South Beach’s Goodtime Hotel, Backed By Pharrell Williams, Hit With $150M Foreclosure Lawsuit – AfroTech
The Goodtime Hotel, which occupies an entire block amid efforts to revitalize Washington Avenue in South Beach, Miami, is now at the center of a $150 million foreclosure lawsuit.
Filed by CMMT, a Los Angeles-based affiliate of commercial real estate developer CIM Group, the lawsuit claims the hotel’s owner, Washington Squared Owner, defaulted on a $152 million loan used to finance the project, The Miami Herald reports. The outlets cites filings in Miami-Dade Circuit Court.
New York-based hospitality developer Dreamscape Companies, led by CEO Eric Birnbaum, controls Washington Squared, per the outlet.
What Is The Goodtime Hotel?
When Goodtime opened in 2021, extensive media coverage identified Pharrell Williams and Miami nightlife entrepreneur David Grutman, known for LIV nightclub, as co-developers, according to The Miami Herald. Neither is named in the foreclosure lawsuit, and whether they had financial interest or other roles has not been mentioned. A representative said they have not been involved since mid- to late-2024.
The seven-story, 266-room hotel — known for its club-like atmosphere, tropical design, and rooftop pool parties — was once promoted as a catalyst for reviving Washington Avenue, per the outlet. However, the foreclosure lawsuit alleges the property has struggled to meet expectations, as tourism and hotel occupancy in Miami Beach have leveled off.
Washington Avenue itself has long lagged behind nearby Collins Avenue and Ocean Drive, which draw more foot traffic with popular shops and restaurants, The Miami Herald reports. Daniel Ciraldo, former executive director of the Miami Design Preservation League, claims vacant storefronts were a regular problem along the corridor in the years leading up to the Goodtime’s opening.
“The goal was to bring in more retail,” Ciraldo said, according to the outlet. Instead, he added, “Goodtime ended up going the way of the party scene.”
Attorneys for Washington Squared did not respond to the lawsuit or requests for comment, The Miami Herald notes.
Financial Losses And Legal Disputes Plague Goodtime Hotel
City officials approved zoning changes to encourage redevelopment, allowing buildings up to 75 feet tall, an increase from 50 feet, in exchange for increased street-level retail, the outlet notes. The Goodtime was one of the initiative’s most prominent projects — and beneficiaries — but the surrounding area’s lingering vacancies made it difficult to attract retail tenants and sustain momentum, it reports.
According to the complaint, lender CMMT has covered payroll, unpaid Florida sales taxes, and other operating costs as the hotel ran at a loss. The foreclosure filing follows months of legal disputes between the developers and lenders. A separate lawsuit, reported by The Real Deal, alleged the property had been in default for months, with negotiations underway to transfer control to the lender to avoid foreclosure.
What The Goodtime Hotel Lawsuit Alleges
That suit also claims developers, including Dreamscape and investor Michael Fascitelli, were personally responsible for at least $10 million in payments tied to operating losses but failed to pay, according to The Real Deal. In a counterclaim, they argued the lender was exploiting a drafting error in the loan agreement, which turned what would have been a three-month obligation into possible open-ended exposure to high costs and debt.
The complaint states the loan, originally up to $164 million and later reduced to $152 million, defaulted in 2024 after months of missed payments, The Miami Herald reports. The lenders say $149.3 million remains outstanding, excluding interest, fees, and other costs.
Attorneys involved in the case declined or did not respond to requests for comment, per the outlet.
