Nahla Capital Wants To Expand Condo Component At Miami Beach’s Raleigh Project

• Nahla Capital is seeking approval to increase condo units at the Raleigh redevelopment
• Proposal would add two floors and expand the residential tower to 17 stories
• Revised plan continues the long-running redevelopment of three historic Art Deco hotels

What The Revised Raleigh Proposal Includes

Nahla Capital is seeking approval to expand the condominium portion of the stalled Raleigh redevelopment project in Miami Beach. The updated proposal would increase the residential tower from 15 to 17 stories, adding approximately 66,000 square feet to the development. Condo inventory would rise from 44 to 52 units under the revised plans. The broader redevelopment includes the historic Raleigh, Richmond, and South Seas hotels located along Collins Avenue between 1751 and 1775 Collins Avenue in South Beach.

What Else The Redevelopment Will Add

The revised project would also introduce a new two-story beach pavilion next to Raleigh’s iconic fleur-de-lis-shaped swimming pool. Plans call for the pavilion to accommodate a 690-seat restaurant as part of the larger mixed-use hospitality redevelopment. The full project is expected to total approximately 331,000 square feet and include a 60-room hotel component alongside the luxury residences. While much of the original structure has been demolished, portions of the historic Art Deco façades are expected to remain incorporated into the redevelopment.

What Happened To The Original Project

The Raleigh redevelopment has faced years of delays and ownership changes. The property was originally acquired in 2019 by developer Michael Shvo and partners Deutsche Finance America and Bayerische Versorgungskammer for approximately $220 million. Plans initially called for restoring the historic hotel while adding a luxury residential tower managed by Rosewood Hotels & Resorts. However, construction stalled, and the project later became entangled in financing issues and broader controversies surrounding the development team. In 2025, Nahla Capital acquired the three-acre site for roughly $270 million after winning a bid for the troubled project.

What This Means For Miami Beach Development

The revised proposal reflects continued investor confidence in Miami Beach’s luxury hospitality and residential market despite the project’s prolonged delays. Oceanfront development sites in South Beach remain some of the most valuable and supply-constrained real estate assets in South Florida, especially along the Collins Avenue corridor, often referred to as “Billionaires Beach.” By increasing the condo count and residential density, Nahla Capital appears focused on improving the project’s financial performance while preserving the prestige associated with the historic Raleigh brand.

What The Redevelopment Debate Represents

The Raleigh project also highlights the growing complexity of large-scale historic redevelopment in Miami Beach. Developers increasingly face pressure to balance preservation requirements, modern luxury expectations, construction economics, and shifting market conditions, all within highly regulated coastal districts. The project’s evolution over the last several years reflects both the opportunities and challenges tied to redeveloping iconic hospitality properties in one of the country’s most competitive luxury real estate markets. The proposal is scheduled to go before the Miami Beach Planning Board in June.