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Trio Of Boutique Miami Beach Hotels Sell For Combined $100M

Ahead of Florida’s peak winter tourist season, a trio of historic, boutique Miami Beach hotels traded hands recently for a combined $100 million, property records show.

In the most recent sale that closed last week, Boca Raton-based investor Opterra Capital paid $28 million for a Hilton Garden Inn-branded hotel in the Mid Beach neighborhood, located along a strip of resorts at 2940 Collins Avenue.

The art deco-style property, originally constructed in 1935, holds 96 rooms. The seller, Baywood Hotels, bought the 40,300-square-foot building for $12.5 million in 2013.

Across 30th Street at 3010 Collins Avenue, a joint venture between Assouline Capital and August “Gussie” Busch dropped $33 million for the Red South Beach Hotel — exactly triple its last sale price in 2009. The seven-story hotel, erected in 1939, features 110 rooms.

Busch is a descendant of Adolphus Busch, who co-founded beer giant Anheuser-Busch, while Assouline Capital is a Coral Springs-based real estate investment firm led by Tom Assouline.

In the largest transaction, Catalyst Capital Group, a Canadian private equity firm, bought The Balfour Hotel (pictured above) for $39 million. Built in 1940, the Balfour consists of two buildings along Ocean Drive in Miami Beach’s upscale South of Fifth neighborhood.

The 81-room property underwent a $4 million renovation, reopening in 2021, according to Lodging Magazine. Two year earlier, the seller, Moto Capital Group, paid $34.7 million for the 42,206-square-foot hotel.

Miami’s hospitality industry is recovering well post COVID-19.

More than 24,000 tourists came to Miami-Dade County in 2021, about the same as pre-pandemic levels in 2019, according to data from the county’s tourism board. The number of Miami hotel rooms booked this summer was more or less on par with the busy winter months.


Source:  Commercial Observer

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Busch Family Partners With Assouline Capital To Buy Red South Beach Hotel

Tom Assouline and members of the Busch beer family hope to make a splash in Miami Beach with their purchase of the Red South Beach hotel for $33 million.

A joint venture of Assouline Capital and Busch Real Estate, led by August “Gussie” Busch, paid $300,000 per key for the 110-room hotel at 3010 Collins Avenue, they said.

The buyers financed the deal with a $31 million loan from Michael Dell’s MSD Partners. Max Ralby of HKS Real Estate Advisors in New York arranged the financing.

The seller was 3010 Collins LLC, an entity led by French developer Simon Nemni, records show. The Moderne-style building, which in past lives has been called the Munroe Towers and The Villa Capri All Suites Hotel & Beach Club, among other names, was built in 1939 by Charles Rubin and designed by T. Hunter Henderson, according to the hotel’s website.

The property, which comes with a pool, restaurant and gym, last sold in 2009 for $9 million, records show. The buyers plan to renovate the property and reposition it by the end of next year, they said, though they will continue to operate it as a hotel.

Busch, a former football player at the University of Alabama, reality TV star and great-great-grandson of Anheuser-Busch co-founder Adolphus Busch, said his family’s investment marks the first of “many” to come in Miami Beach. The joint-venture partners said they’re looking at additional hotels, as well as multifamily properties.

Brigitte Lina with One Sotheby’s International Realty and Olivier Hannoun of Champagne & Parisi Real Estate co-brokered the deal.

Assouline said he’s been targeting underperforming hotels since the start of the pandemic. Last year, Assouline’s LWHT Property Management, a Coral Springs-based firm, paid $27.2 million for six boutique hotel and motel properties in Fort Lauderdale Beach. He has acquired and managed about $150 million worth of real estate in South Florida, he said.

The Busch family, among the wealthiest in the U.S., ran Anheuser-Busch until 2008, when Belgian-Brazilian conglomerate InBev completed a $52 billion hostile takeover of the company. A number of family members and heirs to the beer fortune have owned homes in South Florida.


Source:  The Real Deal

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