St. Regis Bal Harbour Resort Secures $263M Refi After Special Servicing

Fortress Investment Group has rescued Al Rayyan Tourism Investment Company (ARTIC)’s St. Regis Bal Harbour Resort out of special servicing, supplying a $263 million loan to refinance the oceanfront property. 

The New York-based lender assumed $188 million in existing debt and added $70 million in new debt backing the 213-room property in Bal Harbour, Fla., north of Miami Beach, according to public mortgage documents, which valued the asset at $311 million. 

The new financing comes nearly a year after a $188 million commercial mortgage-backed securities (CMBS) loan tied to the resort headed to special servicing as the financing was set to mature. 

Although the loan remained current and the resort maintained a debt service coverage ratio above break-even, its cash flow in 2024 was about half of 2021 levels, the year it had secured the debt. The lender, Column Financial, wanted ARTIC to buy a replacement interest rate cap, which it had yet to secure, Morningstar reported. 

ARTIC, which is run by a member of the Qatari ruling family, had purchased the resort for $213 million in 2014, three years after it was completed. The complex, which features three 27-story towers at 9703 Collins Avenue, houses two pools, a 14,000-square-foot spa, five dining outposts, 13,000 square feet of event space as well as a condo component. 

The hotel owner and condo owners have sparred. In 2024, the condo association sued ARTIC over alleged building defects, safety hazards, and financial mismanagement. The parties settled the suit a year later.  

Fortress Investment Group and ARTIC did not immediately respond to requests for comment. 

Julia Echikson can be reached at jechikson@commercialobserver.com.