The JV by SHVO, Bilgili Group and Deutsche Finance Buys Two Hotels in Miami

Main Photo: The Richmond Hotel

Date: August 2019

Location: Miami Beach, Florida, USA

Names: The South Seas Hotel at 1751 Collins Avenue and the Richmond Hotel at 1757 Collins Avenue.

No. of Keys: The South Seas: 140  The Richmond: 92

Seller: The group purchased the Richmond properties, including the Richmond Apartments at 1757 James Avenue and the Richmond Parking Lot at 1832 James Avenue, for $87,850,000 from Patti and Allan Herbert and the South Seas Hotel for $52m from Majestic Hotel Corp.

Renowned art deco architect L. Murray Dixon designed all three oceanfront properties, which together comprise three acres with 217 linear feet of beachfront.

Buyer: The joint venture by SHVO, Bilgili Group and Deutsche Finance, which owns the iconic Raleigh Hotel in Miami Beach, announced the purchase of the two adjacent properties.

The group has invested nearly a quarter of a billion dollars in Miami Beach this year. In February, the group purchased the Raleigh Hotel, an icon of South Beach art-deco known especially for its ornate beach-side swimming pool, for $103 million. In today’s transactions, Lotus Capital Partners arranged a $100 million acquisition loan from California-based Acore Capital.

These purchases mark the fourth and fifth joint ventures between SHVO, Bilgili Group and Deutsche Finance. In addition to purchasing the historic Raleigh Hotel, the group purchased 9200 Wilshire in Beverly Hills earlier this year, and in 2018 acquired the office portion of 685 Fifth Avenue in Manhattan, which will become luxury Mandarin Oriental Residences.

Founded in 2004, SHVO has been involved in the envisioning, planning, sales and marketing of more than $15 billion of prime real estate, spanning more than 80 million square feet. Based in New York City, SHVO was founded in 2004 by Michael Shvo, who remains its Chairman and CEO.

Bilgili Group is a leading real estate focused Turkish conglomerate and BLG Capital is its independently managed private equity real estate arm founded in 2011. BLG Capital’s investment and asset management team has raised and invested more than $500 million equity in Turkey since 2011 and the two firms have over $3 billion of assets under management combined. The firms have a long track record in real estate investments in different asset classes such as hospitality, student housing, city-centre mixed-use projects, office, high end residential and other commercial properties.

Backed by its institutional investor base, the companies aim to integrate new and unique concepts into the markets they operate in and also execute strategic partnerships with leading global brands such as Marriott, Soho House, The Peninsula, Aman Resorts and Dogus Group. The investment portfolio includes W Istanbul Hotel, Soho House Istanbul, Galataport, The Peninsula Istanbul, and Aman Bodrum among other high end residential and student housing projects.

Deutsche Finance Group (DFG) is a global real estate investment management firm established in 2005 with over $4.0 billion of assets under management and headquartered in Munich with offices in London, Denver, Zurich, and Luxembourg. Deutsche Finance America (DFA) is a subsidiary company established in 2018 to source, structure and asset manage direct real estate investments in the United States on behalf of DFG’s institutional client accounts and managed funds. DFA has closed on eight deals totalling over $600 million of equity in the first 12 months of operations.

Price: Just under US$140m

Price per Key: US$603,448

THPT Comment: Three serious players have teamed up to acquire this stretch of Miami Beach…and further afield….looks like a strong partnership.

First Seen: SHVO Press Release

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