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Menin, Galbut sell shuttered South Beach hotel to Blue Road for $14M
Blue Road plans to redevelop the property, which has been closed since Hurricane Irma
Companies tied to Menin Hospitality and Russell Galbut’s Crescent Heights sold the shuttered Sanctuary Hotel in Miami Beach for $14.4 million to Blue Road.
Sanctuary South Beach Inc., Sanctuary SB Properties LLC, Sanctuary RonRuss Properties and MJK Group LLC sold the 32-key condo-hotel at 1745 James Avenue to Jorge Savloff and Marcelo Tenenbaum’s Blue Road, according to Marcus & Millichap.
Joseph P. Thomas, Adam G. Duncan, Aaron O’Connor, Brett McMahon, Alec Demetriou, Drew A. Kristol, and Kirk D. Olson of Marcus & Millichap brokered the deal.
The Sanctuary, a now-vacant condo-hotel, was the first acquisition for Menin Hospitality, according to the company’s website. Menin was founded in 2005 by Keith Menin and Jared Galbut, who are developer Russell Galbut’s nephews.
The sale of the sanctuary marks the second hotel that companies tied to the Galbut and Menin families have sold recently. In July, Galbut sold the Bentley Hotel on Ocean Drive for $28 million, a property that Menin Hospitality previously managed. Galbut has said he has no ownership stake in Menin.
Meanwhile, Blue Road has expanded its portfolio of South Beach hotels. In September, it will return to the Miami Beach Historic Preservation Board for plans to redevelop the Park Terrace Apartments at 355 19th Street.
After acquiring the Redbury South Beach hotel at 1776 Collins Avenue for $32 million in 2017, the company embarked on an expansion of the property by building an extension at 1775 James Avenue that is currently under construction, Tenenbaum said.
The three-story Sanctuary sits on a 15,000-square-foot lot and is zoned RM-2 with a floor area ratio of 2.0, which would allow for up to 30,000 buildable square feet and a building of up to 50 feet in height. The building was originally built in 1951 and redeveloped in 1984. It was damaged by Hurricane Irma.
The property includes a restaurant and bar, rooftop deck with a pool and banquet space.
Blue Road will keep the Sanctuary closed while it finalizes its plans for the property.
Tenenbaum said the firm is looking at the area surrounding the newly renovated Miami Beach Convention Center. “Sooner or later, the convention center will be a big magnet for business, and we think that is the place to be,” he said.