Deepak Khosa closes on distressed hotel on Singer Island, plans to convert to multifamily

50-key shuttered hotel is near the beach in Palm Beach Shores

Miami /
Feb.February 04, 2021 01:30 PM
Deepak Khosa and Aaron Kurlansky with 123 Ocean Avenue, Palm Beach Shores (Google Maps, iStock)

Deepak Khosa and Aaron Kurlansky with 123 Ocean Avenue, Palm Beach Shores (Google Maps, iStock)

Real estate investor Deepak Khosa paid $8.1 million for the Seaspray Inn and Beach Resort on Singer Island, with plans to convert the building into multifamily, The Real Deal has learned.

Khosa, an investor and owner of Palm Beach Gardens-based Atlantic Property Services, closed on the distressed deal for the 50-key hotel at 123 Ocean Avenue in Palm Beach Shores on Wednesday. The previous owner, Seaspray Resort Ltd., had filed for bankruptcy, and Khosa said his company purchased the property from the lender.

UC Funds, a Boston-based lender, is the seller of the shuttered hotel.

Some buyers are looking to convert existing hotels into multifamily due to the pandemic’s toll on the industry and continued demand for apartments.

Khosa financed the purchase with a $7.5 million loan from Sheridan Capital, according to Aaron Kurlansky of FM Capital, who arranged the financing. The loan closed in less than two weeks, and includes a construction component for the planned renovations, Kurlansky said. He was also involved in arranging the loan for the $30 million sale of the Tryp Hotel in Bay Harbor Islands.

Palm Beach County property records show the 35,178-square-foot Singer Island building was constructed in 1966. The 0.65-acre lot is adjacent to a parking lot that fronts the ocean. It’s less than a mile from the Ritz-Carlton Residences Singer Island.

Khosa said he plans to invest between $2.5 million and $3.5 million into renovating the property. His firm owns a portfolio of multifamily, hotel and retail properties in Lee, Collier, St. Lucie, Broward, Palm Beach and Miami-Dade counties, and is on the hunt for more distressed opportunities.

“We’re in a [growth] pattern, looking for more assets,” he said.






    Related Articles

    arrow_forward_ios
    (Facebook via Hotel Astor Miami Beach)
    Shuttered Hotel Astor in Miami Beach gets a new owner
    Shuttered Hotel Astor in Miami Beach gets a new owner
    Miami allegedly granted improper height increase for Design District hotel project: lawsuit
    Miami allegedly granted improper height increase for Design District hotel project: lawsuit
    Miami allegedly granted improper height increase for Design District hotel project: lawsuit
    The Fairwind Hotel and Joseph Chetrit (Getty, Fairwind)
    Chetrit Group sells Miami Beach hotel for $42M
    Chetrit Group sells Miami Beach hotel for $42M
    Renderings of the project Courtesy of Pebb Capital
    JV plans high-end offices at old Bancroft Hotel in South Beach
    JV plans high-end offices at old Bancroft Hotel in South Beach
    JHSF's Fábio Auriemo with Como Metropolitan Miami Beach hotel (Susan Gale Group / One Sotheby’s International Realty)
    Brazilian real estate giant JHSF buys oceanfront Miami Beach hotel, plans first Fasano
    Brazilian real estate giant JHSF buys oceanfront Miami Beach hotel, plans first Fasano
    The Variety Hotel (Getty)
    Lender acquires Variety Hotel in Miami Beach following foreclosure suit
    Lender acquires Variety Hotel in Miami Beach following foreclosure suit
    Branden Muhl, James Vosotas and Hotel Greystone at 1920 Collins Avenue, Miami Beach (Google Maps, Mahaska, Trans Inns)
    Hotel Greystone to reopen in September amid partnership break-up
    Hotel Greystone to reopen in September amid partnership break-up
    The 5-to-0 vote last week will prevent property owners in a large chunk of residential South-of-Fifth from converting their buildings into apartment hotels (iStock)
    Miami Beach bans new apartment hotels in parts of South-of-Fifth — for now
    Miami Beach bans new apartment hotels in parts of South-of-Fifth — for now
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...