The Real Deal Miami

Gansevoort South hotel reverts to lenders

January 29, 2010 12:15PM

After failing to find a buyer for an $89 million loan, the owners of the ambitious Gansevoort South turned over the Miami Beach hotel to an affiliate of Credit Suisse, which took possession of the 334-room development when no bidders for the debt emerged at a New York auction. Credit Suisse is expected to sell the hotel, which owner Michael Aschenbaum had marketed as a condo-hotel conversion. Aschenbaum said operations will not be affected as his company still holds the management position at the hotel, nor will the original Gansevoort hotel in New York’s Meatpacking District see changes as a result of the loss of its southern counterpart. Gansevoort South also has a $309 million first mortgage. [Miami Herald]