US: Miami’s W South Beach is facing a foreclosure suit over a $378-million mortgage on unsold condo units.
The hotel, which is managed by Starwood Hotels and Resorts, has been recording high occupancy levels but German bank Hypo Real Estate Capital is pursuing the foreclosure action against the hotel over 216 empty condo units.
According to reports, New York developer David Edelstein, the owner of W South Beach, says the foreclosure suit is a bid by Hypo to gain more money from the previous loan before another lender steps in to finish financing.
Edelstein said his company is currently on debt payments for mortgages on the South Beach property.
A report in Condo Vultures stated that 207 of the hotel’s condo units were sold for $310.2 million, but the most recent sale was in January 2013. The hotel is also reportedly facing multiple lawsuits from buyers looking to end their contracts.