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, issued by Miami-Dade Circuit Court Judge Spencer Eig, would allow Kodsi’s Legacy MWC Trustee to satisfy the mortgage on the downtown Miami property.
The court’s decision grants an emergency injunction required for a potential refinancing of the loan. During a July 31 hearing, Kodsi, who is CEO of Royal Palm Companies, said he is working on a $390 million refinancing plan.
Monarch Alternative Capital took over the loan from Silverstein Capital Partners in June and filed a foreclosure lawsuit about a month later. The lender claimed that the developer owed $31.9 million in unpaid debt related to the partially built 50-story mixed-use condo and hotel tower at 942 Northeast First Avenue.
Construction of Legacy stopped last year. The planned building includes 310 condos designed for short-term rentals, a 219-key hotel, and a Blue Zones medical and wellness center. Condo sales began in 2019 and sold out during the pandemic for an estimated $160 million.
According to Judge Eig’s order entered August 22, both parties agreed that the developer must post a $32 million surety bond within one month. Within 75 days—by about November 5—the developer must pay roughly $35.1 million plus accrued interest and late fees. If these deadlines are met, Monarch will be required under Florida law to satisfy the mortgage.
Kodsi and attorneys for both sides declined to comment due to a gag order imposed by Judge Eig that prohibits public statements about the case.
Kevin O’Grady, chairman of Concord Summit Capital, was hired by Kodsi to secure financing for the project. O’Grady stated during a July hearing that his firm has identified possible lenders for new financing, which could include $235 million in C-PACE financing and $160 million from Sculptor Real Estate (likely referring to Sculptor Capital Management).
Monarch is seeking $67.5 million from Kodsi’s group, including fees, interest, and what it calls a “return differential” of $32.3 million—a minimum return based on funding of a full $290 million note due next June—according to counterclaims filed by Royal Palm Companies.
Royal Palm alleges misconduct by Monarch involving fraudulent misrepresentation and bank fraud in connection with another project before Monarch shifted its focus to Miami Worldcenter.
Silverstein Capital Partners initially provided $340 million in construction financing for Legacy in late 2021 but only funded about $30 million according to Kodsi’s statement at the July hearing.
If refinancing is successful, Kodsi plans to restart construction on Legacy Miami Worldcenter. He previously said Royal Palm affiliates have invested more than $140 million in equity into the project while condo buyers have put down about $50 million in deposits.
Legacy is part of Miami Worldcenter—a large-scale development spanning 27 acres with an estimated value of $6 billion—led by CIM Group along with Art Falcone and Nitin Motwani as master developers who have sold sites within the complex to other builders. Royal Palm also developed Paramount Miami Worldcenter nearby, completed in 2019.
