The Chetrit Group scored a financing lifeline for its long-planned Collins Park hotel redevelopment, The Real Deal has learned.
New York-based Chetrit landed a $62.5 million construction loan for the project, according to sources. Chetrit has owned the property for nearly a decade. Maxim Capital Group, which declined to comment, is the lender. Robert Verrone’s Iron Hound Management Company brokered the financing.
The four-building project takes up the entire block between Park and Washington avenues, and 20th and 21st streets. When completed, it will have about 280 hotel rooms, a number of food and beverage concepts, underground parking and an interior courtyard. Kobi Karp is the project architect.
The financing paid off a $55 million loan that BB&T provided the developer in 2015, Verrone said. The two-year loan from Maxim, which includes extension options, fully capitalizes the project for Chetrit, he added. The loan was also used to satisfy liens against the developer.
Construction has been underway for years.
CG Sunny Isles, led by Joseph Chetrit, paid $10.8 million for the six properties in 2012, records show. The buildings were gutted by a fire in 2007.
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The project is across the street from the renovated Miami Beach Convention Center, near Collins Park and The Bass museum. It’s blocks away from the W South Beach and other oceanfront hotels on Collins Avenue.
Chetrit owns a number of high-profile sites in South Florida, including the Tides hotel on Ocean Drive, a development site along the Miami River, and the oceanfront Miami Beach Resort. The firm recently secured $15 million in financing from MSD Partners for the Miami River project. It was sued for foreclosure of the Tides hotel in February.
In April, Chetrit sold a nearly 5,500-unit multifamily portfolio in Florida, Indiana, Kentucky, Ohio and Pennsylvania for $390 million, likely freeing up capital for the investment and development company.