The Real Deal Miami

Jeffrey Dagowitz and Lionheart Capital buy Miami Beach’s Seagull Hotel at auction

JV paid $31.1M for waterfront site
By Amanda Rabines | December 22, 2017 05:35PM

The Seagull Hotel Lionheart Capital CEO Ophir Sternberg(Credit: Miami-Dade County Property Appraiser, Pixabay)

UPDATED Dec. 23, 9:00 p.m.: Hotelier Jeffrey Dagowitz and Lionheart Capital bought the Seagull Hotel Miami Beach at auction Friday, putting in a high bid of $31.1 million for the prime piece of waterfront land, Dagowitz confirmed.

Bidders were required to submit a $5 million deposit, according to the requirements set by the auctioneer, Pompano Beach-based Fisher Auction Company. The reserve started at $8 million.

The 172-room hotel at 100 21st Street went to Dagowitz under the companies Biarritz GH LLC and TM Collins LLC, court documents show. Einbinder Milford LLC and 1986 Young Family Limited Liability Company were also listed as the buyers. Representatives for Lionheart did not immediately respond to a request for comment.

“The partnership partition that owned the property were in disagreement,” said Lamar Fisher, CEO and president of Fisher Auction Company, noting the 11th Judicial Circuit of Florida ordered the auction about two months ago.

The joint venture purchased a fee simple interest in the 1.34-acre property, as well as a ground lease, which expires in 2049. As part of the lease, the sub-tenant is required to pay the sub-landlord a fixed annual rent of $35,000 a year, according to a press release.

Dagowitz is the founder of real estate firm JHG Holdings. The company is behind several developments in New York. In January, the developer bought 83,000 square feet of air rights in Chelsea, meaning the owner can develop a building of up to 243,000 square feet.

A source close to the deal confirmed Ophir Sternberg, the founding partner and CEO of Lionheart Capital, is in talks with some luxury hotel brands to possibly renovate the hotel, which sits across from Collins Park between the W Hotel and the Setai. The development firm is also behind the soon-to-open Ritz-Carlton Residences in Miami Beach.

Correction: A previous story incorrectly listed the back-up bidder’s LLC. The previous story also excluded that Jeffrey Dagowitz is part of the joint venture that purchased the hotel.