Article Courtesy of The Miami Beach
By Susan askew
April 14, 2021
Though the tourism and hospitality market is
beginning to recover, the financing market for hotels remains
challenging and it’s caught the owners of the Sanctuary Hotel short.
Entities controlled by the Menin and Galbut families, which sold the
Sanctuary Hotel-Condominium to an LLC led by Blue Road partners Marcelo
Tenenbaum and Jorge Savloff, filed a foreclosure lawsuit seeking $9.5
million plus interest from the new owners.
Blue Road, a
locally-based hotel investment, development, and
management firm, bought the Sanctuary at 1745 James
Avenue through an investment group known as 1745 James
LLC in August 2019. According to the filing in the
Eleventh Judicial Circuit Court of Miami-Dade County,
the investment group financed the transaction with two
notes from the prior owners, the first for $7.5 million
maturing on August 15, 2022 and the second for $2
million maturing on August 15, 2020. Monthly payments on
both notes were scheduled to begin in September 2019.
An April 2020 modification to the notes provided some
relief on payment of outstanding interest and extended
the maturity date of the smaller note until December
2020. The maturity date of the larger one remained the
According to the court filing, 1745 James LLC is in
default of both notes, failing to make payments starting
in February on the $7.5 million note and all payments on
the $2 million note since December 2020.
Foreclosure Action Filed Against Investment Group
that Purchased Sanctuary Hotel-Condominium in Miami Beach.
Tenenbaum, a Miami Beach resident, told RE:MiamiBeach, “We are trying to
resolve the situation with the lender, trying to get new funding to make
an arrangement with the lender as a result of the difficulty created by
Tenenbaum and Savloff have approved plans to demolish the old Sanctuary
Hotel building which has been closed since Hurricane Irma and construct
a new five-story hotel with 90 rooms and a food and beverage component.
Other Blue Road properties in Miami Beach include the Redbury, Aqua, and
Berkeley Hotels. Their recently renovated Berkeley Park Hotel, the
former Sadigo, reopened early this month under the Accor MGallery brand.