has been hired by Kodsi to help secure financing for Legacy Hotel & Residences. During the July hearing, O’Grady reported that potential lenders have been identified; new funding could involve $235 million in C-PACE financing along with $160 million from Sculptor Real Estate (Sculptor Capital Management).
Monarch seeks as much as $67.5 million from Kodsi’s group—a figure including fees, interest, and what is described as a “return differential” of $32.3 million based on calculations assuming full funding of a previous $290 million note.
Kodsi’s firm alleges misconduct by Monarch involving fraudulent misrepresentation and bank fraud related to another project—Coco Beach—in which Monarch was also involved as a partner before shifting focus back to Miami Worldcenter.
Silverstein Capital Partners originally provided up to $340 million in construction financing for Legacy in late 2021 but only funded about $30 million of that amount so far.
If refinancing succeeds, Kodsi aims to restart construction at Legacy Hotel & Residences. He has previously stated that Royal Palm affiliates have invested more than $140 million equity into this project while condo buyers have put down around $50 million in deposits.
Legacy is part of Miami Worldcenter—a larger development spanning 27 acres with an estimated value of $6 billion—master-planned by Miami Worldcenter Associates (a joint venture led by CIM Group, Art Falcone, and Nitin Motwani). Royal Palm Companies also developed Paramount Miami Worldcenter nearby; it was completed in 2019.
