Nahla Capital Makes $275M Play for Michael Shvo’s Raleigh-Miami Beach Project

Key Points

• Nahla Capital has submitted a $275 million bid for the art‑deco Raleigh compound (Raleigh, Richmond, South Seas) on Miami Beach.

• Michael Shvo, with right of first refusal, will have to match the offer and secure fresh equity and possibly refinance the existing $190 million loan.

• After years of delays, an interest‑only loan extension and spiraling carrying costs signal a crossroads—with Nahla’s bid potentially reviving one of Miami Beach’s most anticipated redevelopment sites.

The Raleigh project—purchased by Michael Shvo and partners in 2019 for $243 million—is back in the spotlight as Nahla Capital steps in with a compelling bid. Nahla's move could be the catalyst to complete this pending luxury condo and hotel project. 

Deal Dynamics: Fresh Money or Match Play?

• Nahla Capital—fresh off its completion of the Rosewood Residences in Beverly Hills—is reportedly leading the $275 million offer to buy the Raleigh site.

• Shvo holds a right of first refusal and will have to raise enough capital to buy out partners—his involvement hinges on new equity and potential debt restructuring.

• The site currently carries approximately $190 million in debt; BH3 recently granted a three-month extension past the July 16 maturity date.

Financing Strain & Carrying Costs

• In 2023, interest payments alone neared $20 million, excluding insurance, taxes, and overhead.

• The holding costs are mounting as the project remains at demolition and site‐prep status.

• A Newmark-led marketing effort earlier this year signaled internal confidence issues and readiness to entertain external bids.

Development: Design, Brand & Competitive Context

• Plans include: restoring historic Art-Deco structures, a Rosewood-branded boutique hotel, and a 17-story oceanfront condo tower by architect Peter Marino with interiors by Kobi Karp.

• Amenities may feature an exclusive beach club adjacent to the iconic pool.

• Competitors include nearby projects like Witkoff’s Shore Club with Auberge Resorts branding—projects that have advanced while Raleigh’s sales lag.

Market Perspective & CRE Impact

• For landlords and CRE investors, stalled developments like The Raleigh illustrate the fragility of pre-construction sales—and the importance of capital flexibility.

• Nahla’s bid highlights value in distressed trophy assets, presenting a potential hedge in luxury beachfront asset plays.

• If Shvo matches, it may require renegotiating debt on more favorable terms—highlighting the growing role of creative capital stacks in rescue deals.

Nahla’s $275 million bid signals a possible turning point for the The Raleigh site. For Michael Shvo, matching the offer means rallying new equity and restructuring debt. If Shvo prevails, the project could proceed. If Nahla wins, expect swift infusions of capital aimed at jumpstarting design and construction. For CRE investors, this deal offers a prime example of opportunistic investing in high-profile distressed luxury assets—and underscores the fine line between stagnation and revival in top-tier beachfront markets.