Infinity sells Ocean Drive building to Apple Core for $33M
Infinity invested $6M into the mixed-use building
UPDATED, Dec. 24, 1:05 p.m.: New York-based Apple Core Holdings paid $32.5 million for an Ocean Drive building in Miami Beach, The Real Deal has learned.
Infinity Real Estate sold the roughly 19,000-square-foot building at 1200 Ocean Drive, across from the beachfront Lummus Park, said Infinity partner David Berg. The company acquired the property from Goldman Properties in 2016 for $15.25 million.
Apple Core Holdings is led by co-founder and CEO Steve Klein, and co-founders and senior partners Kenneth Greif, Larry Horn and Will Kohane, according to its website.
Aaron Labovitz of Newmark Knight Frank represented the buyer, Core Ocean Drive LLC, as well as the seller in the off-market deal.
The three-story South Beach mixed-use building was previously home to the prominent gay bar and restaurant called The Palace. It was built in 1958 on a 7,322-square-foot lot, and Infinity invested $6 million into restoring and renovating the property after securing approval from the Miami Beach Historic Preservation Board. The building was designed by Miami Modern architect Gilbert Fein.
The renovations involved upgrading the plumbing, electrical and other infrastructure, as well as reconfiguring the ground floor. Renovations were completed in the third quarter of 2018.
The ground-floor retail space totals a little over 5,000 square feet, plus a 1,000-square-foot lobby.
Infinity leased the ground-floor retail space to Xperience Restaurant Group’s Pink Taco, a Mexican concept. Pink Taco is expected to open in an indoor and outdoor space in mid-January, according to a press release.
SobeNY, a New York-based firm that operates luxury and short-term rentals, occupies the second and third floors, which were also renovated by Infinity.
Berg said that Infinity plans to re-invest the proceeds of the sale into a property via a 1031 exchange in Miami Beach, Washington, D.C., Philadelphia or New York.
At least two hotels sold on Ocean Drive this year. In August, the U.S. arm of Henley paid nearly $35 million for the Lord Balfour Hotel at 350 Ocean Drive, which re-opened as a Life House hotel.
A month earlier, Crescent Heights sold the Bentley Hotel at 510 Ocean Drive for $28 million to a company led by hotelier Shadi Shomar.