Nakash Holdings Buys The Setai Hotel in South Beach
- Dec 29, 2014
Nakash Holdings, the investment company controlled by the founders of Jordache Enterprises and famous for its Jordache jeans, is expanding its hospitality holdings in Miami with the acquisition of The Setai Hotel, a luxury property in South Beach.
While Nakash did not release the price paid to an affiliate of Lehman Brothers Holdings, Inc., for the property, The Miami Herald reported it was approximately $90 million.
“In general, our real estate thesis is buying the best buildings on the best streets with the best tenants,” Jonathan Bennett, managing director of Nakash Holdings, told Commercial Property Executive. “That’s how we look at property regardless of the sector, regardless of whether it is hospitality, retail, office or multi-family. We’re always looking to buy prime. We believe the best holds its value as well as appreciates faster.”
Bennett said Nakash Holdings will own and operate approximately 130 rooms and suites in the landmark Art Deco building and the 40-story Tower. He said the hotel building has about 80 units; approximately 40 to 50 Tower condominium units are also part of the operational deal. The Nakash family already owned about 15 of the condo units so they were very familiar with the property both as owners and frequent guests, Bennett added.
“When it came up for sale, we couldn’t pass it up,” he told CPE.
The Art Deco building at 2001 Collins Ave. was constructed between 1936 and 1938 as the Dempsey Vanderbilt Hotel. In 2004, it was redesigned together with the Tower development by Jean Michel Gathy and Jaya Ibrahim. Amenities include three newly renovated infinity pools, four food and beverage outlets, an upscale spa and fitness center and more than 45,000 square feet of indoor and outdoor function space.
The hotel currently has a recording studio where Pharrell Williams reportedly recorded his hit song, “Happy,” according to the New York Post. Guests have included former President Bill Clinton along with famous actors and musicians, such as Hugh Jackman, Bono and Kanye West. In 2013, Conde Nast Traveler readers named it the best hotel in Miami and Miami Beach and the No. 2 overall in Florida.
Trevi Luxury Hospitality Group of Dallas is the current manager of the property.
“There are no plans to make any changes yet,” Bennett said. “They are doing a good job.”
Last year, Nakash acquired the former Versace mansion, now known as Casa Casuarino, in an auction for $41.5 million. It’s adjacent to the Victor Hotel it also owns on Ocean Drive. Other Miami hospitality holdings include Thompson Ocean Drive, Hotel Breakwater, Hotel Henrosa, Hotel Barcelona and Hotel Ocean.
“We are deeply invested in Miami. We’ve been investing in Miami for well over a decade, if not decades,” Bennett concluded.
Nakash Holdings manages a multibillion-dollar portfolio of investments including aviation, retail, agriculture, transportation, manufacturing and real estate located in prime locations throughout the world. In addition to hotels, the real estate portfolio consists of retail, office and multi-family properties. The firm continues to aggressively seek new opportunities in locations that fit the portfolio investment strategy.