UPDATED, Feb. 7, 5:17 p.m.: The Sixty Sixty condo-hotel in Miami Beach, once the subject of a fierce foreclosure battle, traded hands for $23.5 million to a buyer that plans to renovate and possibly expand the property, The Real Deal has learned.
Integra Investments and Sagar Desai’s Activate Hospitality sold the 82-key condo-hotel at 6060 Indian Creek Drive to Bloom Hotels, a division of Bloom Ventures, led by founder and CEO David Harari, he said. The sellers and buyer are all based in Miami.
The property, along the Indian Creek Waterway, was developed in 1992. Integra and Activate bought it for $15 million in 2020. They acquired the majority of units late that year and closed on the remaining units the following year, property records show.
Victor Ballestas, principal of Integra, said in a statement that the firm did not plan to sell the property, but “ripe market conditions created an opportunistic circumstance for the sale.”
Gregory Rumpel of JLL brokered the deal. Attorney Michael Gallinar of Adams Gallinar represented the seller.
Bloom Hotels financed the purchase with a $17.3 million loan from Sheridan Capital, led by Aaron Kurlansky. Joe Fishman and Michael Yassky arranged the financing.
Bloom Hotels may expand the room count and bring in a Hilton brand such as Canopy or Tapestry to operate the property as a hotel, Harari said. He plans to renovate and modernize the property, including the marina.
Schecher Group, led by Richard Schecher Sr. and Jr., sold the majority of the units to the Integra partnership. The company had been accused of a hostile takeover of the condo-hotel by unit owners after Schecher alleged the owners failed to pay about $9.4 million in assessments.
South Florida’s hotel market has recovered from the pandemic at a faster pace than in other parts of the country, though the region has seen its share of distressed hotel sales since the pandemic began. Deal activity increased last year, amid rising average daily rates and occupancy across South Florida, especially at leisure properties.
Billionaire Barry Sternlicht paid $62 million for The Standard hotel in Miami Beach in December.
So far this year, trades include the $20 million sale of the Element Miami International Airport Hotel to Toronto real estate investment firm Palm Holdings. The buyer paid an additional $12 million for the hotel operations.