Portman Holdings to develop $405M convention center hotel

Miami /
May.May 21, 2015 09:45 AM

The revamped plan for a new convention center hotel in Miami Beach cleared another hurdle on Thursday when the Miami Beach City Commission voted 6-1 to authorize lease negotiations with Atlanta-based developer Portman Holdings to build the project.

Earlier this month, Portman revealed it would develop a 300-foot-tall, 800-room convention center hotel on the site of the Fillmore Miami Beach’s parking lot. The hotel would also feature 95,210 square feet of meeting space, 320 parking spaces, a fitness center, spa, business center, and five food and beverage establishments.

Following the meeting, Jack Portman, the company’s vice-chairman, said the city is getting an experienced partner that is privately financing the entire $405 million project.

“The city of Miami Beach is entrusting us to create an iconic Convention Headquarter Hotel and we are prepared to deliver,” he told The Real Deal. “Portman Holdings will work closely with the city to finalize an agreement that will bring significant economic and community benefits.”

Portman said the hotel will act as a gateway that connects the city’s soundscape park next to the New World Symphony to a new park promenade being planned for the Miami Beach Convention Center campus, which includes the Fillmore.

No one from the public spoke out against the project and Miami Beach elected officials expressed confidence in Portman’s ability to build the hotel. Commissioner Jonah Wolfson was the sole dissenting voter. “I think we are fortunate to have Portman,” said Mayor Phillip Levine.

The company was the only contender left at the end of the bidding process after another firm was disqualified because it proposed using public money to build the hotel. Portman’s vice-chairman assured commissioners the project will be primarily financed with a private $162 million construction loan, $145 million from an institutional investor, and $17 million in equity.

The details of the 99-year lease and development agreement still has to be hammered out by Portman and City Manager Jimmy Morales. The deal will also require final approval from 60 percent of Miami Beach voters in November.

In a related action, the city commission also awarded an $18 million contract to manage the $500 million renovation of the convention center. Now, Clark Construction will work with city staff and design firm Fentress Architects to create construction documents and price them during the next five months.

“We have to determine once and for all if the design that we have can be built in the $500 million budget we have set,” said Maria Hernandez, the city’s project director for the convention center district. “We have every reason to believe it will be, but we have Clark to confirm that.”

If Clark and the city can agree the project can be built with $500 million, the company could start putting out bids to subcontractors by the fall. The city wants to break ground on the renovation this December after Art Basel.

In 2013, the city had selected South beach ACE, which included Dutch architect Rem Koolhaas, to lead a $1.1 billion renovation that featured a hotel suspended over the convention center, with a park and residential/retail component. However, the deal quickly turned political during the city elections that year. A campaign to kill the project succeeded in having the proposal thrown off the ballot.

In January 2014, a new city commission led by Levine scrapped that plan and started from scratch.


Related Articles

arrow_forward_ios
Montford Group' Sunju Patel and Opterra Capital Glenn Alba with 2940 Collins Avenue (Montford Group, Getty)
Montford, Opterra JV buys Hilton Garden Inn Miami Beach for $28M
Montford, Opterra JV buys Hilton Garden Inn Miami Beach for $28M
Joseph Chetrit and The Tides South Beach (Getty, The Tides South Beach)
Chetrit’s lender scores victory in South Beach hotel foreclosure
Chetrit’s lender scores victory in South Beach hotel foreclosure
100 Fairway Drive, Deerfield Beach with Ally Visram and Howard Wurzak (Wurzak Hotel Group, Google Maps)
Wurzak buys Deerfield Beach DoubleTree for $27M
Wurzak buys Deerfield Beach DoubleTree for $27M
Allied Partners' Eric Hadar and RH's Gary Friedman with the Savoy hotel (Allied Partners, Getty, Google Maps)
Inside RH’s plans for $100M renovation of Miami Beach hotel
Inside RH’s plans for $100M renovation of Miami Beach hotel
Moto Capital Group's Marcos Lima with 350 Ocean Drive (Loopnet, LinkedIn, Getty)
Toronto firm picks up Ocean Drive hotel for $39M
Toronto firm picks up Ocean Drive hotel for $39M
Red South Beach at 3010 Collins Avenue, Tom Assouline and August “Gussie” Busch (Instagram/gussiebusch, Google Maps, Getty)
Busch family partners with Assouline Capital to buy Red South Beach hotel
Busch family partners with Assouline Capital to buy Red South Beach hotel
Electra America's Joe Lubeck with rendering of Southplace City Center (Electra America)
Electra America JV plans $1B mixed-use redevelopment of Southland Mall
Electra America JV plans $1B mixed-use redevelopment of Southland Mall
Allied Partners founder Eric Hadar and The Savoy Hotel & Beach Club at 425 Ocean Drive (Google Maps, Getty)
Investor seeks $50M for allegedly botched Ocean Drive hotel repairs
Investor seeks $50M for allegedly botched Ocean Drive hotel repairs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...