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Gencom sells Ritz-Carlton Coconut Grove for $36M to hotel REIT

Ritz-Carlton Coconut Grove. Inset: Hersha CEO Jay Shah
Ritz-Carlton Coconut Grove. Inset: Hersha CEO Jay Shah

Updated, 3:22 p.m., Feb. 23: Gencom has sold the Ritz-Carlton Coconut Grove for $36 million, or about $313,000 per room, to Hersha Hospitality Trust.

Records show Gencom affiliate Genmag Coconut Grove LLC sold the 115-room hotel, excluding the condo-hotel residences, to HHLP Coconut Grove RC Associates LLC.

The property, at 3300 Southwest 27th Avenue, was built in 2002. Amenities include a lounge, restaurant, a poolside cafe, and a 6,000-square-foot spa and gym. The 13,500 square feet of event space includes a 3,200-square-foot garden courtyard and a 5,200-square-foot ballroom, according to the website. Gencom refinanced the hotel in May 2015 with a $15 million loan.

Gencom, founded and led by Karim Alibhai, bought the Ritz in a joint partnership with the Continental Companies in 2011 for $10.2 million, according to property records. The hospitality investment and development firm owns a number of Ritz-Carlton properties, including the Ritz in Fort Lauderdale, in addition to Marriott, Hyatt and others, according to its website. In 2015, it sold a majority interest of the Ritz-Carlton Key Biscayne for $325 million to Carey Watermark Investors.

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Hersha, a hotel real estate investment trust based in Philadelphia, is building a 135-room hotel at the Village of Merrick Park in Coral Gables. It also owns the Courtyard Cadillac Miami Beach Hotel, a 355-key hotel at 3925 Collins Avenue in Miami Beach. Last year, Hersha sold a 70 percent majority interest in seven Manhattan hotels to Chinese investment firm Cindat Capital Management in a deal worth $571.4 million.

The REIT also owns the Residence Inn Miami Coconut Grove near the Ritz Coconut Grove, at 2835 Tigertail Avenue. The neighborhood is seeing a surge of new retail and condo activity, including the Grove at Grand Bay and Park Grove condo developments and new retail like Panther Coffee, a Büro co-working space, Harry’s Pizzeria and other new tenants.

Hersha declined to comment.

A previous version of this story incorrectly identified the sale price as $24.63 million. The hotel sold for $36 million, which includes fixtures, furnishings and equipment, according to Gencom. 

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