Hotel’s distressed German loan purchased

Investment firm Madison Capital Management bought a $45-million B-note
loan secured by the W South Beach Hotel & Residences from
distressed German real estate financier Hypo Real Estate Capital Corp. The W South Beach Hotel &
Residences, now under construction at 2201 Collins Avenue, is scheduled
to open early next year. The 419-unit project will operate as a hotel
with owners being allowed to rent out their units. Bungalow and
penthouse units, from studios to three bedrooms, are priced from
$700,000 to more than $5 million.