Shelborne Hotel. Courtesy photoJoint Venture Buys Miami Beach Art Deco Hotel for $120M
The sale of the Shelborne South Beach is the second top-dollar hotel deal in Miami Beach already this year.
February 05, 2020 at 11:11 AM
3 minute read
The Shelborne South Beach hotel-condominium has been sold for $120 million in the second major Miami Beach hotel transaction of the year.
A joint venture of real estate investor King Street Real Estate GP LLC, property developer and owner Westdale Properties and hospitality firm Cedar Capital Partners bought the Shelborne from an affiliate of W.P. Carey Inc., a New York-based real estate investment trust. The transaction closed Jan. 31.
King Street is the real estate investment arm of New York-based hedge fund manager King Street Capital Management LP. Toronto-based Westdale Properties owns, manages and develops real estate in the U.S. and Canada with a portfolio of 50,000 residential units. Cedar Capital Partners, with offices in New York and London, manages and invests in hotels, mostly in Europe, according to its website.
Miami-based Menin Hospitality, led by managing principal Jared Galbut, will continue to manage the Shelborne.
The Shelborne, a 1940s Art Deco-style hotel, has had multiple facelifts through the years. Of the 275 units, 221 are hotel rooms.
The joint venture paid an additional $20 million for 30 condo units that it will convert to hotel rooms, the Miami Herald reported.
The main transaction breaks down to $542,986 per key for the hotel at 1801 Collins Ave.
The Shelborne was sold on the heels of the completion of renovations, including a $500,000 revamp of its 4,388-square-foot Grand El Dorado Ballroom that incorporated Art Deco details.
The Drawing Room Bar & Lounge has new decor and furniture, and other renovations were to public spaces and guestrooms. The hotel also soon will reintroduce its GUYandGIRL Spa.
"In an effort to grow and evolve with our loyal and discerning clientele, we embarked on a gorgeous interior refresh to match our top-tier level of service," Menin's Galbut said in a news release. "The newly updated spaces seek to revive the Shelborne's vintage-chic legacy of luxury, elegance and impeccable service."
This is the second big hotel deal in Miami Beach this year. The Seagull Hotel just to the north traded in January for $120 million. BHI Miami Ltd., led by Blue Horizon Advisors CEO Nabil Kobeissi, bought the hotel from JHG Holdings Miami Owner LLC, founded by Jeffrey Dagowitz. Dagowitz is principal of New York-based real estate investment and development manager Actium Development Co. That transaction closed at $697,674 per room.
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