Crescent buys Colonnade Hotel in Coral Gables for $63M

UPDATED, March 31, 5:45 p.m.

Crescent Real Estate is planting a flag in South Florida, acquiring the Colonnade Hotel in Coral Gables for $63 million.

The Dallas-based real estate development and investment firm is the buyer of the property at 180 Aragon Avenue, according to three sources familiar with the transaction, including Crescent’s partner in the deal. The hotel operates under Marriott’s Autograph Collection brand.

Crescent paid roughly $401,000 per room. Its joint venture partner, Houston-based private equity firm Sage Street Equity Partners, confirmed the transaction on its website. 

The seller, publicly-traded Pebblebrook Hotel Trust, disclosed the deal — without identifying the buyer — in a recent filing with the Securities and Exchange Commission.

Christopher Exler and Pamela Vasquez of JLL represented Pebblebrook.

Executives for Crescent, led by chairman John Goff, and Pebblebrook’s CFO Raymond Martz did not respond to requests for comment. 

In 2014, Pebblebrook paid $43.1 million for the 157-room building when it operated as a Westin-branded hotel. Two years later, Pebblebrook spent $18 million renovating the Colonnade. In 2019, the property switched to the Autograph Collection banner.

Last year, the Colonnade had a net operating income of $4.1 million, and hotel earnings before interest, taxes and other deductions of $4.8 million, the SEC filing states.

Completed in 1926, the Colonnade was designed in the Beaux Arts style by architect Phineas Paist. The building was originally developed as a sales center for Coral Gables founder George Merrick’s development projects. In 1989, the property was converted into a hotel after going through several other uses between the 1930s and 1980s. 

Pebblebrook, a Maryland-based real estate investment trust led by CEO John Bortz, owns 49 resorts and hotels with about 12,500 rooms in 14 markets, including Florida. 

Crescent owns roughly $4.5 billion in offices, multifamily, hospitality and senior living properties, according to the firm’s website. Crescent is also developing projects worth a combined $500 million. The Colonnade is the firm’s second Florida property. It owns the Westshore Grand Hotel in Tampa. 

In December, Crescent sold a Dallas office high-rise for $400 million. Also last year, the firm raised $265 million from private investors to be used as equity for new projects. 

Other recent South Florida hotel deals include the $17 million acquisition of a Coral Springs Marriott-branded hotel by Michigan-based hoteliers Malik Abdulnoor and Sahir Malki Abdulnoor.

Last month, New York-based firms Blue Suede Hospitality and MCR paid $40 million for two South Beach hotels, and $118.3 million for a Miami Hilton-branded hotel, respectively.