clock menu more-arrow no yes mobile

Filed under:

W South Beach's Tragic Flaw: Its Big-Ass Mortgage

New, 3 comments

Curbed realizes she prefers the Setai, but if Lindsay Lohan were a South Beach hotel, she would more likely be the W Hotel Hotel & Residences -- a seductress for sure but oh what a train wreck.

First, it was a gaggle of prostitutes beating the hell out of a South Jersey vacationer they mistook for competition. The victim sued the W in June, seeking more than $150,000 in damages.

Now, lenders are threatening to seize the 216 unsold units and the common areas in the 408-unit, 20-story condo-hotel at 2201 Collins Ave. Hypo Real Estate Capital Corp., an affiliate of a German lender, filed a foreclosure lawsuit Oct. 11 against the units' owner, 2201 Collins Fee LLC.

No one's bought at the W for months, not even the double unit Zaha Hadid listed for $5.7 million in August. The slowdown in sales could make it difficult to service the German affiliate's $386.8 million mortgage. It can be psychologically trying to watch something beautiful come undone. But don't worry; we'll monitor developments so you don't have to. -- Emily Schmall

UPDATE: David Edelstein wrote to Curbed on behalf of W South Beach to say that the lion's share of the loan, namely $310 million, has been repaid to Hypo Bank of Germany. "W South Beach is finalizing the refinancing of the remaining $60 million loan balance," Edelstein said. Why then would Hypo Bank sue for foreclosure? The plot thickens....

· W South Beach Hit With Foreclosure [SFBJ]
· In Hopes Of Upgrading, Zaha Hadid Lists $5.7M Double W Unit [Curbed]