Foreclosure Hits Legacy Miami Worldcenter Amid Developer-Lender Showdown

The long-anticipated Legacy Miami Worldcenter has become the center of a legal and financial storm. The 50-story mixed-use tower, part of the ambitious Miami Worldcenter development, is now in foreclosure proceedings following a lawsuit filed by its lender, Legacy Lender Holdings LLC — an affiliate of Monarch Alternative Capital.

On July 2, 2025, Monarch filed a foreclosure action in Miami-Dade Circuit Court, claiming developer Royal Palm Companies, led by Dan Kodsi, owes $31.9 million in unpaid principal, interest, fees, and property taxes. The lawsuit comes after more than a year of construction delays and funding issues that halted work at the site in March 2024.

Legacy Miami Worldcenter was originally designed as a one-of-a-kind wellness-focused tower combining residences, hotel accommodations, and a state-of-the-art medical center. Despite breaking ground in 2021 with a projected 2024 completion date, the project stalled mid-rise due to structural redesigns and unresolved financing gaps.

In response to the foreclosure suit, Royal Palm Companies fired back with a countersuit accusing Monarch of “financial sabotage” and engaging in predatory lending tactics. The developer alleges fraud, breach of contract, and intentional interference, claiming Monarch never intended to fully fund the project and instead sought to force a default to gain control of the asset.

The legal tug-of-war raises significant questions about the future of the high-profile development and its place in the broader Miami Worldcenter master plan — a massive 27-acre, multi-billion-dollar district in the heart of Downtown Miami.

For current investors and prospective buyers, the uncertainty surrounding Legacy may cause hesitation, though it also opens the door for new capital partners or a potential sale of the project’s debt.

What’s Next?

• The court will weigh both the foreclosure claim and the countersuit.

• Monarch could pursue appointment of a receiver or auction the property’s debt.

• Royal Palm may seek a financial lifeline to refinance or restructure.

Legacy’s fate remains uncertain, but one thing is clear: this legal battle could reshape more than just the Miami skyline — it could serve as a cautionary tale for developer-lender relationships in today’s high-stakes real estate environment.