Russell Galbut, Saul Gross sell South Beach buildings to Lightstone Group: $29M

Miami /
Jun.June 28, 2016 11:20 AM

David Lichtenstein’s Lightstone Group just paid $29 million for nearly an entire block on Washington Avenue that includes plans for a new hotel. 

Crescent Heights developer Russell Galbut and Saul Gross sold the properties from 915 to 955 Washington Avenue in Miami Beach, on the east side of the street.

Galbut sold two properties, 947 and 955 Washington Avenue, for $6 million each. They total 9,235 square feet of retail space and 13,000 square feet of land. Property records show 947 Washington Avenue last sold for $120,000 in 1986, while 955 last sold for $2.1 million in 2014.

Galbut received approval in March to build a seven-story, 63-room hotel on the properties. Lightstone told Boutique Hotel News last week that it would launch a Moxy by Marriott hotel in South Beach, but did not specify where.

In the micro-hotel market, Moxy Netherlands-based CitizenM focus are among the biggest players that have focused on the millennial traveler with smaller rooms and more amenities. “The micro-hotel segment is really interesting because it allows you to stay in the heart of Miami Beach at an affordable price point,” Miami Beach developer Andrew Joblon previously told The Real Deal.

Grand Trine Limited Partnership, managed by Gross, sold the 22,030-square-foot building at 915, 917, 919, 921, 923 and 925 Washington Avenue for $17 million. It last traded for $1.17 million in 1990. Gross is the founder of Streamline Properties and is a former Miami Beach commissioner.

The buildings were built between 1936 and 1942. They total 31,265 square feet of retail, which breaks down to $928 per square foot.

Investors are banking on Washington Avenue’s potential. The street’s new wave of redevelopment comes amid the city’s approval of new measures that are designed to increase hotel space and retail and dining opportunities on the street, which lags far behind Lincoln Road and Ocean Drive in attracting first tier retail, dining and hotel venues.

Developers Joblon of Washington Squared LLC and New York-based Imperial Companies are planning a seven-story hotel with 312 units at 601-685 Washington Avenue. And new restaurants announced for the area include Piola, Spring Brothers Irish Pub, and Cubiche 105.

Lightstone, a New York-based real estate investment firm, financed the deal with a $19 million loan from Mexican bank Banco Inbursa, which is backed by billionaire Carlos Slim.

Lightstone owns multifamily apartments, office buildings, hotels, shopping centers and industrial properties throughout the U.S. and Canada. One of Lightstone’’s most profitable ventures began in 2002 with the acquisition of Prime Outlets, a Puerto Rico-based outlet mall.


Related Articles

arrow_forward_ios
From left: Shadi Shomar, Russell Galbut, Renata and Cesar Giovannini with 510 Ocean Drive (Arte Hospitality, Lynx Property Services)
Arte Hospitality completes buyout of Ocean Drive condo-hotel, scores loan
Arte Hospitality completes buyout of Ocean Drive condo-hotel, scores loan
Russell Galbut with 1690 Collins Avenue
Russell Galbut scores approval for Art Deco hotel renovation
Russell Galbut scores approval for Art Deco hotel renovation
Russell Galbut and a rendering of the proposed Gale South Beach Hotel upgrade (Studio Mc+G Architecture, Getty)
Russell Galbut wants to heighten South Beach hotel, add rooms
Russell Galbut wants to heighten South Beach hotel, add rooms
Russell Galbut, Ballot
Miami Beach voters approve upzoning referendums
Miami Beach voters approve upzoning referendums
Russell Galbut in front of 1030-1050 Sixth Street in Miami Beach (LoopNet, GFO Investments)
Russell Galbut buys dev site near Five Park in South Beach, plans hotel
Russell Galbut buys dev site near Five Park in South Beach, plans hotel
Finvarb's Ronny Finvarb and 1685 Washington Avenue (Finvarb Group, Google Maps, iStock)
Finvarb JV scores $45M in financing for Miami Beach Thompson Hotel-anchored project
Finvarb JV scores $45M in financing for Miami Beach Thompson Hotel-anchored project
From left: BentallGreenOak's co-CEOs John Carrafiell and Sonny Kalsi (sellers); East End Capital's managing principals Jonathan Yormak and David Peretz (sellers); and The Davis Companies' founder and CEO Jonathan Davis in front of 555 Washington Avenue in Miami Beach (East End Capital, BentallGreenOak, The Davis Companies, LoopNet, iStock)
East End, BentallGreenOak sell South Beach office building for $52M
East End, BentallGreenOak sell South Beach office building for $52M
 Rendering of Nema Miami with Russell Galbut and Bruce Menin (Crescent Heights)
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
Russell Galbut’s Crescent Heights scores $224M loan for Whole Foods-anchored Edgewater project
arrow_forward_ios

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

Loading...