Despite their appeal, many of the most popular Miami Beach condos have to pay the bills and the struggles some of them have had to face have not gone unnoticed. The Gansevoort for example has seen a few problems such as lawsuits and now the equally popular Mondrian South Beach has to take care of its financials. In this case however, the news isn’t quite as concerning as that of the Gansevoort.
The existing mortgage for the Mondrian South Beach has now been extended for an additional seven years until April 2017. Originally, Morgan Hotel Group (one of the Mondrian’s joint venture partners) obtained a $124 million mortgage, $70 million of which remains outstanding. Under this mortgage, the owners are now allowed to fund a maximum of eighty percent of the purchase to whoever decides to purchase one of the Miami Beach condos within the building.
The decision to extend the mortgage for the Mondrian South Beach makes it one of the few Miami Beach condos and/or hotels where the lender actually sees a positive long term future. It may end up being one of the condo-hotels that manages to survive the shaky Miami Beach condo market as it continues the tough road to recovery.