Major Real Estate Investment Firms Face Accusations with Criminal Implications

U.S. Developer Vows Vigorous Litigation & Project Completion
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MIAMI, July 10, 2025 (GLOBE NEWSWIRE) -- Two well-known U.S. real estate investment firms are accused of conspiracy, civil misconduct, predatory lending, and other charges detailed in a $67-Million lawsuit filed in the Eleventh Judicial Circuit Court of Miami Dade County, Florida.

Silverstein Capital Partners, one of the financiers of the World Trade Center Campus, and New York-based Monarch Alternative Capital are named in the complaint filed by affiliates of Miami’s prestigious Royal Palm Companies real estate development firm.

Skyscraper Sabotage

The crux of the lawsuit is a dispute over a $32-Million loan for construction of the highly-acclaimed, $700-Million, Legacy Miami Worldcenter skyscraper, in downtown Miami, which is being developed by affiliates of Royal Palm Companies.

Conspiracy

The complaint includes a myriad of credible accusations that detail the investment firms’ malicious conspiracy to sabotage the Legacy project.

According to court documents, Legacy’s developer and its CEO, Daniel Kodsi, accuse Silverstein Capital Partners and Monarch Alternative Capital of hatching a plan to foreclose on the Legacy Miami Worldcenter project – just as the loan was about to be repaid. 

Silverstein initially issued the loan in 2022.

In the eleventh hour, in June 2025, the outstanding mortgage note was secretly sold by Silverstein to a “dummy corporation” created by Monarch for the sole purpose to sue affiliates of Royal Palm Companies, according to Kodsi.

Retaliation

While Monarch was never involved in the Legacy project, it was previously involved in another project with Royal Palm Companies in 2024, according to Kodsi.

It was at the Coco Beach, Puerto Rico Resort and Golf Club, which was, incidentally, owned by Donald Trump until 2017.

In that project, Kodsi accuses Monarch of financial improprieties, including misappropriation of funds, according to the complaint.

Kodsi says Monarch was confronted with a suspicious $10-Million cash displacement.

The money was repaid, says Kodsi.

“None too happy with that settlement,” says Kodsi, “Monarch vowed to retaliate.”

“Buying the note provided Monarch with the opportunity of revenge,” explains Kodsi.

“Monarch seeks to foreclose on Legacy and seize the property and the project, which is at the core of the alleged conspiracy,” says Kodsi’s attorney, Joseph Pardo of Miami Beach.

Illegal Interest Rates

According to court documents, Silverstein Capital Partners and Monarch Alternative Capital are also accused of tortious interference, unfair and deceptive trade practices, and for attempting to apply criminal usurious interest rates in excess of 45 percent on the construction loan.

With the alleged interest, the total amount would be $67-Million.

“According to Florida law, it is a felony to charge interest rates of more than 45 percent on loans of more than $500,000,” explains Pardo.

Deeper Dive Chronology

● August 2021: Royal Palm Companies unveils plans to build the first-of-its-kind, $700-Million, 50-story, Legacy condominium, hotel, and health and wellness center.

● Legacy is being built at the $6-Billion, 27-acre Miami Worldcenter, which is America’s second-largest real estate development.

● December 2021: Silverstein Capital Partners announces it is issuing Florida’s biggest construction loan of $340-Million for the Legacy project, according to public records.

● First round of funding totaled $32-Million, according to Kodsi.

● March 2022: Construction crews break ground on the project.

● March 2024: Construction of 16 floors of the tower are completed.

Cash Complications

● At about the same time, Silverstein Capital Partners states it is experiencing cash flow problems, according to the lawsuit.

● Silverstein states it needs to concentrate on other, less expensive, projects and it needs to extract itself from the Legacy project, according to court records.

● Unable to meet its financial obligations, Silverstein abruptly ends all funding of the Legacy project.

● It is alleged that Silverstein violated its contractual agreement with the Legacy project, according to the lawsuit.

● Silverstein allegedly tells Kodsi, “You need to find a Plan-B.”

● Construction comes to a screeching halt.

Search for a New Lender

● 2024: Amidst soaring interest rates, spiraling building materials’ costs, and a national construction worker shortage, Kodsi starts searching for another lender.

● Mid-May 2025: Kodsi says he solidifies a Term Sheet agreement with a new lender for a $51.7-Million loan, according to court documents.

● Shortly thereafter, Kodsi says he contacts Silverstein and advises the firm that he will be working with another lender and wants to pay-off the entire balance of the Legacy loan.

Mortgage Note

● Early June 2025: Kodsi says he receives a letter from a company unfamiliar to him; known as, Legacy Lender Holdings.

● The letter advises that Legacy Lender Holdings has assumed the “mortgage note” from Silverstein, according to Kodsi.

● The letter states Legacy Lender Holdings is proceeding with foreclosure, unless the balance due on the Legacy loan is paid, plus more than 45 percent in interest and other fees.

● The total debt would be more than $67-Million.

Florida Interest Rate Law

“The interest rate is intentionally disguised as a multitude of junk fees,” says attorney Pardo.

“In the end, when you lift the veil and you do the math, it adds up to an outrageous business practice and clearly illegal interest rates of more than 45 percent,” says Pardo.

“According to the loan agreement, the principle is $32-Million, plus 8.25 percent interest,” says Kodsi.

Tortious Interference

According to Kodsi, “Silverstein presumably shared confidential information with others about the pending deal that we had with the new lender.”

Rather than seek a potential final settlement of the outstanding amount of the construction loan, “Silverstein secretly sold the mortgage note to Legacy Lender Holdings for an undisclosed amount,” explains Pardo.

The note was sold to a “dummy corporation,” Legacy Lender Holdings, which was allegedly formed by Monarch, according to Pardo.

Forecasting an uncontrollable dispute, the new lender vanished.

Vengeance via Dummy Corporation

On June 4, 2025, a few days after Kodsi informs Silverstein that he will be working with a new lender, Legacy Lender Holdings is formed as a Delaware Corporation, according to public records.

“It is apparent that Legacy Lender was created for the sole purpose of suing Royal Palm Companies; to collect on the outstanding loan debt with lopped-on, illegally-high interest rates; to force the developer into foreclosure; to seize the land and the project it sits on; and to attempt to wipe-out Kodsi and his company,” says Pardo.

Foreclosure Law Suit

● July 2, 2025: Kodsi is served with a foreclosure lawsuit demanding full payment of the outstanding loan balance, plus newly-imposed, allegedly illegal, interest rates, according to Pardo.

● The plaintiff is the newly-concocted Legacy Lending Holdings.

Counter Claim

● July 7, 2025: Kodsi files a counterclaim lawsuit.

● Kodsi accuses Legacy Lending Holdings, Monarch, and Silverstein of conspiracy and the other aforementioned charges.

Retribution

“Monarch’s strategy is to destroy not to build,” says Kodsi. “For some unknown reason Monarch found Silverstein to be an ally.”

“Monarch has no interest in developing the Miami community,” says Kodsi.

“Monarch has no interest in paving streets and sidewalks or creating greenways. Monarch has no interest in creating jobs. For Monarch, it is all about retaliation and greed,” says Kodsi.

“All of this is an attempt at damaging one of Miami’s most-anticipated and transformative projects,” says Kodsi.

“They knew we were about to repay the loan. They knew we were about to restart construction. They knew we were about to start hiring people,” says Kodsi.

“So, they devised this nefarious retaliatory scheme, all because they got caught with their hands in the cookie jar and they were told to put it back,” explains Pardo.

Monarch Vultures & Repeat Offender

This is not the first-time Monarch has been accused of conniving a reprehensible takeover attempt of a major real estate development.

According to reports in the Minneapolis Star Tribune, in 2021, during the Pandemic; following the riots associated with the death of George Floyd, developers sought to save the beloved Dayton’s department store building in the city’s downtown. The plan was to transform it into office suites.

Dayton’s was a Minneapolis landmark since 1902.

One-hundred-nineteen years later, the team of developers trying to save the Dayton building were delinquent on loan payments due to “obstacles” created by “current events.”

According to news reports, Monarch “smelled” distress and swooped-in.

Monarch bought the loan and then sought to foreclose on the property forcing the developers to buy back their loan for more than its original amount or abandon the project.

The developers sued Monarch.

A judge in Hennepin County, Minnesota issued a 30-day restraining order preventing the self-described “opportunistic fund” from foreclosing and auctioning off pieces of Dayton’s.

Describing Monarch as “Vultures,” Minnesota’s Governor, its U.S. Senators, and Congresspeople, supported Dayton’s developers and helped secure financing from another lender.

According to court documents, Monarch was defeated in its foreclosure efforts.

The case was dismissed with prejudice by mutual agreement, according to public documents.

This indicates a likely settlement.

Kodsi says, “The disturbing Minneapolis incident is one of many involving Monarch nationwide.”

“The company has a history of malicious conduct, which has resurfaced 1,500 miles away from Minneapolis here in Miami where the Worldcenter project is revered by many. News of Monarch’s attempted real estate coup has ignited a blizzard of outrage expressed in emails, text messages, and on social media.”

Kodsi adds, “The day may soon come when Monarch’s malice and misconduct will be on full display in a Miami Dade County court of law.”

Millions of Dollars, American Values

Kodsi stresses, “Monarch’s conduct not only puts our company at risk, but it also jeopardizes tens-of-millions of dollars of customer deposits.”

He continues, “People from across the U.S. and from dozens of other countries have bought units or invested in the project. The impact is immense.”

“This malicious maneuvering goes against the grain of the trusted American way of doing business,” says Kodsi.

“Our mission remains focused on completing the Legacy Miami Worldcenter and protecting the interests of everyone who has invested in its vision and of helping to improve downtown Miami.”

“Ethical business dealings, honesty, and hard work are the values we embrace and practice at Royal Palm Companies,” says Kodsi.

“We got mixed-up with the wrong people, who need to be held accountable for their misconduct.”

Response to Allegations

● Kodsi's firm has paid all 2023 property taxes.

● Firm has asked for a reassessment of 2024 property taxes.

● Firm says, the taxes are not delinquent.

● Firm says, all loan repayments are up to date as of May 2025.

According to Kodsi, $2.9-Million of cash belonging to the affiliates of Royal Palm Companies is sitting in Silverstein’s bank account.  Kodsi says he requested the money be applied to any outstanding loan payments but Silverstein refused to do so.

Legacy Project

● August 2021: The $700-Million Legacy at Miami Worldcenter project is unveiled.

● Legacy completed a $160-Million sell-out of available residences in less than 12 months and before groundbreaking, according to public records.

● Legacy receives national attention for ingenuity and urban design.

● Legacy's plans feature 310 micro-residential condominiums, 219 hotel rooms, and a 120,000 square foot health and wellness center.

● Legacy is part of the Miami Worldcenter development.

● It is composed of more than 20 residential and commercial high-rises, 10 city blocks of retail, restaurant, and entertainment venues.

● The Legacy project proposal intertwines the structure with greenways that enhance Miami Worldcenter and connect it with the neighboring Overtown community.

● Overtown is one of the most impoverished zip codes in America. It is sorely-lacking parks.

● Kodsi plans to tap-into the neighborhood’s potential workforce and train unskilled people for construction and service industry jobs.

About Royal Palm Companies

Royal Palm Companies’ multi-billion-dollar portfolio includes apartment complexes, luxury high-rise condominiums, single-family home communities, and hospitality properties.

Since 1991, the company has developed more than 50 projects in Miami, Fort Lauderdale, West Palm Beach, Central and Southwestern Florida, and along the state’s Space Coast.

Contact: Bryan Glazer | World Satellite Television News | 561-374-1365 | Bryan@TelevisionNews.net

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