The Real Deal Miami

The Clevelander and an adjacent hotel in Miami Beach sell for $28M

The Montreal-based buyer paid $20.7 million for the Clevelander South Beach hotel and $7.9 million for the Essex House Miami Beach hotel
October 20, 2018 09:00AM

A poolside bar at the Clevelander South Beach hotel.

Montreal-based Jesta Group acquired the Clevelander South Beach hotel in Miami Beach and an adjacent hotel for $28.5 million.

Clevelander Holdings, managed by Eric Aintabi, the chief executive officer of Jesta Group, bought the Clevelander for $20.6 million.

Built in 1938, the Clevelander last sold in 1999 for $7 million. The property at 1020 Ocean Drive has 60 hotel rooms, a swimming pool and patio area, sundeck, rooftop terrace, sports bar and restaurant.

The Jesta Group affiliate that bought the Clevelander also leased the property’s restaurant and hotel for 10 years to an entity called Clevelander Ocean, which also is managed by Aintabi.

UBS AG provided a $42.5 million mortgage loan with a 10-year term to both Clevelander Holdings and Clevelander Ocean.

Jonathan Neeley of Brio Investment Group manages the entity that sold the Clevelander, 2K South Beach LLC.

Neeley also manages 2K Essex, which sold the 70-room Essex House Miami Beach hotel to another affiliate of Jesta Group, Essex House Collins, for $7.9 million – well below the $11.4 million price the last time it was sold in 2006. Built in 1937 at 1001 Collins Avenue in Miami Beach, Essex House is a 70-room hotel. [South Florida Business Journal]Mike Seemuth