Historic Miami Hotel Sells for $103M
- Feb 27, 2019
A joint venture of Deutsche Finance America, Bilgili Holding and SHVO has acquired the historic Raleigh Hotel in Miami for $103 million in an all-cash transaction. A partnership between Tommy Hilfiger and Dogus Group, a Turkish conglomerate, sold the 83-key asset.
Situated at 1775 Collins Ave. in Miami Beach, the hotel was built in 1940 and is an icon of classic South Beach Art Deco design. Raleigh is minutes from the Bass Museum of Art and Temple Emanu-El. The property is also in close proximity of the Miami City Ballet and Miami Beach Botanical Garden. Raleigh features a beachside swimming pool, which received “the most beautiful pool in America” designation in 1947 from TIME magazine.
According to public records, the seller purchased the building in 2014 for $56.5 million. Following the acquisition, the previous owner revealed plans for a multi-million dollar overhaul of the property, although the program wasn’t finalized. Soon after Hurricane Irma struck in 2017, the hotel closed and it has been closed since for renovations.
Continuing the restoration effort
The joint venture partnered with several German institutions in closing the acquisition, including Bayerische Versorgungskammer, Germany’s largest public pensions scheme manager. The deal marks the partnership’s second collaboration after purchasing the roughly 100,000-square-foot office segment at 685 Fifth Ave. in Manhattan last year.
“Over the past four years, Tommy Hilfiger and the Raleigh Group have put incredible effort into restoring this iconic Art Deco gem and we are grateful that they are entrusting us as stewards of the Raleigh’s future. We are committed to bringing about its next renaissance,” said Michael Shvo, chairman & founder of SHVO, in prepared remarks.
“We are still looking forward to diversifying and growing our portfolio further in other global hubs, especially in Los Angeles and New York City,” explained Serdar Bilgili, chairman of Bilgili Holding.
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