Trouble on South Beach: Achenbaums Sue Over Gansevoort Hotel
- Gansevoort Hotel Group
- The hotel’s rooftop pool
Miami vice, indeed. The strife at the trendy Gansevoort South Hotel on Miami’s South Beach continues.
Former owner Gansevoort Hotel Group, a company controlled by New York father-and-son developers William and Michael Achenbaum, on Friday sued lender Column Financial Inc. in Florida state court. The Achenbaums allege Column is unlawfully trying to break their 20-year pact to manage the 334-room hotel.
The suit is just the latest nasty twist at the Gansevoort South. The Achenbaums bought the hotel, renovated it and reopened it in 2007, using as financing a $314 million mortgage and an $89 million mezzanine loan from Column.
Since then, Gansevoort Hotel Group has had difficulty selling the project’s 259 condominiums, leading to financial troubles. Column, a unit of Credit Suisse AG, declared a default of the mezzanine loan in December and foreclosed on Jan. 28.
Now, the Achenbaums, whose company also manages Gansevoort hotels in New York and the Turks and Caicos islands, say Column wants Gansevoort out of the thriving Miami Beach hotel due to the struggles of the condo portion of the project.
“Though Gansevoort South is profitable and amongst the leaders in its competitive set, Column and its affiliates are attempting to violate a legally binding agreement as retribution for the failure of the condominium element of the project,” Michael Achenbaum said in a statement distributed Friday.
A Credit Suisse spokesman said the company is reviewing the complaint but declined to comment further.
The Achenbaums designed the Gansevoort South to be one of the trendiest hotels in chic South Beach. The property includes a rooftop pool and 63,000 square feet of shops, salons and restaurants.
February 06 2010 02:09 pm | Real Estate News