Key International and Wexford Buy Pompano Beach Hotel for $54M
By Julia Echikson December 2, 2021 6:10 pm
reprints
Key International and Wexford Real Estate Investors purchased a Pompano Beach oceanfront hotel for $54 million, the buyers announced.
The 219-key Fort Lauderdale Marriott Pompano Beach Resort & Spa is located at 1200 N Ocean Boulevard, between NE 12th and 13th streets. The hotel includes three buildings over 4.2 acres, a spa and two restaurants.
The buyers are planning a “major renovation” by creating a new pool deck and renovating the rooms and restaurants. Synovus provided acquisition financing, which also includes funding for the renovation, according to the buyers. A representative for the buyers declined to divulge the amount.
The seller, New York-based real estate investment firm Pan Am Equities, purchased the property for $45.1 million from the Carlyle Group in 2018, per property records. A representative for Pan Am did not immediately respond to a request for comment.
APEX Capital Realty’s Miguel Pinto and Garrick Benabe represented the seller. Ovy Anghel, also of APEX, joined the pair in representing the buyers.
The purchase marks the third deal between Miami-based Key International and West Palm Beach-based Wexford Real Estate Investors. Together they own resorts in Panama City Beach, Jacksonville and Fort Lauderdale.
On its own, Key International owns two Miami Beach hotels, Eden Roc Resort and Marriott Stanton Hotel South Beach, managing over $1.5 billion in real estate assets overall, according to the company. Wexford Real Estate Investors, an off-shoot of Wexford Capital, says it has invested over $650 million in real estate equity since 2010.
Pompano Beach, a sleepy seaside town between Boca Raton and Fort Lauderdale, is experiencing major redevelopment.
Less than a mile from the Marriott hotel, the Related Group is developing two high-end condos, for which it secured a $91 million construction million for one of the projects in September. Fortune International Group and Oak Capital are developing a Ritz Carlton-branded residential high-rise.
In recent months, South Florida hotel sales have picked up as travelers returned following the initial COVID-19 vaccine rollout.
Pebblebrook Hotel Trust said it purchased the Margaritaville Hollywood Beach Resort for $270 million in September, making it South Florida’s most expensive hotel acquisition of the year so far. A month later, Wheelock Street Capital paid $106.4 million for a West Palm Beach hotel. Swire Properties sold a Brickell hotel for $174 million in October as well.
Julia Echikson can be reached at jechikson@commercialobsever.com.
