MIAMI Morgans Hotel Group Co. has turned over a shuttered hotel in South Beach in a deed-in-lieu-of-foreclosure transaction that frees the company of about US10.5 million in mortgage debt.
The property—a boarded-up building across the street from Delano Hotel—was acquired by Morgans in 2006 for US$14.3 million. Morgans had planned to renovate the property and reopen it, but the project never got off the ground.
The property has been transferred to SU Gale Properties LLC, an affiliate of Crescent Heights of America. The transfer is not expected to result in a material gain or loss for Morgans.