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Debt & Equity

Canyon adds to hospitality portfolio with $157M loan

Canyon Capital Realty Advisors has provided a $157 million senior construction loan to a joint-venture between the Related Group of Florida and SBE Hotel Group to finance the development of the SLS Brickell Hotel & Residences.

The proceeds of Canyon Capital Realty’s construction loan will be used to develop a 54-story luxury mixed-use tower, consisting of a 124-room SLS branded hotel and 453 SLS branded residential condominiums located above the hotel.

The hotel will include ground floor restaurants featuring concepts by renowned chefs Michael Schwartz and Jose Andres.

“Our hospitality expertise played a critical role in the borrower’s decision to work with us,” said Ronald C. Muzii, Jr., the South Florida-based senior director with Canyon Capital Realty.

“Related knew we were an experienced condominium construction lender, but SBE knew that Canyon had extensive nationwide hotel experience as well which would be crucial ingetting this deal done.”

This transaction marks Canyon Capital Realty’s 13th investment in Florida in the last four years and the fourth recent debt transaction in the Brickell submarket.

Canyon’s current portfolio of loans in the Brickell submarket include a $123.6 million senior construction loan made in October 2014 for Echo Brickell, a 57-story luxury residential condominium development, and a $28 million construction loan made in November 2013 for BrickellHouse, a 46-story, 374-unit luxury condominium property.

The W Hotel Hoboken
The W Hotel Hoboken
Canyon’s loan on Brickellhouse is currently being paid down through the closing of the condominium units to buyers.
Added Robin Potts, director at Canyon Capital Realty, “After a long history of investing in Florida, we are excited to close our first transaction with Related, a prolific developer that has transformed the Miami skyline.”

The SLS Brickell hotel brings another marquee property to Canyon Capital Realty’s current portfolio of hospitality transactions nationwide, which includes the W Austin Hotel & Residences (Austin, Texas), the 1,070-key Washington Hilton (Washington, DC), and the 135-key Hotel Icon Autograph Collection (Houston, Texas).

Previous Canyon Capital Realty transactions which have been realized include the Turnberry Isle Miami Autograph Collection (Aventura, Fla.), Hyatt French Quarter (New Orleans, La.), and W Hoboken (Hoboken, N.J.).

“Canyon’s experience in hospitality investing includes high-profile assets with extensive food and beverage operations in entertainment-driven markets, similar to the dynamic that SBE and the SLS will bring to the Brickell area,” said Richard Bosworth, managing director of global hospitality for Canyon Capital Realty.

“This expertise enabled our team to underwrite a hotel development project with significant restaurant and club operations.”

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