British billionaire investors the Reuben Brothers have acquired the W South Beach hotel for nearly a half-billion dollars.

The London-based Reuben Brothers bought the building and its 348 hotel rooms and managed condo units from New York-based developers RFR and Tricap, which opened the building in 2009 after acquiring the 3.5-acre site at 2201 Collins Ave. in 2004.

The sale, valued at more than $400M, according to a release, brings an end to RFR and Tricap's stewardship of the luxury property. The relationship became temporarily fraught last year when the business partners went head-to-head in a lawsuit as the maturity date on a $157M loan approached.

David Edelstein's Tricap, formerly Tristar Capital, sued RFR in Miami-Dade Circuit Court at the beginning of 2023, seeking to enforce an agreement the partners reportedly reached in which Tricap would buy out RFR's interest in the property for $200M, The Real Deal reported. RFR countersued in New York, claiming Tricap was stalling on its buyout offer and trying to extract better terms on a loan extension.

The two firms dismissed their lawsuits against one another in April 2023 and agreed to extend the loan and remain partners, TRD reported.

The W South Beach now enters a new chapter following its acquisition by David and Simon Reuben. A spokesperson for Reuben Brothers said the firm has no current plans to update or redevelop the property.

The Reuben Brothers have expanded their footprint in South Florida with notable acquisitions like the Chesterfield in Palm Beach, a redevelopment that is expected to come to fruition in early 2025 as The Vineta.

“We are excited to build on the extraordinary success that has already been achieved,” Reuben Brothers principal Jamie Reuben said in a statement. “Our vision is clear: to secure its standing as Miami’s leading global destination, while reimagining its future and delivering an unparalleled luxury experience.”

The deal brings the total property sales executed by RFR in the past five months to over $1.1B as it reckons with distress across its 3M SF-plus New York City portfolio.

In June, RFR sold the office building at 980 Madison Ave. for $560M to former New York City Mayor Michael Bloomberg's nonprofit, Bloomberg Philanthropies. Earlier this month, Rosen's firm, which he co-owns with partner Michael Fuchs, sold a development site in the Gowanus neighborhood in Brooklyn for $160M, TRD reported.

The lucrative property sales have provided RFR with liquidity as it suffers setbacks at some of its other properties.

Last week, a New York Supreme Court judge ruled that Rosen and Fuchs have to pay lenders $18M after defaulting on two mezzanine loans for the office building at 285 Madison Ave., Bisnow reported. The firm is also fighting to keep control of the Chrysler Building, which it ground leases from Cooper Union, an NYC university. The school this month asked a judge to evict RFR from the tower after it stopped making rent payments.