This Week's South Florida Deal Sheet: Shvo Nabs $190M Loan For Redeveloping The Raleigh
New York developer Michael Shvo secured $190M in financing for his plan to restore the Raleigh Hotel in Miami Beach and to build an additional 17-story oceanfront tower on the site.
BH3, a vertically integrated real estate investment firm with offices in Florida, New York and Colorado, provided the loan through a fund called BH3 Debt Opportunity Fund II L.P.
The loan brings the total investment into the 3-acre property at 1775 Collins Ave. to around $1B, according to the release, including an equity contribution of over $300M. Shvo is developing the property in a partnership with Deutsche Finance America and a group of German institutional pension funds.
Walker & Dunlop’s New York capital markets team arranged the financing, which pays off and replaces a previous loan from Acore Capital that was used to acquire the property in 2019 for $243M, The Real Deal reported.
Architect Peter Marino, who's designed shops for Chanel and Louis Vuitton, and Miami-based Kobi Karp Architecture designed the project, which will include a 60-suite hotel managed by Rosewood Hotels & Resorts in a restored historic Raleigh Hotel and a new tower with branded residences and a private members club with Michelin-starred dining concepts.
Construction has already begun and the project is expected to deliver in 2026.
SALES
Greystar, the South Carolina-based multifamily giant, paid $56.1M for a garden-style apartment property in Coral Springs, the Commercial Observer reported. The sellers were Starwood Capital and PGIM Real Estate, the asset management arm of Prudential Financial. The property, called Park Place at Turtle Run by Arium and located at 3600 Terrapin Lane, consists of 350 units spread across 22 three-story buildings that were built in 1989 on 15.8 acres. As part of the acquisition, Greystar assumed a $102M mortgage issued by Bank of America that is now held by Newmark with an outstanding debt of $35M, per CO.
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The 253-room Sheraton Suites Fort Lauderdale, one of the closest hotels to Inter Miami’s DRV PNK Stadium, sold to a group of investors for $28M, according to the South Florida Business Journal. Cypress Creek Hotel LLC, managed by Benjamin Mallah of Largo-based Equity Partners Management, sold the property to a partnership of five entities: ABH Corp. of New York, managed by Arif Butt; Kentucky Zinc LLC, managed by Fahr Juneja; NC Capital LLC, managed by Naveed Chowhan; Mirab LLC, managed by Muhammad Wasim Sajid; and Rayann LLC, managed by Abdul Jabbar. Dade County Federal Credit Union provided a $19.5M mortgage to the buyers as part of the acquisition. Davie-based Royal Oaks Hospitality will manage the hotel.
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Miami-based investment and development firm Integra Investments paid $14.9M for the 165K SF Lantana Village Square and plans to leverage provisions of the Live Local Act to construct a mixed-use workforce housing community on part of the site, according to a release. Miami-based Saglo Development Corp. was the seller and Bradesco Bank in Coral Gables provided acquisition financing. The nearly 19-acre shopping center, located at 1001 South Dixie Highway, includes a former Kmart that Integra plans to tear down and replace with apartments, although the developer did not say which provisions of the Live Local Act it planned to take advantage of for the project. Current retail tenants at the rest of the site include Winn-Dixie, Subway and West Marine.
CONSTRUCTION AND DEVELOPMENT
David Martin’s Miami-based Terra Group completed construction of a market-rate apartment complex in West Hialeah called Natura Gardens, the company announced. The 23-acre development includes 460 garden-style apartments across 12 buildings located on Northwest 170th Street between I-75 and Florida’s Turnpike.
Leasing is underway for the property’s one- to three-bedroom apartments, which range between 727 SF and 1,603 SF with rents from $2K to $3,350 per month. Amenities at the development include a resort-style pool and spa, an outdoor grilling station, a fitness center, a business center with coworking spaces, a children’s playground and residents-only dog park.
Terra broke ground on the development in February 2021 and secured a $64.8M construction loan in April 2021 from Bank OZK, according to Profile Miami.
FINANCING
Miami-based development firm The Graham Cos. closed on a $70M mortgage loan from Empower Annuity Insurance Co. for two Miami Lakes apartment properties, Commercial Observer reports. The 10-year mortgage covers Fountain House at 6915 Main St. and Crescent House at 6460 Main St., which have a collective total of 502 units. Graham Cos. previously developed a 3,000-acre master-planned community in Miami Lakes and is the largest landowner in the area. Jeff Robertson, a senior vice president and managing director at Northmarq’s Fort Lauderdale debt and equity office, arranged the financing.
LEASES
Ultimate Kronos Group completed a long-term lease renewal and expansion totaling 155K SF at the Weston Pointe office park at 2400 North Commerce Parkway, according to a release. UKG renewed its lease for 141K SF and took an additional 14K SF in the deal. Separate teams from Cushman & Wakefield represented the tenant and the landlord, an institutional client of New York Life Real Estate Investors. The four-building business park is now 97% leased with a 7.5-year weighted average lease term, according to the release. UKG, which offers workforce management and payroll solutions in the cloud, was formed in 2020 after a merger between Ultimate Software Group Inc. and Kronos Inc. It operates under a dual headquarters model, with its primary locations in Weston and Lowell, Massachusetts.
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Related Group and Boston-based Rockpoint secured the first retail tenants for their Manor at Miramar mixed-use project at 1 Main St. in Broward County, according to a release. Crema Gourmet Espresso Bar leased 2,700 SF, the boutique fitness studio SWEAT440 leased 3,200 SF and The Spot Barbershop signed on for 1,500 SF. JLL Senior Vice President Jonathan Rosen represented the landlord in the lease negotiations and is leading leasing efforts for the development's remaining 17K SF of ground-floor retail. The eight-story Manor at Miramar is currently under construction and includes 393 apartments ranging from studios to three-bedroom units with tenant move-ins expected to begin in December.
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Badcock’s Economy Furniture Store has renewed its leases for nearly 123K SF across two buildings in Broward County. The furniture retailer will continue to occupy 36K SF at 2101 Park Central Blvd. and 87K SF at 1521 West Copans Road, according to a release. Colliers Senior Vice President Lauren Pace, who just joined the firm in October, represented Badcock's in the deal. The warehouses are owned by Prologis, which agreed to redesign the buildings' layout.
