Chetrit Buys Historic Miami Beach Hotel for $117M
- Mar 28, 2013
MBR Waterview L.L.C., of New York, has purchased the 18-story, 424-room Miami Beach Resort and Spa for $117 million, it was announced Tuesday. The seller was Blackstone Group, on whose behalf Jones Lang LaSalle’s Hotels & Hospitality Group arranged the sale. The new owner reportedly is managed by the famously secretive Chetrit Group, also of New York.
The purchaser reportedly plans to enhance the hotel, at 4833 Collins Ave., with redesigned public areas, updated meeting facilities (the hotel has 40,000 square feet of waterfront meeting space), renovated guest rooms, and new food and beverage concepts. The hotel will remain open during this work.
The property, which opened in 1963 as the Doral Beach Hotel, has won several Mobil Five Star awards over the years.
Managing director Gregory Rumpel and vice president Andrew Dickey led the JLL team on this transaction.
“The sale of the Miami Beach Resort and Spa represented a rare opportunity to acquire one of the last big boxes in Miami,” Rumpel said in a release. He added that the property is “one of the most prominent and historic hotels in the market,” with a beachfront location, excellent meeting space and significant redevelopment opportunities.
Miami remains a top market for hotel investors, according to JLL, with 2012 having delivered the strongest fundamentals in a decade. Over a 10-year period, Miami has experienced one of the strongest RevPAR compound annual growth rates (6.7 percent) of any major city in the United States.
Among recent Chetrit deals, and there have been several, foremost was the company’s $1.1 billion purchase of New York City’s iconic Sony Building at 550 Madison Ave.
On March 3, The Wall Street Journal reported that the Chetrit Group and two partners have agreed to pay more than $150 million to buy the 1.5-acre site of the five-building former Cabrini Medical Center near Gramercy Park. The site reportedly is likely to be redeveloped with about 400,000 square feet of residential.
On the hotel front, Joseph Chetrit and David Bistricer closed last November on their $81 million purchase of Brooklyn’s Bossert Hotel from the Jehovah’s Witnesses/Watchtower Bible and Tract Society of New York, which had owned the building since 1983, but reportedly is selling many of its Brooklyn properties. The society had used the building as a community facility, but at last report the new owners were on schedule to reopen the renovated 103-year-old property as an independent 302-room hotel this summer.