SHVO, the ultra-luxury real estate development and investment firm led by Michael Shvo, has secured $190 million in new financing for The Raleigh Hotel & Residences, Miami Beach, a significant milestone in the next chapter of the iconic art-deco storied property. The loan, provided by BH3 Debt Opportunity Fund II, L.P. led by BH3 Management through its opportunistic credit platform, and facilitated by Walker & Dunlop's New York Capital Markets team, closed earlier this week. Construction is well underway and the property is on-track to open in 2026.
With a total investment of approximately $1 billion, including a substantial equity contribution of over $300 million, the restoration and expansion of The Raleigh by SHVO, in partnership with Deutsche Finance America and a group of German institutional pension funds,represents one of the single largest investments in Miami Beach and serves as a testament to SHVO’s commitment to bringing world-class design and architecture to the city.
Located on 1775 Collins Avenue and situated on an unprecedented three-acre oceanfront parcel, the return of The Raleigh will redefine Miami Beach's historic Art Deco district. The design, helmed by acclaimed architect Peter Marino in collaboration with Miami-based Kobi Karp Architecture, will feature a 60-suite full-service hotel managed by Rosewood Hotels & Resorts, a separate 17-story oceanfront tower with 42 Rosewood-branded residences, and a private member’s club with Michelin-starred dining concepts.
“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.”
“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.”
