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IAMI, July 10, 2025 (GLOBE NEWSWIRE) -- A $67-Million lawsuit has been filed against two prominent U.S. real estate investment firms, Silverstein Capital Partners and Monarch Alternative Capital, by affiliates of Miami's Royal Palm Companies development firm. The complaint alleges conspiracy, civil misconduct, predatory lending, and other charges.
The crux of the dispute revolves around a $32-Million loan for the construction of the Legacy Miami Worldcenter skyscraper in downtown Miami. According to court documents, Silverstein initially issued the loan in 2022 but secretly sold it to Monarch's "dummy corporation," Legacy Lender Holdings, just as the loan was about to be repaid.
Kodsi, CEO of Royal Palm Companies, accuses Monarch of financial improprieties and retaliation for a previous project. Kodsi claims that Monarch vowed to retaliate after being confronted with a suspicious $10-Million cash displacement in 2024.
The lawsuit also alleges that Silverstein Capital Partners and Monarch Alternative Capital attempted to apply criminal usurious interest rates exceeding 45 percent on the construction loan, totaling $67-Million. According to Florida law, charging such high interest rates is a felony.
Kodsi's attorney, Joseph Pardo, explains that Silverstein presumably shared confidential information with others about the pending deal with the new lender, rather than seeking a final settlement of the outstanding amount. Monarch allegedly formed Legacy Lender Holdings as a "dummy corporation" to collect on the loan debt with illegally high interest rates.
A foreclosure lawsuit was filed against Kodsi on July 2, 2025, demanding full payment of the outstanding loan balance plus newly imposed interest rates. In response, Kodsi filed a counterclaim lawsuit accusing Monarch and Silverstein of conspiracy and other charges.
Kodsi describes Monarch's strategy as "destroying not to build" and claims that Monarch has no interest in developing the Miami community but rather seeks revenge and greed. This is not the first time Monarch has been accused of conniving a reprehensible takeover attempt, with a similar incident reported in Minneapolis in 2021.
The Legacy project at Miami Worldcenter features 310 micro-residential condominiums, 219 hotel rooms, and a 120,000 square foot health and wellness center. Kodsi plans to tap into the neighboring Overtown community's potential workforce and train unskilled people for construction and service industry jobs.
Royal Palm Companies has developed over 50 projects in Miami, Fort Lauderdale, West Palm Beach, Central and Southwestern Florida, and along the state's Space Coast since 1991. The company's mission remains focused on completing the Legacy Miami Worldcenter and protecting the interests of everyone who has invested in its vision and helping to improve downtown Miami.
Contact: Bryan Glazer | World Satellite Television News | 561-374-1365 | [email protected]
