A $188 million commercial mortgage-backed securities (CMBS) loan tied to the St. Regis Bal Harbour Resort is being transferred to special servicing, according to Morningstar. The transfer comes as the loan faces a maturity date next month.
The owner of the property, Al Rayyan Tourism Investment Company (ARTIC), based in Qatar, remains current on the mortgage and holds an option to extend the maturity date. The resort is located at 9703 Collins Avenue in Bal Harbour.
San Francisco-based Column, the lender on the deal, is currently reviewing a request from Al Rayyan for an extension, as reported by Morningstar. Tarek El Sayed serves as CEO of Al Rayyan.
Despite maintaining an above breakeven debt service coverage ratio, Al Rayyan’s net cash flow for 2024 reportedly dropped to about half of its 2021 level. This decline may prompt increased scrutiny from bondholders.
Al Rayyan’s chairman is Sheikh Faisal Bin Qassim Al Thani, a member of Qatar’s ruling family. The company obtained the CMBS loan in 2021 and used it to withdraw $44.5 million in equity and pay off a previous $132 million mortgage that had been acquired by London-based Reuben Brothers, led by David and Simon Reuben.
The St. Regis Bal Harbour complex was completed in 2011 and consists of three 27-story towers with 192 hotel rooms and 205 condominiums. Al Rayyan acquired the hotel portion—located in the center tower—for $213 million in 2014 from Starwood Capital Group, led by Barry Sternlicht.
Al Rayyan invested an additional $40 million into renovations, according to loan filings. In 2023, the condo association for St. Regis Bal Harbour Residences filed a lawsuit against Al Rayyan alleging building defects, health and safety concerns, and financial mismanagement. The complaint seeks a comprehensive assessment of the building and remediation for alleged issues.
In another transaction this year, Al Rayyan sold the ownership entity for W Miami—a 50-story hotel with 148 rooms located in Brickell—to a joint venture between BH Group and Süzer Group. The sale price was not disclosed.
