Costa Hollywood Beach Resort's unsold units were slated for a bankruptcy auction and generated plenty of interest but no qualified bidders, more than likely because the coronavirus pandemic put the hospitality industry in a historic nosedive.

777 N. Ocean Drive LLC, the lender on the project that sought to foreclosure on the development team after it stopped paying, is in line to buy the unsold units under its $43 million stalking-horse bid. The lender, an affiliate of New York-based private equity firm Madison Realty Capital, offered a credit bid, which counts against the overdue loan.

U.S. Bankruptcy Judge A. Jay Cristol of the Southern District of Florida set a hearing on a final sale for Aug. 26. "In this market, especially after COVID hit, it's a little bit harder to take out a secured lender that's coming in with a credit bid of $43 million. It's a lot of money," said debtor's attorney James Moon.