Miami's Shore Club sells for $175 million

The Shore Club in South Beach has sold for just over $175 million to owners who plan changes at the 309-room hotel, reports the Miami Herald. New York City-based HFZ acquired the hotel with an affiliate of Fortress Investment Group. Philips International, a seller, will still be involved with the new ownership group.

“We have an extraordinary, once-in-a-lifetime opportunity to re-imagine and reposition a world-class property in a market that has seen continued demand for luxury properties,” said Ziel Feldman, founder and managing principal of HFZ Capital Group, in a press release this week.

"With ongoing demand from domestic and international buyers for prime South Beach properties and with Miami Beach's increasing global significance as a tourist destination, we expect the luxury residential and hospitality markets to continue their dynamic growth," added Nir Meir, principal and managing director of HFZ.

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Three years after the lender for the hotel’s mortgage started foreclosure proceedings, the hotel was scheduled for a foreclosure sale in June. But the joint venture agreed to refinance with a new lender the day before that planned sale, according to a regulatory filing by Morgans Hotel Group Co., which manages the hotel.

That new mortgage of more than $160 million as well as a second mortgage of $12 million were assigned to the buyer. The purchase closed in late December.

 

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