A $188 million commercial mortgage-backed securities (CMBS) loan connected to the St. Regis Bal Harbour Resort is being transferred to special servicing, according to Morningstar. The transfer comes as the loan approaches its maturity date next month.
The owner of the property, Al Rayyan Tourism Investment Company (ARTIC), based in Qatar, remains current on its mortgage payments and has an option to extend the maturity date. The resort is located at 9703 Collins Avenue in Bal Harbour.
San Francisco-based Column, the lender, is currently reviewing a request from Al Rayyan for an extension on the loan, Morningstar reported. Tarek El Sayed serves as CEO of Al Rayyan.
Despite maintaining a debt service coverage ratio above breakeven, Al Rayyan’s net cash flow in 2024 reportedly dropped to about half of what it was in 2021. This decline could lead bondholders to scrutinize the situation more closely, according to Morningstar’s analysis.
Al Rayyan’s chairman is Sheikh Faisal Bin Qassim Al Thani, a member of Qatar’s ruling Al Thani family. The company obtained the CMBS loan in 2021 and used part of it to withdraw $44.5 million in equity and pay off a previous $132 million mortgage from London-based Reuben Brothers, which is led by David and Simon Reuben.
The St. Regis Bal Harbour was completed in 2011 and features three 27-story towers with 192 hotel rooms and 205 condominiums. Al Rayyan purchased the hotel portion, located in the center tower, for $213 million in 2014 from Starwood Capital Group, founded by Barry Sternlicht. Since then, Al Rayyan has invested $40 million in renovations.
In 2023, the condo association at St. Regis Bal Harbour Residences filed a lawsuit against Al Rayyan. The complaint alleges building defects, health and safety issues, and financial mismanagement. The association is seeking a comprehensive assessment and remediation of various issues at the complex, according to court records in Miami-Dade Circuit Court.
Additionally, in 2024, Al Rayyan sold its ownership entity for W Miami—a 50-story hotel with 148 rooms in Miami’s Brickell neighborhood—to a joint venture between BH Group and Süzer Group. The sale price was not disclosed.
