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Boutique South Beach Hotels Trade Amid Heightened Demand

Two prominent buyers acquired boutique hotels in South Beach in separate deals, as demand for such properties continues to rise.

In the most recent of the two purchases, a company linked to the “vulture” hedge fund Alden Global Capital paid $6 million for the 17-suite Villa Paradiso at 1415 Collins Avenue, property records show. Miami Real Estate Investment Corp., led by Lisa and Pascal Nicolle, sold the hotel.

Susan Gale of One Sotheby’s International Realty represented the buyer and seller. Gale, who declined to comment on the buyer, said the property’s zoning made it very desirable. The two-story building, constructed in 1935, is in a mixed-use entertainment (MXE) district in Miami Beach where short-term rentals are allowed.

The buyer lists the address of Twenty Lake Holdings, the real estate company affiliated with Alden Global Capital. It plans to renovate the building and operate it as short-term rentals, Gale said.

“These types of properties that have zoning for short-term rental are very difficult to find. I have a list of people who want to buy them. They’ll buy as many as I have,” Gale said. “It’s a coveted type of property, and it has to have the right kind of zoning.”

The Nakash Family recently paid $6 million for the 10-room, three-villa property at 1350 Collins Avenue, near their Casa Casuarina hotel, which was previously known as the Versace Mansion, records show.

Carol Invest USA, led by Emanuela Verlicchi Marazzi, sold the 6,340-square-foot building at a loss compared to the $7.5 million it paid for the property in 2015.

Architect Wallace Tutt, who designed the Versace Mansion, also designed the 1350 Collins property, which is called the Orchid House Hotel. It was completed in 1930 and can operate as a private club or home, according to a press release about the deal. Short-term rentals are also allowed, said Lee & Associates broker Matthew Rotolante.


Source:  The Real Deal

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