Sagamore Hotel’s new owners take out $45M mortgage

Miami /
Oct.October 31, 2016 12:00 PM

The Sagamore Hotel’s new owners Fort Lauderdale-based InSite Group and New York-based EL Group took out a $45 million mortgage on the oceanfront South Beach property.

Records show EBJ/InSite, the joint venture entity that purchased the hotel for $63 million in April, received the funding from Bank Hapoalim. Ben Shmul, CEO of InSite signed the loan documents.

InSite and EL bought the Sagamore at 1671 Collins Avenue in Miami Beach from Sagamore Partners days before $41 million in debt and interest payments were due. The Sagamore’s late owner Martin Taplin died on March 8.

At the time of the purchase, the buyers said they would make physical improvements to the property.

The 93-room hotel, originally built in 1948, encompasses 92,000 square feet on a 43,125-square-foot site, according to Miami-Dade property records. The five-story property last sold for $315,000 to Sagamore Partners in 1997.

At $63 million, InSite and EL paid $677,419 per room for the hotel, which has been known for its art-filled lobby.

The price was among the highest paid for South Beach hotels. In September Rockpoint Group bought the non-waterfront Aloft South Beach for $105 million or $446,809. Hyatt Hotels bought the Thompson Miami Beach, an oceanfront hotel, in April for $229.4 million or $603,684 per room. And last year, Chesapeake Lodging Trust bought the James Royal Palm, less than two blocks away from the Sagamore, for $278 million or $707,000 per room.

InSite Group, a private development and investment firm backed by Israeli investors, also owns such hotels as the Sheraton Tampa Riverwalk, the Coco Key Resort in Orlando, and the former Clarion Suites in New Orleans.

EL Group, a family-owned investment group with offices in New York, Miami and Tel Aviv, owns commercial office, luxury residential, retail properties, assisted living facilities and medical office centers. The firm is also developing residential properties in Manhattan and downtown Brooklyn.


Related Articles

arrow_forward_ios
Diego Lowenstein, Dayssi Olarte de Kanavos, Paul Kanavos, and Ronny Ben Josef, with The The Sagamore (Credit: The Sagamore Hotel)

Owners of Ritz-Carlton South Beach and Bal Harbour hotels merge with Sagamore

Owners of Ritz-Carlton South Beach and Bal Harbour hotels merge with Sagamore
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
Starwood CEO Barry Sternlicht, InTown Suites CEO Ash Kapur and 1071 NE 28th Avenue in Homestead (Getty, Google Maps)

Starwood scores $265M refi for portfolio of InTown, Uptown hotels

Starwood scores $265M refi for portfolio of InTown, Uptown hotels
Lord Balfour Hotel

Mezz lender forecloses on Ocean Drive hotel in South Beach

Mezz lender forecloses on Ocean Drive hotel in South Beach
Domio Wynwood, Gustavo Miculitzki, and Jon Paul Pérez (Credit: Alberto Tamargo/Getty Images)

Related lists Domio Wynwood apartment-hotel for sale with whisper price of $90M

Related lists Domio Wynwood apartment-hotel for sale with whisper price of $90M
Jeffrey Soffer and Fontainebleau Miami Beach (Getty)

Fontainebleau Miami Beach’s $1B loan exits special servicing

Fontainebleau Miami Beach’s $1B loan exits special servicing
Len Blavatnik, Vlad Doronin and a rendering of the project (Credit: Mike Coppola/FilmMagic via Getty Images)

Miami Beach approves zoning change allowing for Aman tower

Miami Beach approves zoning change allowing for Aman tower
Renderings of the project

Miami Beach board approves Generator hostel/hotel expansion

Miami Beach board approves Generator hostel/hotel expansion
arrow_forward_ios

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

Loading...