Miami hotel for sale? Not quite, the Sagamore Hotel’s delinquent mortgage will be auctioned to the highest bidder this week. However the Sagamore wants the judge to keep its lender from going through with the auction.
In a countersuit filed in Miami-Dade Circuit Court, The South Beach boutique hotel filed a countersuit claiming that the lender, LNR Property Corporation, told them to stop making loan payments in hopes of restructuring their debt. When they went into default, the lender, LNR, took over management and plan to auction off the $32 million mortgage. This sets the stage for a Miami hotel for sale foreclosure on the 93-room hotel.
Dennis Richard, a Sagamore lawyer, said "They never would have stopped making the payments if it wasn't for LNR saying, 'stop making payments so we can get the file,"'. The hotel owners have enough money to 2bring them current -- they always did.''
No one at LNR responded to an interview request.
Sagamore hopes that the judge will and halt the upcoming auction and let them make the loan current. Bids are due Thursday. According to the Sagamore, the court papers mention that the Sagamore's endeavor to recast itself with the help of Playboy introducing a restaurant and bar deal that would have brought in an additional $1 million a year.
According to the court papers however, during a December meeting with Playboy LNR executives walked out before the pitch could even begin.
Contributed by MLR Realty
