A behavioral health hospital property in West Palm Beach is headed to auction following a $10.64 million foreclosure judgment.

On September 9, Palm Beach County Circuit Court Judge Scott Kerner approved a consent judgment in favor of East West Bank, based in Pasadena, California.

The case involved Sunshine Holdings 2019 LLC, Sunview Medical Center LC, Intensive Specialty Hospital LLC, and Stephen Werdiger, tied to a loan with nearly $7.9 million in principal still outstanding, plus additional interest and fees.

The properties— a 50,154-square-foot hospital at 1041 45th Street and an 8,006-square-foot medical office at 4802 East Avenue—are slated for court auction on November 17.

Attorney Ronald M. Gaché, representing the borrowers, emphasized that the judgment was part of a larger settlement agreement. He added that the borrower intends to pay off the judgment before the auction date and will not appeal the ruling.

Court filings show this final judgment stems from a forbearance agreement that gave the borrowers until September 30 to make a “discounted payoff” to the bank. If that payment wasn’t made, the property would proceed to foreclosure auction in November.

The borrowers originally acquired the properties in 2020 for $11 million from the nonprofit Jerome Golden Center for Behavioral Health, which had closed its psychiatric hospital the year before. In 2021, East West Bank issued a $10.85 million mortgage, and the new owners began construction work on the site.

The foreclosure suit was filed in April 2024 after loan issues persisted. Sunshine Holdings 2019 LLC later sought Chapter 11 bankruptcy protection in New York in November 2024, but the court allowed East West Bank to move forward with foreclosure in June 2025.

Source: SFBJ