An affiliate of Galbut Family Office paid off the $213.4 million construction for the Gale Hotel & Residences project in downtown Miami.
Bank OZK provided the financing for the 51-story, 688-unit mixed-use tower at 601 Northeast First Avenue in September 2021. The developer, Sixth Street Partners, began recording closings in late May, property records show.
A spokesperson for the developer said the construction loan has been paid off. Bank OZK has issued nearly 200 partial releases of the mortgage, likely tied to each unit sale that’s been recorded, according to property records.
The building first launched as an Airbnb-branded Natiivo tower with Harvey Hernandez, Russell Galbut’s ex-partner on the deal. It includes 688 residential units, 240 of which are part of the Gale and 448 of which are Natiivo. Some are condo-hotel units, while others are condos that owners can rent out on a short-term basis.
The developer said it’s completed closings for 438 units.
Galbut Family Office includes Russell Galbut’s daughter, Marisa Galbut, and his nephew, Keith Menin.
Construction began in 2020. That same year, Airbnb sued Hernandez, alleging he defrauded the company and misappropriated funds. Hernandez and Airbnb voluntarily settled and dismissed their suits shortly afterward.
Sixth Street Miami Partners launched sales of the Gale condo-hotel units last fall. Units at the Gale range from studios to two-bedroom condos, starting at 410 square feet. Unit prices range from the mid-$500,000s to more than $1 million.
The tower also has 70,000 square feet of amenities across three floors, including a gym, yoga lounge, spa and terrace; and a conference center and exhibit space, according to a release.
Developers continue to launch short-term rental-friendly condo projects due to strong demand from buyers who they say are looking for a home to use part of the time with the flexibility to rent their units out on a short-term basis, generating income. More than two dozen of such developments are planned, many concentrated in Greater Downtown Miami.
Because the units are much smaller, the prices are considered more affordable. But not all short-term rental condo or condo-hotel projects are created equal, and many don’t hold their value, according to some brokers and developers.
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