A legal dispute over the Kimpton Surfcomber Hotel in Miami Beach has resulted in a court ruling favoring hotel owner Chisholm Properties South Beach, led by Robert Balzebre. Last week, Miami-Dade Circuit Court Judge Thomas Rebull dismissed four of five claims brought by siblings Sean and Nicole Mirmelli, who sought to terminate a 99-year ground lease on one of two parcels beneath the hotel.
The dismissed claims included breach of contract, commercial eviction, and slander of title. The judge also denied the Mirmellis’ requests to cancel the ground lease and appoint a receiver to manage the parcel at 1731 Collins Avenue. Both Chisholm and the Mirmellis’ trust each own half of this property.
Chisholm acquired the three-story hotel for $1.4 million in 2004, along with assuming the ground lease at 1731 Collins Avenue that permitted construction of the current 186-room Art Deco building completed in 1948. The purchase also included outright ownership of an adjacent parcel at 1717 Collins Avenue.
Joseph Pardo, attorney for the Mirmellis, said his clients plan to seek a rehearing and may appeal if necessary. “We believe there was an ongoing breach because the lease restrictions are covenants that run with the land,” Pardo stated.
Chisholm’s attorneys Abbey Kaplan and Philippe Lieberman described the lawsuit as “a frivolous and misguided attempt to unwind a long-standing lease.”
The Mirmellis alleged that Chisholm breached terms of the ground lease by making unauthorized changes to the building and securing liens against it. They also claimed Chisholm obtained an unauthorized $20.5 million loan in 2014 using both parcels as collateral, including submitting mortgage documents with what they allege was a forged signature from Nicole Mirmelli on an estoppel letter confirming details about the lease.
Chisholm’s lawyers disputed these accusations: “Our client received the fully executed Estoppel Certificate directly from the Mirmellis,” their statement read. “And a notary testified under oath that he personally witnessed the signing. Any alleged misdeed was attributable to the Mirmellis.”
Judge Rebull ruled that some claims related to liens and mortgages were barred by statute of limitations, and found that without Chisholm’s consent, the Mirmellis lacked standing to enforce provisions of the ground lease.
