UPDATED, May 20, 10:30 a.m.: Regal Acquisitions bought the CVS-anchored retail at the Boulan South Beach hotel for $34 million.
The New York City-based investment firm bought the two-story retail at 2000 Collins Avenue and the retail at the garage at 237 20th Street from an affiliate of PGIM Real Estate and Madison Capital, records show. Regal Acquisitions took out a $22.1 million acquisition loan from JPMorgan Chase Bank to finance the purchase of the 35,482 square feet of retail.
Other tenants include Joe & The Juice, Orange Blossom restaurant, Sweet Liberty bar and restaurant, Hennah Nail Salon and Anthony Liggins art gallery.
Joseph Ash and Isaac Shabot of Kassin Sabbagh Realty represented the buyer and seller.
Newark, New Jersey-based PGIM Real Estate, the real estate arm of life insurance company Prudential Financial, and New York-based real estate investor-operator Madison Capital bought the properties along with hotel common areas in 2016 for $56.3 million.
The 52-key Boulan condo-hotel was built in 2010 on the former site of Wolfie’s deli, although the hotel kept the original curved wall on 21st Street that was part of the restaurant. The Boulan units were not part of the recent deal.
The purchase is a diversification for Regal Acquisitions’s largely New York City-focused portfolio. The firm is led by Ely Cohen, Alex Smith and Joey Cohen.
This is the second big retail deal in South Beach this month. Location Ventures, based in Coral Gables, bought the retail building at 1260 Washington Avenue and the adjacent office building at 1234 Washington Avenue from Fryd Properties for $20 million.
South Beach, a popular party destination, is at the center of contention between developers and business owners, following overwhelming crowds during Spring Break. The city last week rolled back alcohol hours to 2 a.m. from 5 a.m., a measure supported by developers.
Venue owners oppose this and other measures to curb partying, with the Clevelander South Beach’s owner suing the city this week over the restrictions.
Correction: An earlier version of this story incorrectly identified a property included in the sale.