HFZ Capital Group is looking to sell the historic Shore Club hotel in South Beach, as the company’s financial and legal issues continue to pile up, The Real Deal has learned. The New York-based firm, led by Ziel Feldman, tapped Newmark to sell the oceanfront hotel where it once planned a luxury condo and hotel development, according to sources.
HFZ, which has recently laid off and furloughed employees as it deals with lawsuits from lenders and subcontractors in New York, paid more than $175 million for the 18-story, 309-key hotel at 1901 Collins Avenue in 2013.
The company had planned to redevelop the hotel into a 67-unit luxury Fasano-branded condo, but canceled plans and returned buyers’ deposits due to the slow market in 2017. Management company Sbe has been operating the hotel since it acquired Morgans Hotel Group in 2016.
Newmark broker Adam Etra confirmed that the beachfront property is on the market. In a statement to TRD, a spokesperson for HFZ said the firm is considering selling the hotel or selecting a joint venture partner to reposition the property.
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