The Real Deal Miami

Ian Schrager buys penthouse at his own Edition Residences

Hotelier scored unit at 30 percent discount from asking price

March 08, 2016 10:30AM
By Sean Stewart-Muniz

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Unit 1405 at the Miami Beach Edition and Ian Schrager

Unit 1405 at the Miami Beach Edition and Ian Schrager

Talk about believing in your own product.

Hotelier Ian Schrager, who developed the Miami Beach Edition, just paid $5.5 million for a penthouse unit at the newly built project.

Unit 1405 had been owned by financier Bruce Berkowitz since the Edition started recording sales on its 25 condos early last year.

Berkowitz is the founder of Fairholme Capital Management, a Miami-based investment advisory firm that deals with funds worth billions of dollars.

He paid $6 million for the 2,268-square-foot residence at the Edition, which boasts floor-to-ceiling windows, bleached teak wood floors and a large rooftop terrace.

But after realizing it would sit empty most of the time, Berkowitz decided to put it in the market, listing agent Toni Schrager told The Real Deal when the unit was first put up for sale in March 2015.

His asking price: $7.8 million, or about $3,439 per square foot.

After the unit languished for nearly a year, Berkowitz was worked down to $2,425 per square foot — a nearly 30 percent discount over what he hoped it would fetch.

Toni Schrager, head of Avatar Real Estate Services and sister-in-law to Ian Schrager, brokered both sides of the deal.

Ian Schrager now joins a star-studded cast of unit owners at the project, which includes ultra-high-net-worth financiers from New York and Bollywood actresses alike.

He co-developed the Edition, built out of the former Seville Hotel at 2901 Collins Avenue, alongside Marriott International. Shortly after the 293-room hotel was completed, Marriott sold it to the Abu Dhabi Investment Authority for $230 million.

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