Developer Michael Shvo is no longer involved in the Raleigh Miami Beach, the trophy asset he planned to redevelop into a luxury condo and hotel project.
New York-based Nahla Capital paid about $270 million for the three-acre property at 1775, 1757 and 1751 Collins Avenue, sources confirmed to The Real Deal. Bloomberg first reported the sale. Nahla, a private equity firm with $2 billion in assets under management, won a bid to purchase the project this summer, though Shvo had a right of first refusal and was reportedly working on raising new funds to pay off his partners and the debt backing the property.
The sale largely marks Shvo’s exit from the Miami Beach market, where he made a splash when he and his partners, Deutsche Finance America and a consortium of German pension funds, paid $243 million for the Raleigh assemblage in 2019, which includes the Richmond and South Seas hotels.
Shvo hired Peter Marino and Kobi Karp Architecture & Interior Design to design the Raleigh. The developer gutted the original buildings and secured approval for a 17-story luxury condo tower on the beachfront site. The project includes 44 luxury condos, a private members’ club and a hotel component. The Raleigh, an iconic Art Deco hotel known for its pool, was designed by L. Murray Dixon.
Most presales were in the $5,000-plus per square foot range, though the Wall Street Journal reported that a unit was under contract for nearly $8,500 per square foot. The Raleigh struggled to compete with Witkoff and Monroe Capital’s nearby Auberge-branded condo and hotel redevelopment of the Shore Club.
Last summer, Shvo cut ties with Official, the former Side-backed firm co-founded by Oren and Tal Alexander, after the Alexander brothers faced allegations of rape and sexual assault. Official was previously handling sales of the Raleigh. One Sotheby’s International Realty’s Anna Sherrill took over sales.
In 2023, the partners secured a $190 million refinancing originated by BH3 Management, and the firm had repeatedly extended the maturity date for the loan. A spokesperson for BH3 said that the loan was paid off in connection with this sale.
A spokesperson for the Raleigh said that the partnership “has chosen to sell the property to Nahla” following its repositioning of the project.
Newmark’s Adam Spies and Marcella Fasulo arranged the sale.
In September, Shvo sold his Alton Road assemblage, where he planned a luxury office and apartment project, to Infinity Collective via a deed-in-lieu-of-foreclosure.
Shvo still owns a portion of the development for his One Soundscape Park office project at 1665 and 1667 Washington Avenue in Miami Beach.
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