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Canyon Capital Provides $157 Million Construction Loan for SLS Brickell Hotel & Residences

by Scott Reid

MIAMI — Canyon Capital Realty Advisors has provided a $157 million senior construction loan to a joint venture between the Related Group of Florida and SBE Hotel Group to finance the development of the SLS Brickell Hotel & Residences. The 54-story, luxury mixed-use tower consists of a 124-room SLS-branded hotel and 453 SLS-branded residential condominiums located above the hotel.

The hotel will include ground-floor restaurants from renowned chefs, including Michael’s by Michael Schwartz and The Bazaar by Jose Andres. The prices of the condominiums range from $400 to $500 per square foot, according to the sales office’s website.

“Our hospitality expertise played a critical role in the borrower’s decision to work with us,” says Ronald Muzii Jr., the South Florida-based senior director of Canyon Capital Realty. “Related knew we were an experienced condominium construction lender, but SBE knew that Canyon had extensive nationwide hotel experience as well, which would be crucial in getting this deal done.”

The mixed-use tower, which will open in fall 2016, features amenities such as property-wide Wi-Fi in all common areas and residences; multilingual staff; 24-hour valet parking and security service; as well as in-room dining services. The residences are currently sold out with a waitlist.

This transaction marks Canyon Capital Realty’s 13th investment in Florida in the last four years. Canyon’s current portfolio of loans in the Miami submarket of Brickell includes a $123.6 million senior construction loan made in October 2014 for Echo Brickell, a 57-story luxury residential condominium development, and a $28 million construction loan made in November 2013 for BrickellHouse, a 46-story, 374-unit luxury condominium property.

Canyon Capital Realty’s current portfolio of hospitality transactions nationwide includes the W Austin Hotel & Residences in Austin; the 1,070-room Washington Hilton in Washington, DC; and the 135-room Hotel Icon Autograph Collection in Houston.

Previous Canyon Capital Realty transactions that have been realized include the Turnberry Isle Miami Autograph Collection in Aventura, Florida; Hyatt French Quarter in New Orleans; and W Hoboken in Hoboken, New Jersey.

Canyon Capital Realty is the real estate direct investing arm of Canyon Partners LLC, founded in 1990 and headquartered in Los Angeles. The firm has invested more than $5.2 billion in more than 207 commercial real estate and mortgage transactions with a total capitalization of $13.9 billion through its real estate investment platforms.

— Scott Reid

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