South Florida report

Setai sells for $90M

The Nakash Family, founders of the Jordache Jeans empire, purchased The Setai Hotel in South Beach from Lehman Brothers Holdings Inc. for nearly $90 million.

The famed fashion clan already counts Casa Casuarina — formerly known as the Versace mansion — as well as several boutique hotels including Hotel Victor and Thompson Ocean Drive, in its Miami Beach hotel portfolio. The family purchased Casa Casuarina at auction in September 2013 for $41.5 million.

“The Setai is the jewel of Miami,” a Nakash family representative said. “We plan to increase the level of service and operate to the highest standard of luxury.” 

The Setai was built in the 1930s and then redesigned in 2004 by Jean Michel Gathy and Jaya Ibrahim. The duo also designed the adjacent 40-story condo tower completed the same year. Miami-Dade public records show that prior to the deal, the Nakash family owned more than 10 units in the tower.

EB-5 at risk?

The pool of foreign investors looking to secure permanent U.S. residency through the EB-5 program could dry up, impacting investment in South Florida, experts say. A State Department official warned that U.S. Immigration and Citizens Services would likely run out of the 10,000 special visas earmarked for fiscal year 2015 by mid-summer.  

While state-by-state data on the visas is not available, Lauren Cohen, the founder of a consultancy specializing in EB-5 visas, said that South Florida is one of the busiest regions for EB-5 investment. Cohen told The Real Deal a backlog of EB-5 visa applications could lead to a drop in foreign investments in South Florida and other booming real estate markets. 

Cohen said a delay of any kind could be a major setback for the industry. “A backlog might create a domino effect of problems.”

Compass points south

Gene Martinez

Urban Compass is making like a snowbird and heading to South Florida this winter. Gene Martinez, formerly of the Corcoran Group, will lead the technology-driven brokerage’s expansion into Miami. Martinez, who grew up there, was named director of sales and business development for both Miami and Washington, D.C.

Founder and CEO Robert Reffkin said that Miami’s status as one of the fastest-growing U.S. markets and a global hub for foreign investment made the area critical to the firm’s national efforts. “We will look to build our Miami presence with a disciplined approach to high-level recruiting and the development of superior technology and marketing solutions,” he said.

While Urban Compass has poached some top broker talent in New York City — including Martinez — it’s not yet clear whether its caché as the hot new upstart in town will translate down South. No additional hires have been made.