Family office buys South Beach short-term rental portfolio for $14M

New York-based buyer Daniell Group is the seller’s new equity partner for other deals

Gabriele Braha and Avihai Daniell with the properties (Red Group)
Gabriele Braha and Avihai Daniell with the properties (Red Group)

UPDATED, July 26, 12:15 p.m.: Red Group sold a portfolio of short-term rental units in South Beach for $13.9 million to Daniell Group, a family office led by Avihai Daniell.

Miami-based Red Group, led by co-founder and president ​​Gabriele Braha, sold the 20-unit building at 801, 807 and 815 Alton Road in Miami Beach, as well as the 18 condos at 1355-1357 Drexel Avenue, Braha said.

New York-based Daniell Group, which owns properties in New York, Israel and Florida, is working with Red Group as its new equity partner to buy and develop more short-term rental properties in Miami Beach and Wynwood, Braha said. In Wynwood, Red Group owns an assemblage where a 210,000-square-foot project could be built, plus a smaller site where a three-story commercial building is planned.

Daniell is also founder and managing partner at New York-based July Capital and July Residential Group, according to his LinkedIn.

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Property records show companies linked to Red Group paid about $3.2 million for the South Beach units at the Drexel Avenue building between 2014 and 2016. Red Group paid $3.5 million for the Alton Road complex in 2015.

Red Group has bought and sold more than 20 properties in Miami Beach. The company converts units to vacation rentals as value-add investments for its partners.

Short-term rentals are in high demand, especially in neighborhoods like Miami Beach’s South-of-Fifth, according to brokers. Louis Puig, the former owner of Club Space, recently paid $5.6 million for a 24-unit multifamily complex at 333 Jefferson Avenue that’s being converted to short-term rentals.

In December, another South-of-Fifth property sold to a buyer that plans to convert the apartment and office buildings into a high-end apartment hotel.