Pharrell Williams saw a South Beach hospitality venture enter court battles as lenders moved to seize control of the struggling Miami property.
A Pharrell-backed luxury hotel project faces financial turmoil in Miami as a $150 million foreclosure lawsuit has threatened one of South Beach’s most talked about developments.
The Goodtime Hotel, a seven story 266 room property, has become the focus of a foreclosure complaint filed by CMMT, a Los Angeles affiliate of commercial real estate firm CIM Group. According to court filings cited by The Miami Herald, the lender claims the ownership entity Washington Squared Owner defaulted on a $152 million loan tied to the property’s development.
The lawsuit does not formally name Williams or Miami nightlife figure David Grutman as defendants, despite both being heavily associated with the project when it launched in 2021. Reports indicate both men have not been involved with the property since mid to late 2024.
Instead, the ownership group is controlled by Dreamscape Companies, a New York hospitality development firm led by CEO Eric Birnbaum. Pharrell is a minority owner, according to reports, but oftentimes reported as the face.
When the pastel colored property first opened its doors, it was marketed as more than just another boutique stay. Developers pitched it as a spark to revive Washington Avenue, a stretch long overshadowed by the busier Collins Avenue and Ocean Drive corridors. The hotel leaned into a party driven identity with rooftop pool gatherings, tropical aesthetics and nightlife energy designed to match the city’s image.
But the reality appears more complicated.
Tourism numbers and occupancy rates in Miami Beach have reportedly flattened, making it harder for the hotel to meet financial expectations. Meanwhile, vacant storefronts along Washington Avenue have continued to present challenges for the broader redevelopment effort.
Daniel Ciraldo, former executive director of the Miami Design Preservation League, described the original vision for the corridor.
“The goal was to bring in more retail,” Ciraldo said.
Instead, he added, “Goodtime ended up going the way of the party scene.”
According to the complaint, lenders have stepped in to cover operating expenses including payroll obligations and unpaid Florida sales taxes as losses mounted. The foreclosure action follows earlier legal friction between lenders and developers as both sides attempted to negotiate control of the property.
Another legal dispute reported by The Real Deal claims developers including Dreamscape and investor Michael Fascitelli were responsible for at least $10 million tied to operational losses but did not pay. In response, the developers argued the lender was attempting to take advantage of what they described as a drafting mistake in the loan agreement that expanded their financial exposure.
Court filings state the original loan could reach $164 million before later being reduced to $152 million. Lenders claim about $149.3 million remains unpaid, not including interest or additional costs.
Attorneys connected to the case either declined comment or did not respond to media inquiries.
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