The Real Deal Miami

Mast Capital, Angelo Gordon & Co. buy Conrad Brickell for $72M

The joint venture paid about $355k per room, plans renovation

Conrad Miami and Camilo Miguel

Mast Capital and Angelo Gordon & Co. just paid $72 million for the Conrad Miami hotel on Brickell Avenue, sources told The Real Deal.

Mast Capital and Angelo Gordon, who have partnered before on property in North Bay Village, plan to renovate the hotel’s rooms and public spaces. The joint venture paid about $355,000 per room for the property at 1395 Brickell Avenue. The deal closed on Thursday.

The 203-key luxury hotel was on the market for about two years without an asking price. Christian Charre, Paul Weimer and Natalie Castillo of CBRE Hotels represented the seller, Holburn LC, a European company. The brokerage said in 2015 that it expected the property to trade for more than $100 million, which means it closed for about 30 percent less than the expected price.

Conrad Miami is located in the Espirito Santo Plaza, a property that has offices, 103 luxury condos and a retail component. Only the hotel, which includes a rooftop amenity deck, and a rental program, which currently has 41 out of 116 residential units participating, was included in the sale. It was developed by the Espírito Santo banking family of Portugal.

The new owners will enter into Conrad Hotels & Resorts’ first franchise agreement in the U.S., according to a press release. HEI Hotels & Resorts will manage the property.

Miami-Dade’s hotel market has suffered over the past yearAs tourism slumps in the wake of last year’s Zika virus threat and the ongoing financial and political unrest in Latin America, hotel development experts continue to warn that the supply of new rooms in Miami-Dade is far outstripping demand.

The Conrad’s hotel competition in the Brickell neighborhood includes the Four Seasons Miami at 1435 Brickell Avenue. Swire Properties opened East, Miami, a 40-story, 352-key hotel, at Brickell City Centre last year.