Art Deco apartments in South Beach to be converted to short-term rentals

$2.2M deal marks a profit from its last sale of $1.6M in 2015

TRD MIAMI /
Jun.June 06, 2016 03:00 PM

A boutique apartment building in South Beach has a new owner and a new purpose: the 10-unit Art Deco building was sold to a Spanish investment group that will convert the property to short-term rentals.

West Avenue Deco Apartments LLC sold the building at 1443 West Avenue for nearly $2.2 million, MSP Group told The Real Deal. MSP Group principals Deme Mekras and Elliot Shainberg represented the seller, who they declined to disclose. The deal closed on Tuesday.

The Miami-based LLC, which is controlled by attorney George Befeler, paid $1.6 million for the 6,100-square-foot building in February 2015 and put the property on the market in December for $2.4 million.

“The property sits in the West Avenue Bayfront Overlay District, which allows properties in this zone to operate under the city’s Suite Hotel designation,” Mekras said in a press release.

Built in 1936, the building includes two studio apartments, four studio units with dens, and four one-bedrooms. The new owner will be applying to change the current use from multifamily to suite hotel, and will operate the building as a vacation rental, according to the release.

Operating short-term rentals in place of long-term apartments is appealing to investors looking to increase their profits. And websites like Airbnb, HomeAway and VRBO could  impact the availability of workforce and affordable housing, especially in Miami Beach.

At an April panel covering the impact of Airbnb on the hotel industry, city manager Jimmy Morales said home-sharing websites “used to be more of a quality of life issue … Now it’s grown to an economic issue as well.”


Related Articles

arrow_forward_ios

Condo at Glass Miami Beach sells at 15% loss

Miami Beach Mayor Dan Gelber and Natalie Nichols home at 1531 Stillwater Drive (Credit: Getty Images)

Miami-Dade judge strikes down Miami Beach short-term rental ban

Daily Digest Miami

Soffer in talks to buy Diplomat resort in Hollywood, 1-800 PetMeds founder sells Miami Beach house: Daily digest

Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty

Two South Beach hotels hit the market for $42M

Greg Mirmelli’s vacation rental property at 2120 Bay Avenue in Miami Beach

Renter sues for $57K refund linked to illegal Miami Beach short-term rental

From left: Santiago Vanegas, Harvey Hernandez, David Arditi, and Russel Galbut

In a sluggish condo market, these Miami developers find a sweet spot

From left: Jay Roberts, Keith Menin andRussell Galbut

Russell Galbut, Keith Menin ink deal with short-term rental operator Domio

Domio CEO Jay Roberts and the Monte Carlo at 6551 Collins Avenue in Miami Beach

Short-term rental operator Domio enters South Florida market

arrow_forward_ios