Raleigh Hotel in South Beach Trades for $103M
The Deutsche Finance America-Bilgili Holding and SHVO joint venture purchased the property in an all cash transaction in partnership with a number of Germany's largest institutions, including Bayerische Versorgungskammer—Germany's largest public pension fund manager.
MIAMI—After undertaking a multi-year and multi-million-dollar gut renovation of the hotel property, Tommy Hilfiger and Turkish partner Dogus Group have sold the iconic Art Deco Raleigh Hotel on South Beach for $103 million to a partnership of Deutsche Finance America, Bilgili Holding and SHVO.
Hilfiger and Dogus acquired the property in 2014 for $56.5 million, two years after David Edelstein and Sam Nazarian acquired the circa 1940s hotel for $55 million, according to the Miami New Times. In 2009, New York hotelier Andre Balazs sold the Raleigh Hotel to the Brilla Group for $30 million.
The Deutsche Finance America-Bilgili Holding and SHVO joint venture purchased the property in an all cash transaction in partnership with a number of Germany’s largest institutions, including Bayerische Versorgungskammer—Germany’s largest public pension fund manager.
“We are thrilled about the next chapter of the Raleigh’s history—as a nostalgic icon and a symbol of 21st century style and luxury,” states Michael Shvo, chairman and founder of New York City-based SHVO. “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.”
Jason Lucas, managing partner of Deutsche Finance America, adds, “The Raleigh Hotel is an embodiment of Miami’s timeless South Beach and we believe this investment offers our LPs outsized risk-adjusted returns in a liquid, gateway market.”
The 83-room hotel is known for its ornate beachside swimming pool, which LIFE Magazine termed “the most beautiful pool in America” in 1947.
The deal for the Raleigh Hotel is the second investment for the Deutsche Finance America-Bilgili Holding and SHVO joint venture. Last August, the venture acquired 685 5th Ave. in New York City for $135 million.
Serdar Bilgili, chairman of Bilgili Holding, says that the joint venture is looking to diversify and grow its portfolio in other global locations, particularly in Los Angeles and New York City.
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