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
Prologis CEO Hamid Moghadam (Prologis, CBRE, iStock)
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
The Deauville Beach Resort at 6701 Collins Avenue (Google Maps, Office of the City Manager)
Miami Beach orders historic oceanfront Deauville resort to be demolished
Miami Beach orders historic oceanfront Deauville resort to be demolished
From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
From left: Greg Friedman (buyer), managing principal and CEO, Peachtree Hotel Group, and David Leatherwood (seller), CEO and managing member, Norwich Partners (Peachtree Hotel Group, Norwich Partners, Booking.com, iStock)
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Z Ocean Hotel in Miami Beach
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
From left: James Vosotas and Branden Muhl, former partners who teamed up to renovate and reopen Hotel Greystone (Vos Hospitality, Mahaska, LoopNet)
Partner in South Beach’s Hotel Greystone hit with $19M judgment
Partner in South Beach’s Hotel Greystone hit with $19M judgment
Location Ventures CEO Rishi Kapoor and Miami Beach Mayor Dan Gelber (Dan Gebler, Stock. Photo illustration by Priyanka Modi.)
Miami Beach removes developer Rishi Kapoor from banned political donors list
Miami Beach removes developer Rishi Kapoor from banned political donors list
Sadhana and Sanjaykumar Patel of Luckey’s Management with a rendering of the 172-room hotel development in Fort Lauderdale (Luckey's Management/George White Architect)
Lucky Day? Luckey’s Management wins approval for 172-room, dual-branded hotel in Fort Lauderdale
Lucky Day? Luckey’s Management wins approval for 172-room, dual-branded hotel in Fort Lauderdale
arrow_forward_ios

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

Loading...