HFZ Leans on Carlos Slim To Refinance South Beach Hotel
HFZ Capital has reportedly landed $185M from Mexico's Banco Inbursa in a successful refinancing of the Shore Club, a Miami hotel it bought for $175M in late 2013. The South Beach property is undergoing a partial condo conversion that will transform the 389-key lodging into a mix of 85 residential units and 100 hotel rooms. Mortgage Observer, which first reported the deal, says that Carlton Group Chairman Howard Michaels financed the transaction.
The Shore Club nearly went into a foreclosure sale in the summer of 2013 over debts totaling $164M. Its sale was the priciest South Florida hotel swap that year. In an earlier bout of ignominy, oft-embattled rap mogul Suge Knight was shot in 2005 at a party held at the then-trendy hangout and went on to sue the Shore Club and host Kanye West for providing inadequate security.
