Sunstone puts The Confidante Miami Beach under contract for $232M

Oceanfront hotel would be renovated, rebranded under Hyatt’s Andaz flag

Miami /
May.May 05, 2022 02:30 PM
Sunstone's Bryan Giglia and Douglas Pasquale with 4041 Collins Avenue (Sunstone Hotel Investors, Google Maps)

Sunstone’s Bryan Giglia and Douglas Pasquale with 4041 Collins Avenue (Sunstone Hotel Investors, Google Maps)

California-based Sunstone Hotel Investors put The Confidante Miami Beach under contract for $232 million, marking the real estate investment trust’s debut in South Florida.

Sunstone agreed to buy the 339-key oceanfront hotel at 4041 Collins Avenue from an affiliate of Hyatt Hotels Corporation, according to the buyer’s news release. The deal is expected to close by the end of the second quarter.

The price equates to $684,000 per room.

Sunstone plans a $60 million renovation, and will rebrand the property from its current Unbound Collection flag by Hyatt to Andaz, also by Hyatt, the release states.

The price would be the highest so far this year for a South Florida hotel, but is still below last year’s top deal, Pebblebrook Hotel Trust’s $270 million purchase of the 369-key Jimmy Buffett-inspired Margaritaville Hollywood Beach Resort in Hollywood.

The latest Confidante price is slightly above the $229.4 million Hyatt paid in 2016 for the hotel, which at the time was called Thompson Miami Beach. That trade included a mixed-use garage across the street.

The Confidante was originally built in the 1940s with one tower that then was Miami Beach’s first modern skyscraper, according to media reports. Two towers were added over the years, with the hotel temporarily converted into apartments. The property spans 1.5 oceanfront acres.

Amenities include three restaurants, a rooftop spa, two heated pools, and a 30,000-square-foot indoor and outdoor meeting and event space, according to Hyatt’s website.

Sunstone, based in Irvine, California, plans to revamp the pool and backyard, food and beverage offerings, rooms, and meeting and event space, and it also would relocate the lobby to an area that would allow expansive oceanfront views to guests checking in, according to the release. The renovations are expected to begin in the fourth quarter and should be completed in the first half of 2024, along with the rebranding.

The Confidante will stay open while work is ongoing, the release states. Hyatt will stay as the hotel manager.

Sunstone plans to finance its purchase with cash and by drawing on its revolving credit facility. It also will “recycle capital” from its recent sale of three hotels in Chicago, the company’s CEO Bryan Giglia said in the release.

In March, Sunstone sold the 368-key Embassy Suites Chicago at 600 North State Street and the 361-key Hilton Garden Inn at 10 East Grand Avenue in Chicago for a combined $129.5 million.

Sunstone, headed by Executive Chairman Douglas Pasquale, is publicly traded on the New York Stock Exchange. Its other Florida properties are the 781-key Renaissance Orlando at SeaWorld at 6677 Sea Harbor Drive in Orlando, and the 175-key Oceans Edge Resort & Marina at 5950 Peninsular Avenue in Key West, according to Sunstone’s website.

Other South Florida top hotel sales this year include Utah-based Dynamic City Capital’s $74.3 million purchase in February of the 171-unit AC Hotel by Marriott at 3029 Alhambra Street near the beach in Fort Lauderdale.

In another AC Hotel trade, Peachtree scooped up the 233-key property at 20805 Biscayne Boulevard next to Aventura ParkSquare in January for $49.5 million.





    Related Articles

    arrow_forward_ios
    Ilya Karpov with 3026 North Bay Road
    Russian mogul Ilya Karpov buys waterfront North Bay Road home for $14M
    Russian mogul Ilya Karpov buys waterfront North Bay Road home for $14M
    5700 Sunset Drive, 19M
    Sunrise investors buy South Miami retail building for $19M
    Sunrise investors buy South Miami retail building for $19M
    Long Light Capital's Justin Korsant with 45 East Dilido Drive (Getty, Mike Ruiz)
    Third time’s the charm: Waterfront Venetian Islands home flips for record $4,900 psf
    Third time’s the charm: Waterfront Venetian Islands home flips for record $4,900 psf
    Location Ventures founder and CEO Rishi Kapoor with a rendering of the Location Ventures proposed project on the left and a rendering of Codina Partners’ Regency Tower project on the right (Hamed Rodriguez Architect, Nichols Brosch Wurst Wolfe & Associates and Codina Partners, Location Ventures)
    Coral Gables OKs Armando Codina’s rental tower, Location Ventures’ condos
    Coral Gables OKs Armando Codina’s rental tower, Location Ventures’ condos
    US HUD Secretary Marcia Fudge (Getty, iStock)
    A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
    A heavy crown: HUD secretary declares Miami “epicenter” of nation’s housing crisis
    The Park at Sheffield apartment complex at 15601 Southwest 137th Avenue in southern Miami-Dade County (Google Maps, The Park at Sheffield)
    Fruchtlanders pay $61.5M for apartment complex near Zoo Miami
    Fruchtlanders pay $61.5M for apartment complex near Zoo Miami
    The Oceana in Key Biscayne (Condo.com, iStock)
    Oceana Key Biscayne closing tops Miami-Dade’s weekly condo sales
    Oceana Key Biscayne closing tops Miami-Dade’s weekly condo sales
    Russell Galbut in front of 1030-1050 Sixth Street in Miami Beach (LoopNet, GFO Investments)
    Russell Galbut buys dev site near Five Park in South Beach, plans hotel
    Russell Galbut buys dev site near Five Park in South Beach, plans hotel
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...