The six-story Hillsboro Beach Resort at 1159 Hillsboro Mile, an 81-room oceanfront property finished in 2021, is now on the clock. A foreclosure auction is scheduled for July 16 after a Broward judge entered a final judgment in April that tacked on interest and lender advances to a 2022 $26 million loan. If the sale goes forward, control of the boutique resort would shift to the lender unless the owners manage to cure the debt in time. For now, the resort is still open while the legal drama plays out, with nearby businesses and seasonal guests keeping a close eye on the calendar.
Judge Locks In Sale Date After Final Judgment
A Broward County judge entered a final foreclosure judgment in April against the ownership entities tied to the resort, and the sale is set for July 16, according to The Real Deal. An affiliate of New York lender Emerald Creek Capital filed the foreclosure lawsuit in February, per the same reporting. The judgment rolls in accrued interest and fees, meaning the owners now face a larger tab if they want to stave off the auction.
Loan Timeline, Tax Trouble And Growing Advances
An affiliate of Emerald Creek is accused of originating a three-year, floating-rate $26 million loan in 2022 and says the borrowers first defaulted in March 2024 after missing real estate tax payments, Bisnow reports. The lender alleges it advanced roughly $731,000 to cover those tax bills and later about $2.2 million more in protective advances, and that the loan matured in August 2025 with a forbearance agreement that expired on January 1 without repayment. According to the complaint, that chain of events left the ownership entities unable to refinance before interest and fees began piling up.
BH3 Principals, Sonder’s Collapse And Refinancing Woes
The resort’s ownership entities are controlled by BH3 Management principals Daniel Lebensohn and Gregory Freedman, although BH3 itself is not named as a defendant in the foreclosure case, according to Commercial Observer. The property had been operated by short-term rental company Sonder until that operator’s Chapter 7 filing last year, and a spokesperson for the owners told other outlets that rising interest rates and Sonder’s collapse made refinancing more difficult, as reported by The Real Deal. Industry coverage notes that BH3 has other large South Florida projects in its pipeline, which could complicate any quick workout with lenders.
How A Foreclosure Auction Would Play Out
Under Florida Legislature rules on judicial foreclosure, a final judgment allows the court to direct the clerk to sell the property at public auction within a set statutory window. The Broward clerk conducts those sales electronically through its RealForeclose portal, according to guidance at BrowardClerk.org. If the owners can pay off the judgment amount or strike a deal with the lender before the clerk actually conducts the sale, the auction can be avoided. Otherwise, the lender can bid to take title, and any surplus proceeds are handled through the clerk’s registry. For employees and neighbors, that typically means a change in ownership paperwork more than an instant shutdown, with day-to-day operations often continuing until a new owner or a court-appointed receiver steps in.
The foreclosure auction is currently scheduled for July 16, and any changes will show up on court dockets and the clerk’s online sale portal. Representatives for the ownership entities and for Emerald Creek did not immediately respond to requests for comment, Commercial Observer previously reported. We will continue to track new filings and updates on the clerk’s calendar as the sale date approaches.
