Blackstone sells Marriott hotel in Boca Raton

The buyers are planning to redevelop the site into a mixed-use project

Fires from lava flows in 2018 (Photo by Don Smith/Getty Images)
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone Group sold a Residence Inn by Marriott in Boca Raton for $14.25 million to a group of South Florida investors who plan to redevelop it into a mixed-use project.

The New York-based private equity giant sold the 120-room extended-stay hotel at 525 Northwest 77th Street to Shane Neman, principal of Neman Ventures; and Richard Waserstein and Mauricio Bello of Waterstone Capital. The deal equates to $118,750 per key.

The sale signals growing interest in the Boca Raton hotel market as the city attracts more technology and finance companies and corporate executives require lodging for extended periods of time.

The Residence Inn by Marriott Boca Raton sits on 4 acres near Congress Avenue. Built in 1988, it last traded for $12 million in 2014.

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Neman, Waserstein and Bello plan to redevelop the project in three phases with an expected completion date of 2030, according to a press release. Part of the redevelopment will include a multifamily complex adjacent to the extended-stay hotel.

Miami-based Neman Ventures was founded in 1999 by Neman. The firm’s real estate portfolio includes more than two dozen large-scale properties across the U.S., according to the release.

Investment has poured into Boca Raton real estate in recent years. In June, billionaire Michael Dell paid $461.6 million for the waterfront 1,047-room Boca Raton Resort & Club, marking one of South Florida’s largest hotel sales in recent years. Blackstone Group sold the 337-acre resort at 501 East Camino Real.

Penn-Florida Companies is also planning to build a 12-story, 92-unit luxury condo development as part of Via Mizner, a 2 million-square-foot mixed-use project in the center of Boca Raton.