Real Estate
Home›Real Estate›Industry›Fortress provides $263M refi for St. Regis Bal Harbour…
Fortress provides $263M refi for St. Regis Bal Harbour Resort
The loan covers $188 million of existing debt and adds $70 million, valuing the property at $311 million while the resort’s 2024 cash flow fell to about half of 2021 levels.
Fortress Investment Group has stepped in to refinance ARTIC’s St. Regis Bal Harbour Resort, according to Commercial Observer. The New York-based lender provided a $263 million loan to refinance the oceanfront property in Bal Harbour, Fla.
The financing structure assumes $188 million in existing debt and adds $70 million in new debt backing the 213-room resort, with public mortgage documents valuing the asset at $311 million. Commercial Observer also reported the resort had entered special servicing nearly a year earlier after a $188 million CMBS loan tied to the property was due to mature.
Although the loan remained current and the resort’s debt service coverage ratio stayed above break-even, the outlet said cash flow in 2024 was about half of 2021 levels, when ARTIC secured the debt. Column Financial sought that ARTIC purchase a replacement interest rate cap, which ARTIC had not yet obtained, per the report.
ARTIC, run by a member of the Qatari ruling family, bought the resort in 2014 for $213 million, three years after it was completed. Commercial Observer noted the condo association sued ARTIC in 2024 over alleged building defects and financial mismanagement, with the parties settling the dispute a year later.