The Real Deal Miami

Marriott in downtown Miami boosts loan to $52M

Mortgage has passed through several banks
The lobby of the Courtyard by Marriott Downtown Miami hotel, from Marriott's website

The lobby of the Courtyard by Marriott downtown Miami hotel. (Credit: Marriott)

A Courtyard Marriott hotel in downtown Miami just refinanced and increased its mortgage, bringing the grand total to $52 million in financing.

The 13-story hotel, at 200 Southeast Second Avenue, was built in 1975 and has 233 rooms. It was recently renovated by its longtime owner, New York-based AVR Realty Co.

An affiliate of AVR has owned the hotel since 1987, according to Miami-Dade County property records. A sales price is not available. In 1997, the company took out a $7.2 million mortgage on the property from the Allied Capital Commercial Corp.

Allan Rose, CEO and owner of AVR Realty Co., in a 2011 interview

Allan Rose, CEO and owner of AVR Realty Co., in a 2011 interview

Since then, the mortgage has been transferred and consolidated between a handful of banks and financial institutions. It also grew from the original $7.2 million to more than $15 million.

Now, the company’s outstanding balance of $15.756 million has been increased to $52 million by New York-based Cantor Commercial Real Estate Lending.

AVR had expressed interest in selling the hotel last year, when the company brought on commercial brokerage CBRE to market the property as a redevelopment opportunity. At the time, CBRE said the 1.1-acre lot could fit a building with 1,070 condominiums.

Recently, the company invested more than $200 million in South Florida multifamily assets. AVR paid $158.5 million for Mill Creek’s Modera Pembroke Pines, and another $78 million for the Altis Sheridan Village, also in Pembroke Pines.