Blue Road buys Redbury South Beach for $32M, plans expansion

Miami firm paid $464k per room for the boutique hotel

Miami /
Jun.June 16, 2017 12:45 PM

A company tied to Heyat Hospitality Group sold the Redbury South Beach Hotel on Collins Avenue for $32 million to Blue Road, which plans to expand the property.

Blue Road, led by principals Jorge Savloff and Marcelo Tenenbaum, will also manage the 69-room hotel, replacing Sbe, a spokesperson said. The Art Deco property at 1776 Collins Avenue sold for about $464,000 per key. No brokers were involved, but Alejandro Viel Temperley worked on the deal, the spokesperson said.

Sbe, Levy Restaurants and Heyat re-opened the popular hotel in 2013 with a 12,000-square-foot rooftop pool and a Cleo restaurant. The three-story building was built in 1952 and is on the west side of Collins Avenue, across from the Raleigh Hotel and SLS South Beach.

Heyat’s Sobe Hotel Miami Beach LLLP paid $14 million for the property in 2014, which means it just sold for more than two times the previous sale in three years.

Blue Road plans to demolish its Hotel 18 next door to the Redbury within eight months and build an extension to the Redbury, according to a press release. Kobi Karp is designing the 69-room addition at 1775 James Avenue, which will bring the Redbury to 138 rooms. The Redbury and Cleo will remain open throughout.

The property is near the Shore Club, which HFZ Capital Group plans to redevelop into the Fasano Residences + Hotel Miami Beach, a luxury condo and hotel project. HFZ paid about $567,000 per key for the beachfront Shore Club in 2014.

Experts say Miami-Dade’s hotel market is nearing the end of the cycle. “There has been a little tightening in the capital markets in terms of liquidity for new hotel development,” Rich Lillis, a South Florida executive vice president for Colliers International, said in The Real Deal’s June issue.

Lenders have been pulling back on financing new hotel projects and focusing on those with “compelling market dynamics, brands and locations,” Lillis said.

Blue Road also owns the Crest Hotel, which it acquired last year for $24 million, and re-opened CASA Boutique Hotel earlier this year, according to a release.

Sbe and Heyat could not immediately be reached for comment.


Related Articles

arrow_forward_ios
Fortune's Maria Elena Plasencia, SROA's Lauren Weiss and Suffolk's Maureen Henson (Fortune, SROA, LinkedIn, iStock)
Movers & Shakers: Fortune taps sales director at Nexo Residences
Movers & Shakers: Fortune taps sales director at Nexo Residences
Hollywood Locations' Christopher Ursitti and 1400 Northwest 31st Avenue (Hollywood Locations, Google Maps)
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Movie studio complex may rise on former incinerator site in Fort Lauderdale
Blue Road’s Marcelo Tenenbaum and Jorge Savloff with Emblem Tower (Northmiamifl, Blue Road, iStock)
Blue Road plans 20-story, 139-unit multifamily project in North Miami
Blue Road plans 20-story, 139-unit multifamily project in North Miami
From left: Edgardo Defortuna of Fortune International Group; Marcelo Tenanbaum and Jorge Savloff of Blue Road; along with a rendering of Nexo (Elephant Skin, Blue Road)
Blue Road, Fortune launch short-term rental-friendly condo project in North Miami Beach
Blue Road, Fortune launch short-term rental-friendly condo project in North Miami Beach
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
Kobi and Nancy Karp buy Walgreens-leased property in Delray Beach
New York, Miami, Chicago, Los Angeles, San Francisco and Chicago (iStock)
As rent explodes nationally, Miami tops the charts
As rent explodes nationally, Miami tops the charts
arrow_forward_ios

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

Loading...