Historic downtown Miami building to become hotel

Miami /
Dec.December 11, 2015 12:45 PM

The new owners of a historic downtown Miami office building have plans to convert the property into a hotel. 

Dream Downtown LLC, a joint venture between a sister fund of Paris-based Beekman REIM and Immocorp Capital, paid $9.2 million for the seven-story Dade-Commonwealth building, at 139 Northeast First Street in November.

For the next 18 months to two years, the owners will keep it as is, Gilbert Benhamou of Immocorp Capital told The Real Deal. “We want to revamp this whole area,” he said.

Benhamou said the property, when it was developed in 1925, was the tallest at 17 stories. It was severely damaged in the 1926 Miami hurricane, and instead of restoring it, the owners at the time cut the building’s height to seven stories.

“We intend to bring back the building to where it was before,” he said. That would include the addition of multiple stories.

Benhamou declined to comment on whether the property would become a Dream hotel, but did say that “most of the good food and beverage from South Beach is moving downtown.” In South Florida, Dream Hotels has one property at 1111 Collins Avenue: Dream South Beach.

The LLC financed the sale with a $7.35 million bridge loan, records show. David Eyzenberg and Amanda Saltzman, of Avison Young’s joint venture and structured capital team, secured the financing.

In a statement, Eyzenberg said it was challenging to secure the loan because the property had not obtained a 40-year recertification, “which precluded obtaining a clean title and left ambiguity on the scope of renovation that may be required by the local municipality.” Yet his team was able to identify a non-recourse lender familiar with the location, he said. Miami-Dade County records show Calmwater Real Estate Credit Fund II LP as the lender.

The building is in the Flagler area of downtown, which is in the midst of a transformation. Developer Moishe Mana has spent more than $200 million in the area, with plans for retail, office and residential. Other investors, such as Danny Lavy and Daniel Pena, have also joined in. The county has also funded part of a $13 million improvement plan for Flagler Street that will include expanded sidewalks, more trees, new benches and bicycle racks.


Related Articles

arrow_forward_ios
Renderings of the approved tower
Lions Group NYC buys downtown Miami dev site to build apartment tower
Lions Group NYC buys downtown Miami dev site to build apartment tower
The Holiday Inn at 340 Biscayne Boulevard in Miami and attorney Linda Worton Jackson
Bankruptcy could lead to redevelopment of downtown Miami Holiday Inn
Bankruptcy could lead to redevelopment of downtown Miami Holiday Inn
Black Lion CEO Robert Rivani with SLS Lux Brickell (LinkedIn via Rivani, Facebook via SLS Lux Brickell)
Black Lion buys SLS Lux Brickell retail condo for $14M
Black Lion buys SLS Lux Brickell retail condo for $14M
Landlords keep raising office space rents despite a grim outlook for vacancy rates (Getty)
Miami office vacancy rates reach Great Recession levels
Miami office vacancy rates reach Great Recession levels
Related CEO Jorge Pérez, President Jon Paul Pérez and the waterfront property (Related, CBRE)
Mexican firm buys former Related Group downtown Miami HQ for $24M
Mexican firm buys former Related Group downtown Miami HQ for $24M
Monarch Alternative Capital CEO Michael Weinstock and Citigroup Center (Getty, Citigroup Center)
Here’s what tenants pay at Downtown Miami’s Citigroup Center
Here’s what tenants pay at Downtown Miami’s Citigroup Center
Moishe Mana and the downtown parking lot he purchased (Google Maps, Getty)
Moishe Mana expands downtown Miami assemblage with $12M purchase
Moishe Mana expands downtown Miami assemblage with $12M purchase
Steven Witkoff and 700 North Miami Avenue (Google Maps)
Witkoff, Monroe pay $94M for site of canceled Marriott hotel at Miami Worldcenter
Witkoff, Monroe pay $94M for site of canceled Marriott hotel at Miami Worldcenter
arrow_forward_ios

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

Loading...