This transaction marks Blue Road's third Miami Beach hotel acquisition over the past 12 months. Recent additions to its collection of 10 existing hotels include The Crest Hotel in September 2016 and Hotel 18 in November 2016. Blue Road re-opened its CASA Boutique Hotel earlier this year, and will open its Berkeley Hotel property (the first IBEROSTAR hotel in Florida), featuring the BLT Steak restaurant, in June 2017.

Berkadia senior managing director Charles Foschini, who recently left CBRE, sees opportunities and the new sources of capital he anticipates coming online for commercial real estate deals in Miami. “While interest rates are climbing, they are still well below historical averages, so buyers who have been sitting on the sidelines may enter the market now, before rates go even higher,” Foschini says. “It's also a good time to refinance or convert bridge loans to permanent loans. And debt, while important, is only one part of the equation; Florida's fundamentals continue to be positive.”

MIAMI—The Redbury South Beach Hotel has traded hands. Blue Road, a Miami development company led by Jorge Savloff and Marcelo Tenenbaum, acquired the asset for $32 million.

Built in 1952, the three-story boutique hotel features 69 rooms, a 12,000 square-foot rooftop pool, and the acclaimed Cleo restaurant, one of OpenTable's “50 Hottest Restaurants in the U.S.” Cleo's Mediterranean-inspired cuisine is created by award- winning Chef Danny Elmaleh, who adapted his original Cleo menu with local South Beach ingredients.

“This acquisition reflects our perpetual confidence in South Beach as a thriving tourism destination, and in the growing popularity of boutique hotels among travelers who enjoy 'off the beaten path' experiences,” says Tenenbaum. “We are also optimistic about The Redbury's well-recognized international brand, and its ability to draw visitors in South Beach and other markets. This belief strongly influenced our decision to annex the former Hotel 18, allowing us to welcome more guests to the hotel.”

The Redbury South Beach Hotel sits at 1776 Collins Avenue next to Hotel 18, another Blue Road property. Over the next six to eight months, Blue Road will demolish Hotel 18 and construct an extension to The Redbury designed by Miami-based architect Kobi Karp, resulting in a total of 138 hotel rooms upon completion.

This transaction marks Blue Road's third Miami Beach hotel acquisition over the past 12 months. Recent additions to its collection of 10 existing hotels include The Crest Hotel in September 2016 and Hotel 18 in November 2016. Blue Road re-opened its CASA Boutique Hotel earlier this year, and will open its Berkeley Hotel property (the first IBEROSTAR hotel in Florida), featuring the BLT Steak restaurant, in June 2017.

Berkadia senior managing director Charles Foschini, who recently left CBRE, sees opportunities and the new sources of capital he anticipates coming online for commercial real estate deals in Miami. “While interest rates are climbing, they are still well below historical averages, so buyers who have been sitting on the sidelines may enter the market now, before rates go even higher,” Foschini says. “It's also a good time to refinance or convert bridge loans to permanent loans. And debt, while important, is only one part of the equation; Florida's fundamentals continue to be positive.”