CIM Group filed a $149.3 million foreclosure complaint on Mar. 24 against the owners of the Goodtime Hotel in Miami Beach, seeking to seize the property over alleged loan defaults.
The legal action highlights ongoing financial and operational challenges at the celebrity-associated hotel, which has struggled since opening in 2021 despite high-profile partners and significant investment.
According to court filings, CIM alleges that an entity managed by Eric Birnbaum and Michael Fascitelli of Imperial Companies failed to comply with forbearance agreements after ceasing regular interest payments on a $152 million loan in 2024. The developers also allegedly did not pay off the debt when it matured that year. Neither Birnbaum, Fascitelli, nor Jeffrey Gilbert, attorney for CIM’s affiliate, commented on the matter.
The dispute extends beyond Florida courts; last year in New York Supreme Court, CIM sued Birnbaum and Fascitelli over a $10 million personal guarantee payment related to the same property. The developers have responded with a counterclaim accusing CIM of exploiting a drafting error in their agreement that they say increased their liability beyond what was intended.
Goodtime Hotel’s ownership group reportedly owes approximately $149.3 million plus additional fees and interest under the terms of their loan documents. As part of its foreclosure action, CIM is also seeking control over all hotel income during litigation proceedings.
Despite initial celebrity involvement from Pharrell Williams and David Grutman—who are no longer associated with the project—the hotel has faced operational issues such as noise complaints leading to city reviews of its permits. The broader implications suggest ongoing uncertainty for hospitality ventures reliant on high-profile partnerships amid challenging market conditions.
