Fortress Investment Group has provided a $52.7 million refinancing on the 250-room Sheraton Fort Lauderdale Airport and Cruiseport Hotel just north of Miami in Dania Beach, Florida.
The borrower, Cohen Brothers Realty Corporation, purchased the property in May 2014 for $34.3 million, county records show.
The financing includes a $32.7 million mortgage and pays off $20 million remaining principal balance stemming from a mortgage Angelo Gordon & Company provided the borrower at the time of acquisition.
The borrower is converting the 1825 Griffin Road property into a “Le Meridien” branded hotel. The current 12-story Sheraton closed on June 7th to begin the $30 million renovation, and the new hotel is expected to open in the fall of 2017.
In the greater Miami area nearby, the lodging market is showing signs that the strength of the dollar and a supply-demand imbalance is negatively affecting the area’s hospitality market.
A Kroll Bond Rating Agency (KBRA) report released earlier this month showed the occupancy rate among Miami’s nearly 400 hotels has dipped to 82.5 percent as of April 2016, the lowest it has been since the rate began declining last year following six years of positive growth.
Fortress Investment Group acquired two portfolios of non-performing real estate loans with a combined face value of around €96 million this January. The real estate investment manager had $2 billion assets under management as of March 31, 2016, according to its latest quarterly report.