Holidays Network Group paid $27 million for a Miami Beach redevelopment site that has approvals for a 107-room hotel.
An affiliate of Winter Park, Florida-based Holidays Network acquired an 88-unit apartment complex at 2618 Collins Avenue, records and Vizzda show. The firm obtained a $35.3 million loan from Western Alliance Bank.
The deal breaks down to about $307,000 per room.
The seller, a joint venture between investors Eli Dadon, Avi Dishi and Richard Waserstein, paid a combined $10 million to buy Prince Michael units between December 2014 and December 2017.
The partnership converted the property to rentals, and in 2018 the Miami Beach Historic Preservation Board approved the joint venture’s plan to renovate the complex into a boutique hotel. At the time, Dadon, Dishi and Waserstein planned to reopen the property as the Prince Michael Hotel, and charge room rates between $300 and $500 a night.
Built in 1951 in MiMo style, the 0.5-acre site’s two buildings have historic designations that prohibit full demolition. The property was originally a hotel designed by Roy France, an architect known for his Art Deco style. During the 1980s, the property was converted to condo units in the 1980s.
The Miami Beach hotel market is heating up. This month, a company managed by Belgian investor Annette Schiffer listed the Blanca Kara Hotel in Miami Beach’s South of Fifth neighborhood for $18.5 million, or $740,000 per key. Schiffer paid $2.6 million for the three-story Art Deco building in 2010.
Also this month, Aventura-based BH Group and the hospitality arm of Delray Beach-based Kolter Group bought the Crystal Beach Suites Miami Oceanfront Hotel at 6985 Collins Avenue. The joint venture paid $24 million for the 84-room hotel.