Investment group cashes out of Boca hotel with $14M sale

The Ramada Boca Raton
The Ramada Boca Raton

Just two years after scooping up a Ramada Boca Raton hotel out of bankruptcy, real estate group Equity Management Partners has sold the property for $14 million, according to county records. The buyer is hotel investor Bakul Sanghvi.

The deal is another sign of investment activity in Boca, where a new wave of development is helping buoy property values.

Sanghvi, who owns and operates hotels around the U.S., paid roughly $76,502 per room for the 183-room hotel at 701 Northwest 53rd Street. The property is within Boca’s 700-acre Park at Broken Sound commerce campus, which was recently rebranded in an effort to spur more mixed-use development.

Equity, led by Ben Mallah, bought the hotel at a bankruptcy auction for $9.25 million in 2014. According to the South Florida Business Journal, the property was in bad shape at the time, with only 90 of its rooms deemed habitable.

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Mallah, who specializes in rehab projects, started renovating the property soon after the deal closed, giving the Ramada a fresh coat of paint and upgrading its rooms, according to county records.

The deal worked out to a cool $4.8 million premium over what Equity paid two years ago, not including renovation costs.

Sanghvi financed the deal with a $10.5 million loan from Legacy Bank of Florida, county records show.

Boca’s hospitality and retail industries have seen a significant uptick in new development recently, thanks in part to shrinking vacancies and growing rental rates.