Nahla Capital was defeated after Miami Beach commissioners voted against the developer’s plan to add more square footage to the Raleigh development. Then, hours later, commissioners reconsidered and voted to move the item forward on first reading.
Two comprehensive plan and code amendments would allow the developer to increase the floor area ratio to 2.5 from 2.0, adding more than 66,000 square feet to the project via two additional floors of the residential tower.
New York-based Nahla, led by CEO Genghis Hadi, went before the Miami Beach Planning Board this summer regarding the proposal. Hadi has said the project will require about $1 billion dollars of investment. He spoke at Wednesday’s commission meeting, alongside his attorney, Alfredo Gonzalez of Greenberg Traurig.
“I’m very conflicted on this, so it’s going to be really tough to get me to a yes on second reading, not impossible, but very tough,” said Commissioner Monica Matteo-Salinas, who initially voted against. “But I’m open, and again, very conflicted…. I appreciate the process, and I’m willing to meet with groups involved. Get your hopes up, but not too far.”
Commissioner David Suarez was the sole no vote. The commission will vote again on second reading in November.
Laura Dominguez, item sponsor Joe Magazine and Alex Fernandez voted for the proposal both times. Mayor Steven Meiner, Suarez and Matteo-Salinas voted against initially. The items required a six-of-seven approval.
The developer agreed to provide $1.2 million in infrastructure improvements, and to have a temporary certificate of occupancy by the end of 2031, assuming a Historic Preservation Board approval by early next year.
A year ago, Nahla acquired the 3-acre oceanfront assemblage at 1775, 1757 and 1751 Collins Avenue in October for $270 million, taking over from developer Michael Shvo and his partners.
Nahla is the fifth owner of the Raleigh over the past 15 years, and the iconic hotel has been closed since 2017, when it was owned by Tommy Hilfiger and his partners.
If the developer secures final approval for the amendments, the square footage would total just over 332,000 square feet. As approved in 2020, the developer can build 84 residential units and 86 hotel rooms, but instead plans to build 52 condos and fewer than 80 hotel rooms. Shvo and his partners, the previous owners, planned 44 condos.
The iconic Art Deco-designed Raleigh, known for its pool, was designed by L. Murray Dixon, and has been gutted alongside the Richmond and South Seas structures.
The new project also calls for a private members’ club and a hotel component, originally designed by Peter Marino and Kobi Karp Architecture & Interior Design.
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