The Real Deal Miami

Apartment building that can convert to short-term rentals sells in Miami Beach’s South-of-Fifth

27-unit property hit the market in 2016 and underwent multiple renovations
By Amanda Rabines | March 13, 2018 04:30PM

250 Collins Avenue (Credit: 250collins)

UPDATED March 20, 9:05 a.m.: Fresh from undergoing a multi-year renovation, a 27-unit apartment building in Miami Beach’s South-of-Fifth neighborhood just sold for $14.6 million, property records show.

The developer, TwoFifty Collins LLC, managed by Alessandro Renzetti, listed the property at 250 Collins Avenue for $22 million with Gary Hennes Realtors in 2016 – meaning the building sold at about a 33 percent discount off its original asking price.

Records show 250 Collins Propco LLC, led by Miami-based investor Gonzalo Manuel Chueca Peirote bought the property. It traded hands for about $541,000 per unit. The buyer is an affiliate of Drago, a European investment and management firm, according to a press release. It marks the second acquisition in the U.S. and in Miami Beach for Drago.

The company’s U.S. arm financed the deal with $9.25 million loan from Emerald Creek Capital 3 LLC. Marcus & Millichap Capital Corp. said it arranged the financing.

Online marketing materials show Cushman & Wakefield’s Calum Weaver and Perry Synanidis had the most recent listing. The property is listed on the firm’s website under the international hospitality brand The House Residence, with the option to convert the building into a hotel, apartments, short-term rentals, a condo-conversion and condo-hotel.

Neither Weaver or Synanidis were immediately available to comment.

Last May, Renzetti’s request to change the property’s designation to allow for both condominiums and short-term rental hotel use was approved by the Miami Beach Historic Preservation Board.

The building was designed by the late architect Gene Baylis, and was built in 1959. Units average about 700 square feet, and offer one-, two- and three-bedroom floorplans. Features include renovated kitchens, a third-floor glass penthouse level and a fourth floor rooftop pool and sundeck.

A nearby four-story, mixed-use building is on the market and is expected to sell for up to $20 million. A company tied to Russell Galbut and Sonny Kahn’s Crescent Heights listed the property in October.