CLIENT NEWS: Lionstone, Flag Luxury and Ben-Josef land $61M loan for Ritz-Carlton South Beach
September 23, 2025Lionstone Group, Flag Luxury Group and Ben-Josef Group scored a $61.2 million predevelopment loan for their planned Ritz-Carlton Residences, South Beach project, The Real Deal has learned.
BHI, the U.S. branch of Israel’s Bank Hapoalim, is providing the financing, according to a press release. The developers received approval for the project at 1671 Collins Avenue in 2023. The plans include the construction of a new 15-story, 30-unit condominium and the redevelopment of the 101-key Sagamore Hotel into a 55-room Ritz-branded hotel.
The design team includes Kobi Karp Architecture & Interior Design, Studio Munge and landscape firm Naturalficial. Units will span between one and five bedrooms, with two penthouse options. Amenities in the complex will include pools, a beach club, library, theater, fitness center, sculpture garden and access to the Sagamore Hotel facilities. The hotel will also have a restaurant by Michelin-starred chef José Andrés, according to marketing materials.
Douglas Elliman’s Eklund-Gomes team is leading sales. Prices start at $4.3 million, and the penthouses hit the market asking $69 million and $52.5 million in April, or $125 million to combine the two, according to Mansion Global. Marketing brochures show the project is slated to finish in 2027.
The Lowenstein family’s Miami-based Lionstone Development is helmed by CEO Diego Lowenstein. Paul Kanavos is chairman and CEO of New York-based Flag Luxury. Ronny Ben-Josef heads the New York-based Ben-Josef Group.
Ben-Josef partnered with InSite Group to buy the Sagamore for $63 million in 2016, and InSite later sold Ben-Josef its stake. In 2020, Ben-Josef, Lionstone and Flag Luxury merged their ownership of the Sagamore, the Ritz South Beach and the Ritz-Carlton Bal Harbour.
BHI has been pumping cash into projects across South Florida. In June, it was one of the lenders that provided Craig Robins’ Dacra $125 million in financing for planned Miami Design District apartments. Last year, it provided Naftali Group a $35 million pre-development loan for its mixed-use condo and rental tower at Miami Worldcenter.’
