A potential buyer has entered the ring at The Raleigh, a stalled condo and hotel project planned in Miami Beach.
New York-based Nahla Capital won a bid to purchase the property for about $275 million, Business Insider reported. Michael Shvo’s firm, New York-based Shvo, has the right of first refusal and is trying to match the offer.
Nahla recently completed The Rosewood Residences Beverly Hills. Rosewood is also set to brand the Raleigh project, which includes the restoration and renovation of the historic structures on the 3-acre property and a new, separate 17-story, oceanfront condo tower. Peter Marino is working with Kobi Karp Architecture & Interior Design on the planned development.
To retain control of the troubled project, Shvo would have to raise new money to pay off his partners, and he would likely have to secure new debt or extend his current loan, according to Business Insider.
Two years ago, Shvo, Deutsche Finance and a group of German institutional pension funds secured a $190 million refinancing for the loan backing the assemblage. The lender, Fort Lauderdale-based BH3, recently agreed to a three-month extension. The loan was set to expire this week.
The Raleigh was previously expected to be completed in 2026, but it’s been delayed. Sales have also lagged behind its competitors, which include Witkoff’s nearby Shore Club redevelopment, an Auberge Resorts-branded luxury condo and hotel project, sources told The Real Deal.
Last year, Shvo replaced its brokerage for the project. It replaced Official, the former Side-backed firm co-founded by Oren and Tal Alexander, with One Sotheby’s International Realty, as the Alexander brothers face allegations of rape and sexual assault.
Shvo and his partners paid a combined $243 million for the Raleigh, Richmond and South Seas in 2019. The Raleigh tower, an iconic Art Deco hotel, was gutted and remains a shell.
The planned boutique condo and hotel project is also expected to include a private members’ club abutting the iconic pool.
— Katherine Kallergis
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