2009 – 2012
CHMW was retained by the senior and junior mezzanine lender in August 2009 to asset manage this prime oceanfront asset in Miami Beach, as they prepared to foreclose and assume ownership. The property lacked professional management, was saddled with legal issues, had non-paying retail tenants, multiple food and beverage leases, and significant capital requirements. The primary goal was to stabilize the asset and position for sale. The property consisted of a 334-room hotel; 15,000SF of meeting space; two restaurants, one nightclub (all leased), an active rooftop pool and bar; a 42,000SF branded gym/spa; 30,000SF of retail and 259 residential condominiums, of which 110 had been contracted for sale but over 100 were in rescission.
Facilitated lender takeover, implementing an immediate strategy aimed at stabilizing the asset and established reporting, communication and monitoring protocol.
Operational Asset Management
- Coordinated an RFP process to identify/select a qualified third-party operator; Negotiated flexible terms to maintain unencumbered status of the asset.
- Conducted a detailed operational assessment to identify opportunities for revenue enhancement and cost reduction, and developed a strategic plan including a well-defined lender exit strategy. Operational enhancements resulted in a $4M increase in room sales alone and a GOP increase of more than $2.5M over the two year asset management period.
- Developed a plan for overseeing the HOA; Stabilized relations with existing residents of a separately managed residential tower, Roney Palace, including oversight and management of a host of litigation issues inherited from the prior ownership group.
- Analyzed the retail and space leases, which included three separate food and beverage tenants/operations and several individual retail operations. Negotiated more favorable terms and replaced delinquent tenants.
- Coordinated an RFP for retail broker and significantly enhanced the guest service and offering, as well as the revenue from leasing.
Capital Planning & Oversight
- Worked with a local branding group to develop a new image and market positioning for the asset. Conducted a space planning charrette in which we outlined a capital program to maximize functionality and support an elevated market and rate positioning. This work was the basis for outlining future investment potential which helped attract investors and allowed the lender to exit.
- In 2012 the property was sold, allowing our client to recover the majority of the principal loan balance. CHMW was retained on a consultancy basis by the new ownership group as an advisor during the transition and planning of the $100M property repositioning.