MIAMI—The historic Park Central Hotel just secured $40 million in construction financing. Park Central Partners, an entity of Optimum Asset Management, will use the money to redevelop the 1939 Art Deco hotel in Miami Beach.
HFF arranged a three-year, floating-rate, senior real estate construction loan through BB&T Real Estate Funding for Park Central. The loan will be used to take three existing Art Deco buildings—the Park Central Hotel, the Imperial Hotel, and Heathcoat Apartments—and a .15-acre development site and turn them into the new Park Central Hotel.
“When completed, the Park Central Hotel will re-establish Ocean Drive as a luxury boutique hotel and fine-dining destination,” says HFF managing director Jim Dockerty. He worked with HFF associate director Scott Wadler and analyst Marc Roth to arrange the capital.
When completed in 2017, the new Park Central Hotel will offer 135 luxury rooms that keep the historic charm of the original building. The project will feature three new restaurants totaling 8,100 square feet, a rooftop glass bottom pool, ground-floor pool with ocean views from the deck, 24 suites, 1,380 square feet of meeting space and clear views of the Atlantic Ocean.
The hotel property is directly across from Lummus Park and one block from the fashion district along Collins Avenue. The official address is 620-650 Ocean Drive.
“We are excited to be one of the major leading players in the 'renaissance' Ocean Drive is currently experiencing,” says Ricardo Tabet of Optimum. “We believe our renovation of the iconic Park Central Hotel will not only promote the glory of its heyday, but will also bring back a sense of tropical class and elegance to the area.”
Jim Shindell, an attorney at Bilzin Sumberg, tells GlobeSt.com it's easier to get capital today than it has been in the past few years. Lenders in the market are aggressively competing on terms.
“There is still some discipline in the ranks of the lenders generally but they are active and competing in trying to make loans,” Shindell says. “Lenders are still making loans primarily to good strong sponsor groups.”
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