Developer Michael Shvo is no longer involved with the Raleigh Miami Beach, a high-profile property he had planned to redevelop into a luxury condominium and hotel. Nahla Capital, a private equity firm based in New York with $2 billion in assets under management, purchased the three-acre site at 1775, 1757, and 1751 Collins Avenue for approximately $270 million. Bloomberg initially reported the sale.
JVP Management, also based in New York, provided Nahla with $250 million in financing to support both acquisition and development activities. The deal follows Nahla’s successful bid for the project earlier this year. Shvo previously held a right of first refusal on the property and was reportedly seeking additional funds to pay off partners and debt related to the asset.
The sale marks Shvo’s significant withdrawal from the Miami Beach market. In 2019, Shvo and his partners—Deutsche Finance America and a group of German pension funds—acquired the Raleigh assemblage for $243 million. The property includes not only the Raleigh but also the Richmond and South Seas hotels.
For redevelopment plans, Shvo hired Peter Marino along with Kobi Karp Architecture & Interior Design to design new elements for the site. The approved plans called for a 17-story luxury condo tower on beachfront land, comprising 44 condominiums, a private members’ club, and a hotel component. The original Raleigh building, known for its Art Deco style by architect L. Murray Dixon and its iconic pool, was gutted as part of these efforts.
Units were pre-sold at prices mostly above $5,000 per square foot; according to reporting from The Wall Street Journal, one unit was under contract at nearly $8,500 per square foot. Despite these numbers, the project faced competition from Witkoff and Monroe Capital’s nearby Auberge-branded redevelopment of the Shore Club.
Last summer saw Shvo end his relationship with Official—the sales team formerly handling units at Raleigh—after allegations of rape and sexual assault surfaced against Oren and Tal Alexander, who co-founded Official. Sales responsibilities subsequently shifted to Anna Sherrill of One Sotheby’s International Realty.
In 2023, Shvo’s partnership secured $190 million in refinancing through BH3 Management; that loan has now been paid off in connection with this sale.
A spokesperson for the Raleigh stated: “The partnership has chosen to sell the property to Nahla following its repositioning of the project.”
The transaction was arranged by Adam Spies and Marcella Fasulo of Newmark.
Shvo recently sold another Miami Beach asset—a planned office-and-apartment development on Alton Road—to Infinity Collective via deed-in-lieu-of-foreclosure proceedings last month. He continues to own part of an office development at One Soundscape Park located at 1665 and 1667 Washington Avenue in Miami Beach.
