CIM Group Secures Ownership of Miami’s Goodtime Hotel Following Foreclosure
The landscape of South Beach hospitality has shifted significantly as the Los Angeles-based investment powerhouse, CIM Group, has officially seized control of the iconic Goodtime Hotel. The acquisition was finalized through a Miami-Dade County foreclosure auction, where the firm leveraged its position as the primary lender to secure the 266-room asset via a strategic $100 credit bid.
A Strategic Financial Maneuver
This acquisition serves as the culmination of a protracted legal and financial battle. In May 2026, the lender secured a staggering $204.7 million foreclosure judgment against the property owners. By utilizing the credit bid mechanism, CIM Group not only reclaimed the asset but also optimized its tax position, effectively minimizing the documentary stamp and local property transfer taxes typically associated with such high-value real estate transactions.
From Celebrity Spotlight to Financial Distress
The trajectory of the seven-story landmark at 601 Washington Avenue has been nothing short of volatile. When the hotel debuted in 2021, it was heralded as a premier destination, bolstered by the star power of musician Pharrell Williams and nightlife titan David Grutman. However, the initial hype failed to translate into long-term fiscal stability. As the property’s economic health deteriorated, both Williams and Grutman formally severed their professional associations with the hotel in 2024.
The Collapse of Imperial Companies’ Vision
The developers behind the project, Eric Birnbaum and Michael Fascitelli of Imperial Companies, found themselves unable to navigate the tightening credit environment. After defaulting on a 2023 forbearance agreement, the ownership group stopped making interest payments entirely by 2024, triggering the inevitable foreclosure process.
The sheer scale of the debt highlights the severity of the project’s failure. The $204.7 million judgment is broken down as follows:
- $149.3 million in outstanding principal.
- $32.4 million in accumulated interest.
- $21.1 million in punitive default interest charges.
Ongoing Legal Challenges and Vendor Disputes
Beyond the primary foreclosure, the hotel entity remains entangled in a web of secondary litigation. The property is currently facing multiple breach-of-contract claims from various service providers, including a $1.4 million lawsuit from 6 Washington Poll and a separate $523,800 dispute regarding unpaid staffing services from Link Hospitality. These mounting liabilities underscore the complex hurdles the new ownership will face as they attempt to stabilize the asset in an increasingly competitive Miami market.
[H/T] The Real Deal
