SHVO has recently announced a significant achievement in the ongoing saga of Miami Beach’s flagship property, The Raleigh Hotel & Residences. The real estate development and investment firm has secured $190 million in new financing, a significant milestone for the iconic property. The loan was provided by BH3 Debt Opportunity Fund II, L.P. and led by BH3 Management through its opportunistic credit platform. The transaction was facilitated by Walker & Dunlop’s New York Capital Markets team and was successfully closed earlier this week.
The restoration and expansion of The Raleigh by SHVO, in collaboration with Deutsche Finance America and a consortium of German institutional pension funds, is one of the most significant investments made in Miami Beach, with a total investment of roughly $1 billion. This investment showcases SHVO’s dedication to bringing top-notch design and architecture to the city, with a substantial equity contribution of more than $300 million.
“As we proceed with our meticulous restoration of The Raleigh, we continue to be inspired by its legacy of elegance, glamour and sophistication,” Michael Shvo says, 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’s return is set to transform Miami Beach’s iconic Art Deco district. Spearheaded by renowned architect Peter Marino in partnership with Kobi Karp Architecture, the design will comprise a 60-suite full-service hotel managed by Rosewood Hotels & Resorts, a 17-story oceanfront tower housing 42 Rosewood-branded residences and a private member’s club offering Michelin-starred dining concepts.
“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,” Gregory Freedman of BH3 Management says. “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.”
With construction ongoing, The Raleigh is set to elevate Miami Beach’s vibrant Art Deco district to new heights upon its reopening in 2026.
“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,” Aaron Appel says, 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.”
