A $188 million commercial mortgage-backed securities (CMBS) loan tied to the St. Regis Bal Harbour Resort is being transferred to special servicing as its maturity date approaches next month, according to Morningstar. The hotel’s owner, Al Rayyan Tourism Investment Company (ARTIC), a Qatari firm led by CEO Tarek El Sayed, remains current on the mortgage and holds an option to extend the loan’s maturity.
The property is located at 9703 Collins Avenue in Bal Harbour. San Francisco-based Column, the lender, is currently reviewing ARTIC’s request for an extension of the loan.
Despite ARTIC maintaining a debt service coverage ratio above breakeven, Morningstar reports that the net cash flow from the property in 2024 dropped to about half of what it was in 2021. This decline could lead bondholders to examine the situation more closely.
ARTIC’s chairman is Sheikh Faisal Bin Qassim Al Thani, a member of Qatar’s ruling family. The company secured the $188 million loan in 2021, using it to withdraw $44.5 million in equity and pay off a previous $132 million mortgage held by London-based Reuben Brothers, owned by David and Simon Reuben.
The St. Regis Bal Harbour consists of three 27-story towers completed in 2011, with 192 hotel rooms and 205 condos. ARTIC acquired the hotel portion—located in the center tower—for $213 million in 2014 from Starwood Capital Group, founded by Barry Sternlicht. The company also invested $40 million in renovations after acquiring the property.
In 2023, the St. Regis Bal Harbour Residences condo association filed a lawsuit against ARTIC in Miami-Dade Circuit Court. The association alleges building defects, health and safety issues, and financial mismanagement by ARTIC. The suit seeks a full assessment of the building and remediation for various alleged problems.
Earlier this year, ARTIC sold its ownership entity for W Miami—a 50-story hotel with 148 rooms in Brickell—to a joint venture between BH Group and Süzer Group. Financial terms were not disclosed.
