(Crystal Proenza is associate editor of Real EstateFlorida.)
MIAMI BEACH, FL-The Breakwater Edison Hotel, which consists of two buildings located at 940 and 960 Ocean Drive, has been sold to Nakash Holding LLC and partners, the Gindi and Tawil families, for $24.8 million. Nakash Holding is owned by the Nakash family that also owns Jordache Enterprises. Jones Lang LaSalle Hotels arranged the deal on behalf of the seller, Barry Mukamal of Rachlin LLP, the appointed bankruptcy trustee of the hotel.
The hotel has been closed for several years in a partially redeveloped state, says Robert Gellman, principal in the real estate advisory group of Rachlin LLP and a member of Mukamal's trustee team. The redevelopment project ran into financial problems, including cost overruns and time delays, which precipitated a bankruptcy filing in March 2007.
According to the Miami Daily Business Review, a newspaper related to GlobeSt.com, the buildings were on their way to be converted into a condo-hotel by Chicago condo converter Robert Falor. The hotel was to be named Nicky O, after fashion model and socialite Nicky Hilton.
"The purchase prices we received was a good recovery to the creditors in light of the many challenges confronting a sale of the hotel, such as the tight credit markets and the partially renovated state of the hotel property," Gellman tells GlobeSt.com.
"The Breakwater Edison offered a unique opportunity for a buyer to enter a tight market," Christian Charre, a senior vice president of Jones Lang LaSalle Hotels, said in a release. "The purchaser will have the opportunity to complete the redevelopment and open a new hotel on South Beach."
Nakash Holding plans to operate the buildings as one hotel with about 94 guest rooms, Emzon Shung, executive VP of real estate and aviation with Nakash Holdings and Jordache Enterprises, tells GlobeSt.com. The Edison Hotel side of the building is projected to reopen in six to eight months, while the Breakwater will take a year to 18 months, he says.
Jordache Enterprises and the Nakash family are invested in worldwide residential and commercial real estate, according to the company's website. They own several other South Beach properties, including Hotel Ocean and the Henrosa Hotel.
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