A Miami real estate attorney, Suzanne Amaducci-Adams, is battling hotel foreclosures in our fair city even as the deal vultures circle. She knows that the worst is not over for commercial real estate, and that it's not going to get better anytime soon. She specializes in hotel and marina loan restructurings, and her hands are full. In terms of different types of properties, hotels are the earliest to feel the effects of an economic downturn, as they basically sell 24-hour leases on rooms.
There are several ways to approach a problem hotel property. You can write down some principal, change loan terms, delay particular payments, or ask for forbearance (basically, sitting tight). One of her recent cases involved the Royal Palm Hotel, which she helped the Sunstone Hotel Investors REIT purchase for $126 million. The buyer is located in Aliso Viejo, California. It plans to hire a Florida residential remodeling boutique to renovate the foreclosed hotel, because it sees value in Miami Beach and the hotel. We consider this as a green shoot indicating that the Miami Beach market is on its way back.
The Royal Palm has a fabled history in the South Beach district of Miami Beach. It is not far from Ocean Drive and Lincoln Road, which puts it right in the center of the action. The hotel opened in 1939 to rave reviews, setting the standard for pre-War luxury. The original Shorecrest Tower is outfitted with the finest amenities, include large screen flat TVs, rain showers, and bath products from the upscale purveyor, Crabtree & Evelyn. The views of the Atlantic Ocean from the tower are awe-inspiring. The new Royal Palm Tower is a blend of Art Deco and contemporary design. The new tower features even larger flat screen TVs (42 inches), Wi-Fi Internet access and custom furniture. There are even select guestrooms sporting private balconies affording spectacular views of the city and beach.
Guests at the Royal Palm enjoy a staff that speaks several languages and offers valet and laundry services. It's just a short walk from the hotel lobby to all of the electric nightlife found on South Beach. You can stroll down Collins Avenue, dine at trendy restaurants and shop at cutting-edge boutiques. Or climb into your convertible and drive to Boca Raton or Coconut Grove. All this is possible because Suzanne was able to bring the buyer, seller and bank together in a deal that satisfied all parties.