New York-based Shvo and its partners have secured a $190 million construction loan for the renovation and condominium addition at The Raleigh hotel at 1775 Collins Avenue in Miami Beach. The loan, provided by Fort Lauderdale’s BH3 Management through its BH3 Debt Opportunity Fund II, supports the partnership between Shvo, led by Michael Shvo, and the German firm Deutsche Finance. The loan encompasses The Raleigh, the Richmond Hotel at 1757 Collins Avenue, and the South Seas Hotel at 1751 Collins Avenue. The transaction was brokered by Walker & Dunlop.
In 2019, the developers acquired the three hotels for $242.85 million, financed at that time by a loan from Acore Capital Management amounting to $146.9 million. By securing a larger loan, the developers could potentially extract equity from the project, advancing the construction. They have projected the total hotel investment for the project to be around $1 billion, including an equity contribution of over $300 million.
The Raleigh, A Rosewood Hotel and Residences. Credit: DBOX.
“As we proceed with our meticulous restoration of The Raleigh, we continue to be inspired by its legacy of elegance, glamour and sophistication,” said Michael Shvo, Chairman and CEO of SHVO. “Our new financing will allow us to honor the historic significance of The Raleigh while ushering it into a new era of refined luxury, creating an unparalleled hospitality experience for generations to come.”
The Raleigh, a property developed in the 1940s, is set to retain many of its unique features, including the distinctive curvy pool, the Martini Bar, and the Tiger Room, under Shvo’s stewardship. To ensure a design that respects the property’s heritage while infusing modern elements, Shvo has enlisted the expertise of New York-based architect Peter Marino and Miami’s Kobi Karp Architecture.
The Raleigh, A Rosewood Hotel and Residences. Credit: DBOX.
“BH3 is pleased to provide the financing for the first stage of construction for SHVO’s plan to restore and revive the iconic Raleigh property in Miami Beach,” said Gregory Freedman of BH3 Management. “Between SHVO’s track record of execution on other marquee luxury projects, the best-in-class team that has been assembled, including Rosewood and Peter Marino, and The Raleigh’s historic relevance and design, this will be a transformational project for Miami Beach.”
“This transaction underscores the reality that despite today’s challenging capital markets environment, liquidity remains readily available for proven sponsors determined to develop unique assets in established markets,” said Aaron Appel, Senior Managing Director and Co-Head of the New York Capital Markets team at Walker & Dunlop. “The collaboration between SHVO, Peter Marino and Rosewood Hotels & Resorts ensures that upon delivery, The Raleigh will be a truly market-defining project and a welcome addition to the rapidly changing landscape of Miami Beach.”
Construction on the property is currently in progress, with the hotel temporarily closed. Upon its reopening in 2026, The Raleigh will feature 60 suites under the management of Rosewood Hotels & Resorts. Additionally, the developer is constructing a 17-story condominium with 42 units, branded by Rosewood, along with a high-end restaurant and an exclusive member’s club.
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