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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
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.
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.