A development site in Miami’s Blue Lagoon area, previously approved for apartments and a hotel, is now facing foreclosure and is set to be auctioned due to a $17.9 million lawsuit. Miami-Dade County Circuit Court Judge Thomas J. Rebull granted the foreclosure judgment on August 10 in favor of TIG Romspen US Master Mortgage against 7 at Blue Lagoon LLC and loan guarantor Caroline Weiss. The judgment is tied to a loan with $13.2 million in outstanding principal and additional interest and fees. The court found that the borrower failed to repay the loan by its maturity date on October 1, 2022, and neglected to pay real estate taxes from 2020 to 2022.
7 at Blue Lagoon. Credit: Kobi Karp Architecture & Interior Design.
Per the South Florida Business Journal, the 6.9-acre vacant property, located at 4865, 4875, and 4885 Northwest 7th Street, is set to be auctioned online through the county court on October 8. Situated in a major office park just south of Miami International Airport, the site was approved in 2019 for a six-building mixed-use project, including 888 apartments, 294 hotel rooms, and 1,412 parking spaces. However, the project never materialized, leading to the foreclosure lawsuit filed in 2023.
Local attorney Michael J. Schlesinger, representing 7 at Blue Lagoon and Caroline Weiss, has filed a motion for a rehearing and plans to appeal if it is denied. Schlesinger argues that the court cannot grant final summary judgment of foreclosure while a pending counterclaim against the lender remains unresolved. He contends that the outcome of the counterclaim could directly impact the foreclosure ruling.
7 at Blue Lagoon. Credit: Kobi Karp Architecture & Interior Design.
The counterclaim, filed by 7 at Blue Lagoon and Weiss in July 2023, accuses TIG Romspen US Master Mortgage of inflating attorney fees and failing to disburse loan proceeds reasonably to fund the development. Additionally, Schlesinger noted in his motion that recent appraisals estimate the property’s value to be over $100 million, significantly higher than the foreclosure judgment amount.
The property has been entangled in litigation for several years. In 2014, Adeena Weiss, Caroline Weiss’s daughter, sued her mother, claiming partial ownership of the property. However, a judge ruled in December 2022 that the property belonged solely to the mother. The daughter is currently appealing this ruling.
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