1616-65 The Herald-Beach`s Royal Palm resort faces foreclosure by lender WEDNESDAY,JANUARY 12,2005 I 3C
HOTELS
each's Royal Palm resort
faces foreclosureby lender
The holder of Royal gage from Union Planters The suit argues the hotel which was built on
Palm's mortgage,a New Bank in November,with Ach-
York hotelier that wants to enbaum saying he wanted to public land as part of a joint venture with
take over the hotel before add the 417-room hotel to his Miami Beach should be auctioned offto
it's sold to new owners for Portfolio-
$128 million,filed a LAWYER: A TACTIC satisfy the loan.
foreclosure suit.
A Peebles lawyer described
BY DOUGLAS HANKS!!! Tuesday's suit as a tactic to But the plaintiff in the suit, off to satisfy the loan.
dhanks@herald.com wring more money out of the a New York bank working for The lawsuit is the latest
The holder of the Royal Royal Palm when it sells the Achenbaum, pointed to an reminder of the pressure Pee-
Palm Crowne Plaza Resort's hotel to the Falor Cos. and outstanding$18 million judge- bles faces to close the Royal
$54 million mortgage has filed pays off the loan.The bank has ment against the hotel as cause Palm sale. The Peebles corn-
foreclosure proceedings demanded penalty interest of for declaring the Royal Palm pany that owns the hotel,RDP
against the South Beach hotel, 18 percent, or about $27,000 in default of its mortgage. Royal Palm,has until Feb.5 to
asking a judge to sell the prop- per day, triple the regular 6 North Fork Bank is asking a post a $18 million bond as it
erty at auction if the loan can't percent rate. judge to grant the default appeals millions in back fees
be paid in full. The Peebles lawyer,Vance interest and to set a deadline awarded contractor Clark
A bank representing New Salter of Hunton& Williams for the hotel to pay off the Construction.
York hotelier William S.Ach- in Miami, said Achenbaum principal and interest on the Peebles has said he has
enbaum filed the lawsuit Mon- cannot force an early pay-off loan. lined up a $114 million refi-
day in Miami-Dade Circuit of the loan,which comes due nancing package in case the
Court, about three weeks in March. The Falor sale is AUCTIONED OFF? Falor sale falls through,though
before owner R.Donahue Pee- scheduled to close by Feb. 4. Short of that, the suit it's not clear how quickly he.
bles is scheduled to sell the "What they're trying to do argues,the hotel—which was could access those funds. His
Royal Palm for $128 million. is jump with both feet into our built on public land as part of a lawyers could also ask judges
An Achenbaum company closing, and trying to disrupt joint venture with Miami for extensions on court-
bought the Royal Palm mort- it,"Salter said. Beach—should be auctioned ordered payments.