The claim and the site
Legacy Lender Holdings LLC sued Royal Palm Companies in Miami-Dade Circuit Court on 2 July 2025. The action seeks $31.9 million in unpaid principal, interest, fees and taxes.
The plaintiff is an affiliate of Monarch Alternative Capital. Monarch bought the partially funded note from Silverstein Capital Partners on 6 June 2025, according to the complaint as reported by Bisnow.
The collateral is a 50-story mixed-use tower at 942 NE 1st Avenue in Miami Worldcenter, on a 1.5-acre site. Work stopped in March 2024 at roughly the sixteenth floor. It has not restarted.
The loan behind the claim
Silverstein wrote a $340 million construction loan in December 2021. The debt was modified once, in December 2023, and the balance rose by $3.2 million.
The tracker records the halt cause as plumbing and electrical slab penetrations found in the wrong place. No remediation scope, engineer's report or repair estimate sits on any page the desk can read.
A lender holding an incomplete asset has no completion schedule to underwrite. Interest accrues on the drawn balance while the asset produces nothing. Every month the site sits, the gap between the loan and the finished value widens.
Who files, and who negotiates
The affiliate files the foreclosure. The fund behind the affiliate negotiates any workout. Those are two different rooms.
A workout runs between the developer and Monarch. Enforcement runs between the developer and Legacy Lender Holdings. The record publishes no settlement terms, no intercreditor arrangement and no participation schedule.
The countersuit
Royal Palm countersued. The filing alleges predatory tactics by Monarch and states that Silverstein stopped funding the remaining balance of the loan. It points to an earlier dispute over a failed joint venture in Puerto Rico involving a Hyatt Regency hotel.
Bisnow reports that the developer's fraud allegations could not be independently verified. Publish them as the developer's claims, with the outlet named.
The complaint names Legacy MWC Trustee LLC, Dan Kodsi, Royal Palm Companies, Participant Capital Fund and more than 30 related entities as defendants.
The missed bond date
On 22 September 2025 Kodsi did not post a $32 million surety bond that a judge ordered under his settlement with Monarch. The same settlement required more than $35 million paid by early November.
The bond keeps a developer in possession while the case runs. A posted bond buys time. A missed bond restores the remedies the settlement had suspended.
The tracker names the two remedies: receivership or a debt auction. A receiver takes the site and its contracts. An auction sets a price. Both move the ownership question onto a court calendar, and neither needs a ruling on the defect.
The lien queue
A dozen contractors filed liens and lawsuits in Miami-Dade Circuit Court. The lien foreclosures totalled nearly $27 million, as reported by the South Florida Business Journal.
Lien priority turns on filing dates and the lender's recorded position. A buyer at auction inherits the queue unless the sale clears it. The $27 million figure is a report of filings and not a judgment.
No operator on the record
The programme paired hotel rooms with fully furnished residences. No brand, operator, management agreement, franchise term or licence appears in the file.
A successor inherits no operating contract and no reservation channel. It takes the asset with the operating decision open, and it inherits the lien queue with it.
What the court file carries
Four documents decide what a successor pays and what it inherits. The settlement's payment schedule. The bond order's terms and its cure window. The answer and the counterclaim. The lien filings by date and amount.
None of the four is summarised on a project page. Read the docket at Miami-Dade Circuit Court.