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.

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.