The Real Deal Miami

New Yorker buys the Palace Bar building on Ocean Drive for $15M

Mixed-use building is home to the prominent gay bar

July 18, 2016 09:45AM
By Katherine Kallergis

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The Palace at 1200 Ocean Drive in South Beach

The Palace at 1200 Ocean Drive in South Beach

Steve Kassin’s Infinity Real Estate just paid $15.25 million to acquire a mixed-use building on Ocean Drive in South Beach. 

Records show an affiliate of Infinity bought the building at 1200 Ocean Drive, home to the prominent gay bar and restaurant called the Palace. And the seller is 1200 Ocean Associates Ltd., which is tied to Goldman Properties. Jessica Goldman Srebnick, CEO and principal of Goldman, signed the deed transfer of ownership.

The seller paid only $675,000 for the property in 1986, records show. Built in 1958, the three-story building includes 31 residential apartments and sits on a 7,322-square-foot lot. The Palace is known for its weekend drag shows and brunch.

Kassin financed the deal with a $10.68 million mortgage from DB Private Wealth Mortgage.

The property isn’t the first in South Florida for Infinity. Last year, Infinity bought the Johnny Rockets building at 728 Ocean Drive for $12.4 million, and earlier this year paid nearly $5 million for a retail condo space at Paramount Bay on Biscayne Boulevard. All-in-all, Infinity has invested $125 million into South Florida real estate, according to a spokesperson.

“Similar to our other SOBE property at 728 Ocean Drive, our plan for 1200 Ocean Drive is to preserve and enhance the property, including improving the building’s prominence and accessibility,” David Berg, investment director at Infinity Real Estate, said in a statement.

Miami Beach Mayor Philip Levine said last week that he plans to propose an ordinance restricting alcohol sales on Ocean Drive. While the ban would not affect indoor bars and nightclubs, it would effectively shut down large nightclub and restaurants like Mango’s Tropical Café, Wet Willies and the Clevelander after 2 a.m.