1621-4 Royale Group The Carlyle Hotel is one of seven Art Deco hotels that N.W. Residential
Mortgages Corp., a California-based lending company, foreclosed on in
November. The Royale Group lost the properties when the man who ran the
company, Leonard Pelullo, was indicted for racketeering.
Because the Carlyle is owned by a financial institution, some industry
experts have speculated that the lender may want to close the restaurant to
spruce it up and sell it.
Generally, when a financial institution forecloses on a property, its
first priority is to sell it. And selling a property can sometimes be easier
when no sublets, such as the restaurant, are attached to it, said Jose
Fernandez, a Miami Beach investor who specializes in hotel negotiations.
"They may be shutting down because of the slow season, " Fernandez said.
"Or they could be feeling pressure from the new owners because they want to
sell it."
William Crenshaw, attorney for N.W. Residential Mortgages Corp., said the
Ili company is developing a marketing plan to sell the Carlyle and the other six
hotels. He would not say whether the Grill's closing had anything to do with
that plan.
Borenstein, who said that repairs may include remodeling some interior
parts of the restaurant, remains confident the restaurant will reopen this
fall.
"No doubt about it," Borenstein said. "We'll still be around."
TAG: 9102050090
16 of 283, 4 Terms
mh ROYALE GROUP'S 11/20/1990
THE MIAMI HERALD
Copyright (c) 1990, The Miami Herald
DATE: Tuesday, November 20, 1990 EDITION: FINAL
SECTION: BUSINESS PAGE: 5B LENGTH: 45 lines
ILLUSTRATION: map: Royale Group Properties
SOURCE/CREDIT LINE: GREGG FIELDS Herald Business Writer
OR '�!ICS ROYALE GROUP'S
C t
tX�� HOTELS AUCTIONED
U The sagging South Beach hotel empire of Leonard Pelullo and his Royale
0\ Group was largely auctioned off Monday morning on the steps of the Dade County
(140) Courthouse.
A larger-than-usual crowd showed up for the foreclosure auction of five
Art Deco hotels and the site of thq demolished Senator. Under a grueling sun,
and over the din of a nearby construction crew and jets set to land at Miami
\\13' International, there was just one bid.
, ,�v(\' "N.W. Residential Mortgage Corp. bids $9.95 million, " said Miami attorney
(� William Crenshaw, representing the company that holds the main mortgage on the
1 properties.
Ilr21 The other potential bidders, who had hoped for a bargain, quickly
conceded defeat, like poker players folding
their cards.
"You outbid me, " said one.
"Guess my $6 million won't do it, " said another.
The hotels sold were the Carlyle, the Cavalier, the Cardozo, the Leslie,
the Victor, the Flambeau and the S l endor. The sale also included the site of
the razed Senator.
a .