Nahla Capital Ousts Michael Shvo from Delayed Raleigh Hotel and Condo Redevelopment

Nahla Capital Takes Control of the Raleigh Project

Michael Shvo is officially out of the long-delayed Raleigh Hotel and Residences project on Miami Beach’s oceanfront.
Private equity firm Nahla Capital acquired the stalled Art Deco redevelopment for about $270 million, according to Bloomberg.

The property at 1775 Collins Avenue spans three acres along one of South Beach’s most coveted stretches, near the Witkoff Group’s Shore Club. Vertical construction and sales had been stagnant for months, leading to the takeover.

Shvo’s Attempt to Retain Control Falls Short

Over the summer, Nahla submitted the winning bid for the site. Shvo, who held a right of first refusal, tried to raise funds to match the offer and pay off the project’s financing and partners. However, he failed to do so.
Adam Spies and Marcella Fasulo of Newmark represented the sellers in the deal.

In 2019, Shvo partnered with Deutsche Finance America and German pension fund Bayerische Versorgungskammer (BVK) to buy the property for $220 million. The project was meant to mark Shvo’s comeback as a developer after his tax evasion conviction.

Ambitious Plans Meet Multiple Setbacks

The plan called for restoring the historic eight-story Raleigh Hotel, built in 1940, and adding a 17-story residential tower with 44 condos designed by Peter Marino. Rosewood Hotel & Resorts was set to manage the property.

The development struggled to move forward. BH3 Management, which provided a $190 million loan, extended its July maturity date by three months. Meanwhile, the sales effort suffered another blow when lead brokers Tal and Oren Alexander faced state sexual assault and federal sex trafficking charges earlier this year. After the indictment, One Sotheby’s International Realty replaced them. (The Alexanders have denied all allegations.)

A String of Setbacks for Shvo in Miami Beach

The Raleigh sale marks another defeat for Shvo in South Florida. Last month, he sold a prime Alton Road assemblage, where he had planned a Foster + Partners-designed mixed-use project, according to The Real Deal.

Representatives for Shvo, Nahla Capital, and Newmark did not respond to requests for comment.

Unlock the Finest in Miami Real Estate:

Find New Developments in Miami
Explore Miami’s most prestigious new developments — hand-selected for their design, exclusivity, and investment potential.

Explore Miami Neighborhoods
Navigate the city like a local. Discover the communities we know best — from oceanfront enclaves to cultural hotspots.

Sell Your Property with BRG
Your property deserves more than a listing. Discover how our bespoke marketing strategy delivers superior results.

→ Live Better. Live Beyond.