Falor Cos. Buys Two South Beach Landmark Hotels

MIAMI-The Falor Cos. has purchased Breakwater Hotel and Edison Hotel on South Beach in the city and plans to invest $9 million into the property. Once the upgrades are complete, the new owner will convert the adjacent properties into a 113-suite condominium hotel.

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.