Facing a maturity date next month, a $188 million commercial mortgage-backed securities loan tied to the St. Regis Bal Harbour Resort is being transferred to special servicing, according to Morningstar.
The move comes despite the hotel’s owner, Qatari firm Al Rayyan Tourism Investment Company (ARTIC), being current on the mortgage and having an option to extend the maturity date. The property is at 9703 Collins Avenue in Bal Harbour.
The lender, San Francisco-based Column, is reviewing a request by Al Rayyan, led by CEO Tarek El Sayed, for an extension, Morningstar states.
Though Al Rayyan maintained an above breakeven debt service coverage ratio, its 2024 net cash flow reportedly fell to about half of 2021 levels, potentially triggering tighter scrutiny from bondholders, the report shows.
Al Rayyan, whose chairman Sheikh Faisal Bin Qassim Al Thani is a member of Qatar’s ruling Al Thani family, obtained the loan in 2021, records show. The firm used the loan proceeds to pull out $44.5 million in equity and pay off a previous $132 million mortgage that had been acquired by London-based Reuben Brothers, led by billionaire siblings David and Simon Reuben.
St. Regis Bal Harbour is a condo-hotel completed in 2011 consisting of three 27-story towers with 192 hotel rooms and 205 condos. Al Rayyan acquired the hotel portion, which is housed in the complex’s center tower, for $213 million in 2014 from billionaire Barry Sternlicht’s Miami Beach-based Starwood Capital Group.
Al Rayyan also invested $40 million in renovations, loan filings show. Last year, the St. Regis Bal Harbour Residences condo association sued Al Rayyan, alleging building defects, health and safety issues and financial mismanagement. The association is seeking a comprehensive assessment of the building and remediation for a laundry list of alleged issues in the complex, the pending complaint in Miami-Dade Circuit Court states.
Also in 2024, Al Rayan sold the ownership entity for the W Miami, a 50-story, 148-key hotel in Miami’s Brickell neighborhood, to a joint venture between Aventura-based BH Group and Süzer Group. The price was not disclosed.
