Miami Beach hotel near Faena District hits the market for $42M

Owners plan to invest the proceeds into a new Miami Beach project
By Katherine Kallergis | August 02, 2019 11:30AM

Susan Gale and the Read South Beach Hotel (Credit: Google Maps)

Susan Gale and the Read South Beach Hotel (Credit: Google Maps)

The owners of the Red South Beach Hotel near the Faena District are looking to sell.

The 110-room, seven-story hotel at 3010 Collins Avenue in Miami Beach hit the market for $41.5 million, according to listing broker Susan Gale of One Sotheby’s International Realty. That’s $377,273 per key.

Property records show an LLC led by Simon Nemni and Georges Tordjman owns the hotel, which is about one block south of developer Alan Faena’s properties. The Red hotel was built in the 1930s and includes a pool, restaurant and bar and fitness room.

“There are only a limited number of boutique hotels not on the ocean that have this many rooms. Most are 40 or 50 rooms,” Gale said. “There are certain operators that in order to more than break even or turn a profit, they want at least 100 rooms.”

The hotel last sold in 2009 for $9 million, records show. Itl sits on a 12,000-square-foot corner lot on the west side of Collins Avenue.

The owners, who Gale said are French, are selling because they have a new project in Miami Beach.

Last year, a company controlled by Nemni paid $17.6 million for a shuttered assisted living facility at 550 Ninth Street in Miami Beach.

Near the hotel, Faena and his partner Len Blavatnik redeveloped blocks of Mid-Beach to include the luxury condo Faena House, the Faena Hotel, Faena Forum and more. The developers plan to redevelop the historic Versailles property at 3425 Collins Avenue.

Last year, Generator Hostels opened its first U.S. location at a renovated eight-story building at 3120 Collins Avenue in Miami Beach, previously known as Atlantic Princess Condominium.