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Miami Real Estate - Miami Real Estate news

Tusday, September 4, 2007

The Savoy Hotel may be facing foreclosure

Hotel may be facing foreclosure “All that glitter’s is not gold”, even in the most desirable of markets- South Beach real estate. The developer converting the Savoy Hotel into multimillion dollar Fendi-designed condominiums and condo hotels is having financial difficulties with its lender and may be facing foreclosure.

Court records show that in June of this year the Savoy’s lender sued for $4.7 million, and last month filed a pre-foreclosure step stating that a suit is pending. There were high hopes for the project and the foreclosure process has been a drastic and unexpected turn for the Savoy. CMA Companies, a Miami Beach real estate firm, announced two years ago that it was buying and converting the beachfront hotel on behalf of a British real estate investment group.

Developers of the Savoy spared no expense even as the market started to show signs of overbuilding, and hired some of the best from Miami to Manhattan to work on and promote the condo and condo-hotel units. Fendi Casa, a luxury brand, was brought in to design the interiors, and Allan Shulman, known for his work on the Soho Beach House was hired to design three new buildings.

Prices for these new luxury condos ranged from $750,000 to more than $7 million and reservations for more than a third of the roughly 100 units were made at prices over $1,500 a square foot. The project failed however, because the developers could not get enough money from banks to finance the construction.

The brokerage firm returned the deposits that buyers had made and closed the sales office this summer.




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