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

Owners plan to invest the proceeds into a new Miami Beach project

Aug.August 02, 2019 11:30 AM
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.

Related Articles

Russell Galbut and Mondrian South Beach condo-hotel

Galbut sells 50% stake in Mondrian South Beach

120 West Rivo Alto Drive, Julian Johnston and Silke Dietrich

Beauty moguls buy Venetian Islands spec home for $12M

David Martin, Russell Galbut, and a 500 Alton rendering (Credit: The Next Miami)

Miami Beach sues own board to overturn decision on Crescent Heights’ and Terra’s proposed condo tower

Madison Realty Capital'a Josh Zegen and Fort Partners' Nadim Ashi  

Four Seasons in Fort Lauderdale scores $210M loan

Christopher Nassetta and Doubletree by Hilton Doral managed by Driftwood Acquisitions and Development

Hilton CEO warns against ignoring global warming threat

55 Palm Avenue (Credit: Realtor and iStock)

Metals executive mines Miami Beach home

2021-2035 Meridian Avenue, Rani Hussami and Colin Rockson

AquaBlue Group owner lists South Beach apartments for $14M

Rattan Chadha, Executive Chairman & Founder of CitizenM

CitizenM scores $48M loan to build Brickell hotel