Michael Shvo, the once-high-flying New York developer, crashed to Earth on glam South Beach, Miami, boulevard Collins Avenue.
Shvo was forced to unload the iconic Raleigh Hotel to Nahla Capital for $270 million this month, Bloomberg first reported. The project was beset by slow condo sales, stalled construction and a looming, $190 million mortgage payment.
Shvo and his partners bought the site for $219 million in 2019, planning to spend $1 billion including the purchase price to restore the Raleigh to its original splendor and convert rooms to luxury condos. But the landmark property has been a derelict eyesore in the midst of Collins Avenue’s row of glamorous Art Deco hotels for years.
Manhattan-based Nahla’s portfolio includes the Rosewood Residents in Beverly Hills, 152 Elizabeth St. in NoLiTa and 1122 Madison Ave. The last is a ground-up condo tower at East 84th Street with 26 luxury units.
Shvo’s spokesman said he had “no comment at this time.”
Shvo has been a polarizing figure for decades. The dashing, Israeli-born entrepreneur was a rising star at residential brokerage Douglas Elliman in the early aughts, but a vicious feud with rival superbroker Dolly Lenz earned him the moniker of “the most loathed broker in New York” in New York Magazine. (Shvo later left the company).
Shvo’s charismatic personality charmed lenders but sometimes overwhelmed others. At a 2007 forum at Avery Fisher Hall, sponsored by the Real Deal, the moderator, who was this reporter, struggled to keep Shvo from talking over other participants such as Related Companies founder Stephen M. Ross and City Planning Commissioner Amanda Burden.