Two South Beach hotels hit the market for $42M

The seller owns the Shell Lumber and Hardware Company

Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty
Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty

The owner of two South Beach hotels is looking to sell the properties for a combined $42 million.

Companies tied to Orlando J. Valdes own the Cavalier Hotel at 1320 Ocean Drive and the Henrosa Hotel at 1435 Collins Avenue. The properties mark the last hotels that the family owns in Miami Beach, according to the listing broker, Susan Gale of One Sotheby’s International Realty.

The Valdes family owns the Shell Lumber and Hardware Company.

The properties are hitting the market independently, for $25 million and $17 million, respectively, and as a portfolio for an undisclosed discount, Gale said.

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The Cavalier is asking $543,000 per key. The nearly 17,000-square-foot hotel sits on a 6,500-square-foot lot. Property records show that Ventura Capital One LLC paid $12.5 million for the hotel in 2014 and renovated it in 2016 and 2017. It was built in 1936.

The Cavalier includes a 2,200-square-foot restaurant with another 600 square feet of sidewalk seating. The restaurant, with space for 111 seats, comes with a liquor license. Gale said it could generate an additional $500,000 a year in income.

The Henrosa, a 40-room hotel, is asking $425,000 per key. Ventura Way One LLC paid $8.6 million for the 15,300-square-foot building, which was built in 1935, in 2014. It reopened less than a year ago after extension renovations, Gale said.

Gale brokered the recent $34.75 million sale of the Lord Balfour Hotel at 350 Ocean Drive to the U.S. arm of private equity firm Henley. The hotel traded hands in August for about $429,000 per room. Also in August, Blue Road paid $14.4 million for the shuttered Sanctuary Hotel at 1745 James Avenue, which breaks down to about $450,000 per key.

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