The affiliate of Philadelphia-based Arden Group, owner of the Ritz Carlton Philadelphia, acquired the Art Deco-styled property in a sale supervised by the US Bankruptcy Court in Baltimore from Sunterra Corp., a publicly traded Orlando-based holding company. Sunterra operated a chain of time-share vacation properties known as Signature Resorts. The parent company filed for Chapter 11 protection from creditors last May.
The Philadelphia company, controlled by Craig A. Spencer, paid an estimated $18 million for two buildings built in the early 1940s at 455 Ocean Drive. The company acquired the assets amid a thriving seller's market.
"It's a strong market and an excellent location," Miami-based hospitality consultant Sheldon Greene, tells GlobeSt.com. "It happens to be on the water, which gives it extra appeal. Most properties on Ocean Drive are across the road facing the beach."
The Philadelphia company contracted with Miami Beach-based S&S Hotel Management Inc., a company Keith Space and Martin Scassera founded about three years ago, to manage the new acquisition.
S&S Hotel Management also manages the 50-room Abbey Hotel in Miami Beach as well as owning the 50-room site in partnership with Jonathan Zambetti, founder of New York-based Forthright Development, a hotel and restaurant developer. Although he would neither confirm nor deny the reported purchase price, Space described Arden Hotels' interest in the property as a long-term venture.
"(Arden is) very excited about the property," Space, president of S&S Hotel Management, tells GlobeSt.com. "It's a fabulous property with tremendous opportunity. (Arden) likes the long-term aspects of this asset. This is not a short-term turnaround. They want to invest in the property and run a first-class, quality hotel."
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