Michael Dell’s MSD Capital buying 1 Hotel South Beach for more than $500M

Deal would set a record in South Florida on a per-key basis at at least $1.2M a room

TRD MIAMI /
Sep.September 25, 2018 11:36 AM

1 Hotel South Beach, Barry Sternlicht and Michael Dell

Billionaire Michael Dell’s MSD Capital is buying 1 Hotel South Beach for about $500 million, or more than $1 million per key.

Starwood Capital Group, led by Barry Sternlicht, is selling the beachfront 426-key hotel at 2341 Collins Avenue for about $1.2 million a room, according to the Commercial Observer. The deal, which is reportedly in contract, would set a record for hotel sales in Miami, beating out the $1 million per key (or $325 million sale) of the Ritz-Carlton Key Biscayne in 2015.

Hodges Ward Elliott is the listing broker, sources said. The “eco-luxury” hotel hit the market about two years ago along with Sternlicht’s 1 Hotel Central Park and 1 Hotel Brooklyn Bridge.  OpenComps, a website that tracks commercial real estate deals, reported the $500 million price of the Miami Beach property, citing the Commercial Observer.

The buyer, MSD Capital, is a private investment firm that manages Dell and his family’s assets. Dell, chairman and CEO of Dell Technologies, is worth about $28 billion, according to Forbes. Most of his fortune is in the investment firm, which has offices in West Palm Beach, New York and Santa Monica, Forbes reported.

Sternlicht redeveloped the former Gansevoort Hotel property into 1 Hotel & Homes with joint venture partner LeFrak. The hotel, which opened in 2015, features three restaurants, four outdoor swimming pools, 57 cabanas and daybeds and an 18,000-square-foot gym and spa. Property records show affiliates of Starwood, LeFrak and Invesco acquired the property in 2012.

Spokespersons for MSD Capital, Sternlicht and Hodges Ward Elliott declined to comment.

Other top hotel sales in South Florida in recent years include Thayer Lodging Group’s $460 million purchase of Hollywood’s Westin Diplomat Resort in 2014, which broke down to about $461,000 per room.

Brookfield Asset Management is also reportedly under contract to buy the PGA National Resort & Spa in Palm Beach Gardens for $255 million, or about $752,000 per key. [CO] – Katherine Kallergis


Related Articles

arrow_forward_ios
Z Ocean Hotel

Developers misrepresented Z Ocean Hotel’s dire finances: judge

321 North Federal Highway and a rendering of the project (Credit: Google Maps)

Dania Beach approves Avid Hotel on Federal Highway

Jeffrey Dagowitz, Ophir Sternberg and 100 21st Street (Credit: Getty Images, Google Maps)

Lionheart and Jeffrey Dagowitz sell Seagull Hotel Miami Beach for $120M

Susan Gale and the South Beach hotels

South Beach hotels hit the market for $24M

Hyde Beach House Resort & Residences, Carlos Rosso and Drew Sims

Sotherly closes on acquisition of Hyde Beach House hotel space

Sleep Inn Miami Airport, Holiday Inn Express Miami Airport Central Miami, Gabriel Shamay and David M. Greenberg (Credit: Google Maps)

Amid supply surge, 2 hotels near MIA sell for $21M

Javier Rabinovich and 2301 Southwest 12 Avenue (Credit: Google Maps)

Privé Group snags hotel near Fort Lauderdale airport for $17M

Rendering of hotel addition at Sterling Building (Credit: Kobi Karp Architecture & Interior Design)

Sterling Building on Lincoln Road scores hotel approval

arrow_forward_ios
Loading...