Joint Venture Expands Beachfront Footprint with Acquisition of Two Hotels in Miami Beach for $139.9M
MIAMI BEACH, FLA. — A joint venture between SHVO, Bilgili Group and Deutsche Finance Group (DFG) has acquired the Richmond Hotel, Richmond Apartments and South Seas Hotel for a total of $139.9 million.
The companies purchased South Seas Hotel from Majestic Hotel Corp. for $52 million. Along with direct access to the beach, the hotel offers amenities such as a swimming pool, poolside café and bar, business center, complimentary breakfast and concierge service. South Seas is located at 1751 Collins Ave., directly next to Richmond Hotel.
Included in the $87.9 million Richmond Hotel sale was Richmond Apartments, an 18-unit apartment complex located at 1757 James Ave., one block from the two hotels, and the apartment’s parking lot. The joint venture bought Richmond Hotel, which has been family owned and operated since 1941, from Patti and Allan Herbert. The hotel is located at 1757 Collins Ave., directly next door to The Raleigh, which the joint venture acquired in February for $103 million.
Lotus Capital Partners arranged a $100 million acquisition loan on behalf of the buyers from California-based Acore Capital for the purchase of Richmond and South Seas.
These purchases mark the fourth and fifth purchases between SHVO, Bilgili Group and DFG.
The joint venture 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.
Art deco architect L. Murray Dixon designed all three hotels, which span three acres and include 217 feet of beachfront.
SHVO was founded by New York City-based developer Michael Shvo in 2004. Since then, SHVO has been involved in the envisioning, planning, sales and marketing of more than $15 billion of real estate, spanning more than 80 million square feet.
Bilgili Group is a Turkish real estate conglomerate that was founded in 2011. Along with its independently managed real estate arm, BLG Capital, the company has more than $3 billion of assets under management. The companies work with companies such as Marriott, Soho House, The Peninsula, Aman Resorts and Dogus Group.
Munich-based DFG is a global real estate investment management firm established in 2005 with more than $4 billion of assets under management. DFG has offices in London, Denver, Zurich and Luxembourg.
— Alex Tostado