Miami Beach’s Swank Shore Club Goes Delinquent

Discussion in 'Wall St. News' started by ByLoSellHi, Oct 20, 2009.


    * October 20, 2009, 4:25 PM ET

    Hotel Foreclosure Watch: Miami’s Swank Shore Club Goes Delinquent


    By Kris Hudson

    Things aren’t so sunny for New York developers Philip and Michael Pilevsky at their swank Miami Beach hotel The Shore Club, which recently went delinquent on its $111.5 million securitized mortgage.

    The special servicer overseeing the mortgage reported earlier this month that the Pilevskys had “withdrawn a threat to close the hotel after we agreed to fund payroll and critical expenses” from one of the mortgage’s reserves, according to credit-research company Trepp LLC.

    That special servicer, Cerberus Capital Management LP’s LNR Partners Inc., declined to comment for this story. But, according to Trepp, LNR reported the Shore Club’s mortgage as 30 days delinquent this month. The hotel has another $11.5 million of debt on it in addition to the mortgage.

    A spokesperson for Philip Pilevsky and his son, Michael, said Tuesday that the owners and LNR are in talks to resolve the dispute. “A renovation of the hotel is in process, and there is a disagreement between the owner and the loan servicer regarding the servicer’s funding obligations,” the spokesperson said.

    The Pilevskys bought the now-70-year-old hotel in 1997 with partner Jane Forbes Clark, an heiress of the Clark family that founded the I.M. Singer Co. sewing-machine company and a network of hospitals and outpatient centers in Otsego County, N.Y. They renovated the hotel and added a third tower in 2001. The property was appraised for $176 million during the real-estate boom in 2005, when the owners mortgaged it.

    The Shore Club features 322 rooms, a spa, a Nobu sushi restaurant and several night clubs. Its new tower and renovations were designed by British architect David Chipperfield. Morgans Hotel Group Co. manages it.

    Like other hotels across the globe, the Shore Club has suffered declining occupancy and revenue. Specifically, the hotel posted occupancy of 54% in this year’s second quarter, down from 66.5% a year earlier, according to Morgans. In the same span, its revenue per available room fell 40% to $151.44 from $251.17. LNR reported that the Shore Club had a shortfall of cash in September, generating revenue of $1.3 million to $1.4 million against expenses of $1.7 million.
  2. MattF


    just get a loan mod and all will be well

  3. Prime location. It won't last long if put up for sale.

    And how is Cerberus still afloat after their Chrysler Debacle. These guys are sucking off the tax payer tits big time. Hedge fund my ass. Their funding of monkeys re-election campaign paid off in spades.
  4. I live just 7 blocks from the Shore Club, and I can tell you all that Shore's vacancy rate is soft and will continue to do so except for a few times a yr when we have the Intl Music Conference and a few other special events in town. But it wont be enough for them to stay afloat much longer.

    The owners are in deep trouble.....
  5. S2007S


    keep the positive articles coming.

  6. Everything's fine according to Zhifaga, Clubber and surfer!

    Next week on 'Frontline' is an episode on how the upper east side of Manhattan is going dark.

    I'm not making this shit up. Watch it.
  7. BLSH,

    I have been saying on here since April that things in the NYC area were pretty much back to normal.

    I continue to believe that this "worst recession in 70 years" nonsense is-

    1) Mostly just in the rust belt, California, and parts of the South West and Florida where condo flipping became all the rage.

    2) Hyped beyond belief by the mainstream media.

    I just don't see any signs of recession where I live, and it's been like this since the spring.

    Sure it could get a little "scary" again (like it was from September through February last year). Alot of people I know were fearful of losing their jobs or taking paycuts, but none of that ever materialized.

    Sorry if it doesn't jive with your point of view, but it's the way it is in the NYC area.

  8. Do you realize how many people on Wall Street and in NYC in general lost their jobs in the last year?

    Buddy, you haven't seen anything yet.

    When the global market forces an exit strategy on liquidity upon the U.S., the shit will hit the fan.

    Bank on that.
  9. 1) Yes I know how many people lost their jobs and I feel very bad for them, and their families.

    2) I just saw the S&P move up 65% straight in 7 months.

    3) I agree. Another large market dump is going to come in 2010. But the world governments will be there again to print money, bailout companies, change accounting rules, institute ridiculous stimulus plans, buy mortgages, etc, etc, etc.

    "The problem with betting on the end of the world is that it only happens once."- Art Cashin (Oct 2008)
  10. Thanks for addressing all of my points (not being sarcastic, either).

    I don't think it will be the end of the world; just the end of the world as many people have known it.

    The beauty of math is its resoluteness and clarity.

    The math says we're in a very bad situation that will force dramatic lifestyle compromises on us. Government will exacerbate this by raising taxes and all sorts of fees (it's inevitable).

    The U.S. will be far from alone, as it is export dumping grounds for many nations. They will feel max pain.

    I wouldn't rule out another big 'D' Depression, either, as productivity gains and low wage emerging economies have put the screws to wide swaths of formerly well-paid, high numbers of middle class jobs.
    #10     Oct 20, 2009