There soon may be other hotels for sale in Miami: Continental Oceanfront, a South Beach hotel owned by Ian Schrager Co., of Studio 54 fame, could be seized in a $146.5 million foreclosure action.
According to Miami-Dade County Circuit Court records, Bank Midwest and Swedbank based in Kansas City filed a notice of foreclosure on the Miami Beach real estate property in December 16.
The lawsuit was filed against the Miami Beach real estate property located at 1825 Collins Avenue Owner in May but the lenders didn’t officially issue their intent to seize the 250-room hotel until last month.
Steven Siff, who represents 1825 Collins Avenue, could not immediately be reached for comment.
The Continental Oceanfront was one of three Florida hotels that New York-based Ian Schrager Co. and partner Aby Rosen announced that they purchased in 2005. Ian Schrager is well known for leading Palladium nightclubs and later managing the Delano and Shore Club in South Beach for Morgans Hotel Group, in addition to Studio 54. Another one of those hotels for sale in Miami that Schrager and Rosen’s companies bought in 2005, in April 2009 the Continental Downtown Bayside, was hit with a $21.9 million foreclosure lawsuit from Lehman Bros.. The same month, Lehman Bros. filed a $21.7 million foreclosure against a Rosen-led company that owns an uncompleted hotel site in Palm Beach.
In 2005, the Continental Oceanfront was bought for $45.8 million by 1825 Collins Avenue Owner, which planned to remodel it. Lehman Bros. refinanced the mortgage at $146.5 million two years later. Following Lehman Bros.’ bankruptcy filing in 2008, it assigned the loan to Midwest Bank in February 2009.
Orlando attorney Suzanne Gilbert, who represents Bank Midwest and Swedbank in the lawsuit, did not immediately return a call seeking comment.
Contributed by MLR Realty
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