A Los Angeles-based real estate investment firm has taken control of one of South Beach's most high-profile hospitality ventures for the symbolic price of $100 — the culmination of a foreclosure process that exposed the financial fragility behind the glittering facade of Miami Beach's pandemic-era hotel boom.

CIM Group claimed ownership of the Goodtime Hotel at 601 Washington Avenue in Miami Beach on July 1, winning a foreclosure auction through a credit bid after having secured a $204.7 million foreclosure judgment against the property in May. Because CIM itself held the debt on the hotel — a $152 million loan it had originally extended to the project — it was able to apply that outstanding balance toward the purchase rather than pay cash, resulting in the nominal $100 auction price.

The 266-room, seven-story hotel opened in 2021 amid considerable fanfare, riding the wave of Miami's post-lockdown hospitality surge. The project carried serious star power: Grammy-winning musician Pharrell Williams and nightlife and restaurant impresario David Grutman were both involved as partners and became the public faces of the brand. The Goodtime positioned itself as a destination in its own right, blending a boutique hotel concept with the kind of food and beverage programming that Grutman had long made his signature across Miami's entertainment landscape.

Despite that high-profile launch, the hotel struggled to sustain financial stability in the years that followed. The exact operational details behind its difficulties have not been fully disclosed, but the foreclosure judgment — totaling more than $204 million — reflects the depth of the debt the property accumulated relative to its performance.

With the auction concluded, CIM Group transitions from lender to outright owner of the asset. The firm, which manages real estate and infrastructure investments across major U.S. markets, now controls a prominent Washington Avenue address at a moment when Miami Beach continues to navigate its own complicated relationship with its hotel and nightlife corridor.

What becomes of the Goodtime Hotel brand, its management structure, and its relationship to Grutman's broader hospitality network remains to be seen. CIM has not publicly announced plans for the property.

The original reporting on this story was published by The Real Deal Miami.