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.