Ritz-Carlton South Seaside Scores $230M Refi, Merges With Sagamore

Diego Lowenstein, Dayssi Olarte de Kanavos, Paul Kanavos, and Ronny Ben Josef, with The Sagamore (Credit rating: The Sagamore Lodge)

The a few households that own Ritz-Carlton inns in South Beach and Bal Harbour, as perfectly as the Sagamore Resort in Miami Seaside, merged possession of their properties.

The Ben-Josef Group, which owns the Sagamore, and associates Flag Luxurious Team and Lionstone Group, which very own the two Ritz-Carltons, secured a joint merger, and could convey the Sagamore below the Ritz-Carlton flag, claimed Diego Lowenstein, Lionstone Group CEO.

At the similar time, Lionstone and Flag closed on a $230 million refinance of The Ritz-Carlton, South Beach at 1 Lincoln Road, Lowenstein told The True Offer. The lender is Deutsche Bank and BHI United states (Financial institution Hapoalim).

The lodges are all oceanfront. Together, the a few homes whole much more than 600 lodge rooms. The Ben-Josef, Kanavos and Lowenstein families will co-take care of the new joint undertaking. The a few resorts reopened in July, and a $90 million renovation of the Ritz South Beach front was done in February.

The Ritz-Carlton, Bal Harbour (Credit: Flag Luxury Group LLC)

The Ritz-Carlton, Bal Harbour (Credit rating: Flag Luxurious Group LLC)

The Sagamore, at 1671 Collins Avenue, and the Ritz South Seaside are following to every single other.

The families’ ties go back again many years. Principals Dayssi Olarte de Kanavos of Flag Luxurious Group and Ronny Ben-Josef have identified just about every other since large faculty. Lowenstein said that Lionstone and Flag experienced seemed at attaining the Sagamore “several moments about the previous decade” and started talks with the Ben-Josef loved ones before this year, prior to the pandemic.

“From an asset standpoint and an financial standpoint, it created all the feeling in the world,” Lowenstein stated.

His loved ones has owned The Ritz-Carlton, South Seaside due to the fact the early 1970s. The Ben-Josef Group partnered with InSite Team to acquire the Sagamore in 2016 for $63 million, and InSite Group afterwards bought its situation in the assets, in accordance to its web site.

Lowenstein mentioned the new joint venture possession is setting up a comprehensive renovation of the Sagamore, maintaining its concentration on artwork. It is anticipated to be done in 2022, and will be managed as element of The Ritz-Carlton, South Seashore.

“We’re preserving a great deal of the legacy of the Sagamore intact,” Lowenstein said, introducing that the people program to hold onto the homes for generations. “Unlike lots of other motels that have traded and flipped in excess of the several years, we’re incredibly considerably generationally minded.”

The resort marketplace nationwide has struggled all over the pandemic, as international and domestic vacation continues to be low. A quantity of properties have closed or are in the foreclosures method. Lowenstein claimed there are “tremendous opportunities” to acquire more inns due to the pandemic.

But he is also optimistic about the hospitality current market recovering in Miami, pointing to an improve in vacationers to warmer climates.

“December and the early months of 2021 appear really promising,” he said.