The sale price of the hotels totaled more than $22 million. Breakwater, located at 940 Ocean Dr. consists of 64 units in four stories. The seller was JAMM 18 Inc. Built in 1939, the hotel sold for $3.6 million, or $55,468 per unit, in June 1993, according to the Miami-Dade County property appraiser's office. The seller of the Edison, at 960 Ocean Dr., was Hotel Edison Ltd. The five-story hotel was built in 1935. It sold for $4.1 million, or $82,653 per unit, in September 1996, according to the property appraiser's office.
In January 2004, a nearby hotel, the 45-unit Tides hotel on South Beach, sold for $269,555 per unit. In August, the Falor Cos. signed a definitive agreement to buy that hotel, built in 1936, as well for an undisclosed amount. That deal is expected to close by Oct. 21.
While the hotels are nearby, David Gray, a hotel consultant with Cushman & Wakefield in South Florida, says South Beach hotels don't necessarily have similar per-unit rates. For example, a restaurant component can distort that figure and jack up the value. "A lot of those properties, particularly the ones on Ocean Drive, the food and beverage component is more than half" the value, he says.
Falor expects the property to be a strong asset. "These are very attractive hotels from an investment standpoint as a developer and a condo owner," Robert Falor, president and CEO, says in a statement. "As Miami and South Beach's renewed popularity continues to thrive, coupled with a strong real estate market, we are confident it will be a prime real estate investment and profitable hotel."
Plans call for the property renovations to include upscale finishes of luxury high-rise condo projects, such as plasma-screen televisions, marble bathrooms and European bath fixtures. Units at the renovated property will be sold starting later this week from the $200,000s. Condo units will range from 375 sf to 1,400 sf. The renovated units are set to be delivered in the spring. Kor Hotel Group will brand and manage the Breakwater and Edison condo-hotel. The company also manages seven upscale boutique properties in Southern California.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
