Shore Club changes hands in $175M transaction

Miami /
Jan.January 03, 2014 12:00 PM

Ownership of the iconic Shore Club hotel in South Beach changed hands in a $175.3 million transaction, The Real Deal has learned.

New York-based Philips South Beach filed a special warranty deed transferring ownership of the 1901 Collins Avenue property to another New York company, Shore Club Property Owner, on Monday, according to Miami-Dade County records. The county recorded the deed on Tuesday.

The transaction was the most expensive involving a South Florida hotel in 2013.

Shore Club Property is managed by New York-based HFZ Capital Group, according to state corporate records. HFZ is a real estate development and investment firm founded nine years ago by Ziel Feldman. Calls to Feldman were not immediately returned.

Two mortgage assignments were filed concurrently with the deed. A $161 million loan from a group of lenders managed by Fortress Credit Corporation was assumed by Shore Club Property Owner. A second note totaling $12 million from the same group of lenders was also assigned to the company.

Those mortgages were obtained by Philips South Beach in June to resolve a lengthy foreclosure case. The company, managed by private real estate development and management firm Philips International, faced a June 25 online foreclosure auction of the property if it did not obtain new financing.

Philips International had a majority stake in the 309-room hotel. A source familiar with the transaction told The Real Deal on Friday that Philips also has a stake in the new ownership entity.

Hospitality operator Morgans Hotel Group handles guest operations at the Shore Club and has a minority interest of about seven percent in Philips South Beach, according to Securities and Exchange Commission filings. Morgans’ website currently offers nightly room rates starting at $319.

The company’s most recent quarterly report, filed in November, hinted at a potential management or ownership shakeup. Morgans “continues to operate the hotel pursuant to the management agreement, but no assurance can be provided that [it] will continue to do so,” the company said in the quarterly filing.

The Shore Club was constructed in 1938. The 2.7-acre property last sold for $8.8 million in 1997.


Related Articles

arrow_forward_ios
Ronny Finvarb with a rendering of 1790 Alton Road (GEK Architecture)
Ronny Finvarb plans boutique hotel on Alton Road site in Miami Beach
Ronny Finvarb plans boutique hotel on Alton Road site in Miami Beach
The hotel was built in 1940, with an addition constructed in 1958. (Shelborne)
Owners of historic Shelborne hotel in South Beach seek approval for renovation
Owners of historic Shelborne hotel in South Beach seek approval for renovation
PMG principals Kevin Maloney (middle), Ryan Shear (left) and Dan Kaplan with a rendering of Waldorf Astoria Miami (PMG, Muse Residences, Rendering via ArX Solutions)
Waldorf Astoria Miami, planned as the tallest resi tower south of Manhattan, launches sales
Waldorf Astoria Miami, planned as the tallest resi tower south of Manhattan, launches sales
A rendering of the the property at 3601 North Miami Avenue and HES Group CEO Francisco Arocha (Photos via HES, Francisco Arocha)
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
Midtown Miami Triptych dev site owner files for Chapter 11 amid foreclosure
HFZ's Ziel Feldman. (Getty, Shore Club)
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
HFZ faces lawsuit, unpaid tax bill for Shore Club South Beach hotel
2835 Tigertail Avenue with Jay Shah, Getzy Fellig and Sam Zalmanov 
Residence Inn Coconut Grove sells for $31M, to be converted to apartments
Residence Inn Coconut Grove sells for $31M, to be converted to apartments
An aerial photo of Boca Lago Golf & Country Club (Google Maps, iStock)
Boca Lago Golf & Country Club owner wins approval to build a hotel on the property
Boca Lago Golf & Country Club owner wins approval to build a hotel on the property
Westime owner Jean Simonian and Washington Park Hotel. (Facebook via Westime and Washington Park Hotel)
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...