Michael Shvo’s South Beach hotel plan could cost him $500M

They plan to build a 200-foot resi tower on the property

Miami /
Sep.September 13, 2019 12:30 PM
Michael Shvo and The Raleigh (Credit: Getty Images)

Michael Shvo and The Raleigh (Credit: Getty Images)

Between buying the Raleigh Hotel, pending deals to purchase two neighboring boutique hotels and proposing a new residential tower, Michael Shvo and his partners are already looking at a $250 million investment – and that amount could double.

“We will invest $500 million over the next year,” Shvo said, speaking at the annual Miami Beach Chamber of Commerce real estate luncheon on Thursday. “Once there is real restoration, you will see beautiful buildings come to life that will bring in other developers.”

The New York developer participated in a panel discussion alongside Matis Cohen, principal of Kahunah Properties; Rory Greenberg, founder and managing partner of RB Green companies; and Alicia Cervera Lamadrid, managing partner of Cervera Real Estate. The event was hosted at Faena Forum in Miami Beach.

Shvo was making the case for developers and Miami Beach officials cooperating on developments that combine new construction and historic preservation in a city that has stringent regulations for its Art Deco architecture.

From left: Matis Cohen, Alicia Cervera Lamadrid, Rory Greenberg and Michael Shvo

From left: Matis Cohen, Alicia Cervera Lamadrid, Rory Greenberg and Michael Shvo

“There is always this debate about historic preservation versus development when it should go hand-in-hand,” Shvo said. “I wanted to buy a beautiful building with a lot of inherent value along with something new that supports the historic part.”

In late July, the Miami Beach City Commission endorsed a proposed ordinance that would allow property owners who control 115,000 square feet of land to build “ground level additions” up to 200 feet high in the RM-3 zoning district between 16th and 21st streets. Shvo, along with Bilgili Group and Deutsche Finance Group, bought the 83-room Raleigh at 1775 Collins Avenue for $103 million from a Tommy Hillfiger and Dogus Group.

The developer also purchased the Richmond Hotel and the South Seas Hotel, two Art Deco properties on the same block as the Raleigh.

Combined, the three properties sit on more than 125,000 square feet of land. Shvo wants to build a slender, 200-foot residential tower behind the Richmond and the South Seas.

The panel’s Greenberg also addressed another proposed new ordinance to give height bonuses and eliminate parking requirements for office and co-living projects on Washington Avenue.

“Washington Avenue is an obvious place for different uses,” Greenberg said. “Can co-living work on Washington? Probably. We need to pull back restrictions in a reasonable way.”

City commissioners on Wednesday delayed a second reading vote on the Washington Avenue ordinance because of opposition to allow co-living apartment buildings in that area of South Beach.


Related Articles

arrow_forward_ios
Hollywood Beach double play: Brooklyn investor picks up two motels for $13M
Hollywood Beach double play: Brooklyn investor picks up two motels for $13M
Hollywood Beach double play: Brooklyn investor picks up two motels for $13M
James Vosotas and Branden Muhl with Hotel Greystone in Miami Beach (Trip advisor, Trans Inns Management, Mahaska)
Miami-Dade judge tosses out Hotel Greystone lawsuit
Miami-Dade judge tosses out Hotel Greystone lawsuit
Palm Holdings Chairman Ashok Taneja and the Element Miami International Airport Hotel at 3525 NW 25th Street (LinkedIn, Marriot)
Peachtree sells Element hotel near MIA for $20M
Peachtree sells Element hotel near MIA for $20M
Prologis CEO Hamid Moghadam (Prologis, CBRE, iStock)
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
The Deauville Beach Resort at 6701 Collins Avenue (Google Maps, Office of the City Manager)
Miami Beach orders historic oceanfront Deauville resort to be demolished
Miami Beach orders historic oceanfront Deauville resort to be demolished
From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
From left: Greg Friedman (buyer), managing principal and CEO, Peachtree Hotel Group, and David Leatherwood (seller), CEO and managing member, Norwich Partners (Peachtree Hotel Group, Norwich Partners, Booking.com, iStock)
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Z Ocean Hotel in Miami Beach
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
arrow_forward_ios

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

Loading...