Billionaires Simon and David Reuben are officially entering the Miami Beach hospitality game, acquiring the W South Beach for more than $400 million.
Reuben Brothers, the siblings’ eponymous London-based global investment arm, bought the hotel at 2201 Collins Avenue from Aby Rosen and David Edelstein, who lead New York-based firms, RFR Realty and Tricap, respectively, a press release states.
Jeffrey Davis with Eastdil Secured facilitated the deal on behalf of the sellers.
The deal includes 175 hotel rooms and 173 condo-hotel units. The Real Deal previously reported the Reubens were under contract to purchase a majority stake in the W South Beach, which also has 211 condo-hotel units owned by individuals.
Instead, Rosen and Edelstein are completely out after owning the luxury resort for nearly two decades. Tricap, formerly Tristar Capital, co-developed the W South Beach on a 3.5-acre site near the Bass Museum of Art and the Miami City Ballet. The 20-story building was completed in 2009, records show.
The partnership temporarily fractured last year when Rosen and Edelstein filed dueling lawsuits against each other in Miami and New York civil courts. The duo accused each other of attempting to sabotage Tricap’s then-$200 million proposal to buy RFR’s interest. At the time, the joint venture also faced a maturity date on a $157.4 million loan. Rosen and Edelstein privately settled and dismissed the complaints in April of last year.
The W South Beach acquisition expands the Reubens’ South Florida hotel portfolio. In 2022, Reuben Brothers paid $42 million for the 53-room Chesterfield Hotel in Palm Beach. The firm is completing a renovation of the property, which will reopen in 2025 as The Vineta and will be part of German luxury hotel brand, Oetker Collection, the release states.
In 2020, Reuben Brothers bought a 25 percent stake in JW Marriott Miami Turnberry Resort & Spa, a 685-key hotel in Aventura that is majority owned by Jeffrey Soffer’s Fontainebleau Development. The same year, Soffer completed a $300 million renovation of the Turnberry resort.