The owner of the Grand Beach Hotel in Miami Beach has obtained a $125 million refinancing from the Royal Bank of Scotland.
MB Florida Ltd. LLC, which is managed by the Miami Beach-based Murray Group, obtained the mortgage secured by the 430-room hotel at 4835 Collins Ave. on Feb. 14, according to Miami-Dade County records. The county recorded the refinancing Feb. 15.
The Murray Group completed and opened Grand Beach in 2009. The new loan replaces a $50 million loan the company obtained in August 2011. For that mortgage, TotalBank was the lead lender. Sabadell United Bank participated in the loan with a $25 million contribution.
The transaction was structured as an amended version of the original mortgage, accounting for the new lender and $75 million added to the loan balance. This was likely done to ensure MB Florida would pay documentary stamp taxes only on the $75 million advance.
A similar approach was used by the owner of The Clevelander in South Beach for an April 2012 refinancing. In that transaction, a $30 million construction loan was converted to a hotel loan without triggering additional doc stamp charges. It saved The Clevelander $200,000 in taxes.
MB Florida was represented by attorney Steven Zelkowitz, managing shareholder of the Miami office of GrayRobinson. He confirmed Thursday that the refinancing closed but declined further comment.
The Murray Group also declined comment.
MB Florida has owned the 2.06-acre property since 1993 when it paid $22.84 million, according to county property records. That transaction also included the nearby Doral Ocean Beach Resort, which the company later sold.
The hotel property was most recently assessed at $62.7 million by the Miami-Dade County property appraiser.
Located on a block known as Millionaire’s Row, Grand Beach amenities include seven pools, bars, a library and a fitness center, according to the hotel website.
Murray Group is building the Grand Beach Hotel Surfside on the former Beach House property at 9419 Collins Ave. The project includes two hotels offering different price-points, according to the project’s website. On the beach side of Collins Avenue, the company plans to build 269 hotel rooms, a restaurant, bar and three pools. A second hotel building west of Collins will have 72 larger rooms operating under a more affordable service concept.
The project is expected to be completed during the fourth quarter.