A $188 million commercial mortgage-backed securities (CMBS) loan connected to the St. Regis Bal Harbour Resort is being transferred to special servicing, according to a report from Morningstar. The loan, which matures next month, remains current, and the hotel’s owner, Al Rayyan Tourism Investment Company (ARTIC), still has an option to extend the maturity date.
The property, located at 9703 Collins Avenue in Bal Harbour, is owned by ARTIC, a Qatari firm led by CEO Tarek El Sayed. Column, the San Francisco-based lender, is currently reviewing ARTIC’s request for an extension of the loan.
Morningstar’s analysis indicates that although ARTIC has kept the debt service coverage ratio above breakeven, the resort’s net cash flow in 2024 fell to about half of its 2021 level. This decline could lead to increased scrutiny from bondholders.
ARTIC’s chairman is Sheikh Faisal Bin Qassim Al Thani, a member of Qatar’s ruling family. Records show the company obtained the loan in 2021. Proceeds from the loan were used to withdraw $44.5 million in equity and pay off a previous $132 million mortgage held by London-based Reuben Brothers, headed by David and Simon Reuben.
The St. Regis Bal Harbour is a condo-hotel completed in 2011 with three 27-story towers featuring 192 hotel rooms and 205 condominiums. In 2014, ARTIC purchased the hotel portion for $213 million from Starwood Capital Group, founded by Barry Sternlicht.
Loan filings show that ARTIC invested an additional $40 million in renovations at the property. In 2023, the St. Regis Bal Harbour Residences condo association filed a lawsuit against ARTIC, alleging building defects, health and safety issues, and financial mismanagement. The lawsuit seeks a full assessment of the building and remedies for various alleged problems.
In another transaction this year, ARTIC sold the ownership entity for the W Miami hotel in Brickell to a joint venture between BH Group and Süzer Group. The sale price was not disclosed.
