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
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
David Grutman and Pharrell’s Goodtime Hotel in South Beach scores $164M refi
Renderings of the project Courtesy of Pebb Capital
JV plans high-end offices at old Bancroft Hotel in South Beach
JV plans high-end offices at old Bancroft Hotel in South Beach
David Grutman and Pharrell’s Goodtime Hotel had received nearly 30 noise violations (Carma Connected, Getty)
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Too much of a good time? David Grutman and Pharrell’s Goodtime Hotel could lose entertainment permit
Developers David Martin, Russell Galbut and renderings of the project.
David Martin and Russell Galbut start sales of Five Park condo tower in South Beach
David Martin and Russell Galbut start sales of Five Park condo tower in South Beach
1260 Washington Avenue and 1234 Washington Avenue with Location Ventures CEO Rishi Kapoor (Google Maps, Location Ventures)
Location Ventures buys South Beach office, retail property for $20M
Location Ventures buys South Beach office, retail property for $20M
Major Food Group partners Rich Torrisi, Jeff Zalaznick and Mario Carbone over Miami/Miami Beach (Getty, iStock)
Major plans: Major Food Group to open four more restaurants in Miami, Miami Beach
Major plans: Major Food Group to open four more restaurants in Miami, Miami Beach
Russell Galbut and a rendering of the project (Studio MCG Architecture)
Russell Galbut wants to turn South Beach hotel and adjacent building into offices and restaurants
Russell Galbut wants to turn South Beach hotel and adjacent building into offices and restaurants
The Goodtime Hotel with Pharrell Williams and (from top) David Grutman, Michael D. Fascitelli and Eric Birnbaum (Getty, Alice Gao)
Pharrell’s Goodtime Hotel opens in Miami Beach
Pharrell’s Goodtime Hotel opens in Miami Beach
arrow_forward_ios

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

Loading...