Raleigh
South Beach, Miami
$100,000,000
Loan Amount
$1 Million
Per Key Basis
3.1 Acre in:
Prime South Beach
Acquisition & Pre-Development: Financing
Lotus arranged a $100 million pre-development and acquisition loan for a proposed luxury hotel and residential project on 3.1 contiguous acres along Collins Avenue - arguably one of the best sites in Miami Beach.
Challenges:
Our Client’s development plan originally consisted of redeveloping the iconic 103-key Raleigh Hotel, which was purchased at a basis of $1 million per Key with an all-in basis to complete of $2 million per Key. Our Client later recognized an opportunity to acquire the adjacent 3-star Richmond and South Seas Hotels, allowing them to expand the development onto the neighboring sites, which could be developed into a 200-foot luxury condominium tower. This expansion involved a maze of complex zoning and entitlement issues associated with redeveloping a historic landmark site.
Solutions:
Lotus successfully helped our client navigate through the complexities of zoning and entitlement nuances, and designed a loan structure so that our client could continue their development work on one asset, and continue to run and wind down operations at the two other sites. Lotus also guided the Client through the complexities of creating a PropCo / Opco structure. Lotus was able to close the deal within 30 days of signing a term sheet with the lender, at an all-in acquisition basis of $293 million for the entire site.