Marlin Hotel scores $8.4M in financing for expansion

Miami /
Aug.August 27, 2015 12:45 PM

The Marlin Hotel in South Beach has secured $8.415 million in financing to fund the renovation and expansion of the property into a 32-room luxury boutique hotel, The Real Deal has learned.

Grandbridge Real Estate Capital’s Adam Lipkin arranged the loan for MRK Investments, which paid $9.5 million for the 14-room property in April.

MRK plans to add 18 rooms to the historic hotel, and said it is now close to finishing the first phase of improvements. That includes opening a new Asian restaurant, BaZi, to be operated by the team behind Macchialina Taverna Rustica restaurant in Miami Beach, according to a release.

The Art Deco hotel, at 1200 Collins Avenue, was built in 1939 and has roots in the music industry. It was the first hotel owned by Chris Blackwell, who founded Island Records — the label that signed Bob Marley. It also was previously home to a recording studio, where Aerosmith, Jay Z and Pharrell Williams, among others, have recorded their music.

The building was designed by Miami Beach architect L. Murray Dixon, who also worked on The Temple House in South Beach.

Lipkin declined to name the new lender, but said the seven-year loan’s terms include an interest rate of LIBOR plus 2.75 percent with a 3.25 percent floating-rate floor and option for 4.5 percent fixed rate. The loan has a 36-month interest-only period followed by a 25-year amortization over the remaining four years, according to a release.

MRK had received $4.75 million in seller financing when it acquired the hotel. The new loan allows MRK to pay off the seller financing at a discount and refinance the property. It also enables MRK to recoup more than $1 million the company invested on hotel improvements within a few months of the loan closing, according to the release.

“There are still value opportunities in the Miami Beach hospitality market,” Lipkin said in a statement. “A wide gap exists between the current rates offered at high-end boutique hotels compared with the older Art Deco product.”

The project is scheduled for completion in November 2016.

 
 

Related Articles

arrow_forward_ios
Major Food Group's Jeff Zalaznick and the Design District location (iStock)

New York restaurateur Major Food Group to open three concepts in Miami

New York restaurateur Major Food Group to open three concepts in Miami
Pharrell, Eric Birnbaum and David Grutman with a rendering of the hotel (Getty, Linkedin, Goodtime Hotel)

Pharrell, David Grutman partner with developer to launch South Beach hotel

Pharrell, David Grutman partner with developer to launch South Beach hotel
Lord Balfour Hotel

Mezz lender forecloses on Ocean Drive hotel in South Beach

Mezz lender forecloses on Ocean Drive hotel in South Beach
119 Washington Avenue Miami Beach

South Beach office building inks lease for record $92 psf

South Beach office building inks lease for record $92 psf
1568 Washington Ave., Miami Beach (Credit: Google Maps)

South Beach dev site with multifamily, retail hits market

South Beach dev site with multifamily, retail hits market
Michael Shvo and a rendering of the project

Michael Shvo’s proposed Miami Beach tower gets haircut and approval

Michael Shvo’s proposed Miami Beach tower gets haircut and approval
Russell Galbut, Mondrian South Beach

Mondrian South Beach unit owners sue condo association and companies tied to Russell Galbut, alleging securities fraud

Mondrian South Beach unit owners sue condo association and companies tied to Russell Galbut, alleging securities fraud
Steve Witkoff and the Washington Park Hotel (Getty, Google Maps)

Ladder Capital seeks to foreclose on Witkoff’s South Beach hotel

Ladder Capital seeks to foreclose on Witkoff’s South Beach hotel
arrow_forward_ios

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

Loading...