Sales  ·  Hotels

The Nakash Family Buys Ocean Drive Hotel for $24M

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The Nakash family has expanded its portfolio along South Beach’s famed Ocean Drive.

In partnership with VE Group, the Nakashes paid $23.5 million for The Beacon Hotel South Beach, according to the brokers who arranged the sale, Shani Ben-Hanania and Samuel Heskiel of Beachfront Realty. The deal closed Friday. 

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The five-story Miami Beach building, at 720 Ocean Drive, holds 75 rooms. The Art Deco property was completed in 1937. The seller, an entity managed by Michael Palmer, acquired the 30,305-square-foot hotel for $13 million in 2016, property records show.

The Beacon Hotel sale brings the Nakash family portfolio to over 400 rooms, according to the brokers. On Ocean Drive, the family owns the mansion formerly owned by the late fashion designer Gianni Versace, which now functions as a restaurant, the Breakwater and Victor hotels.  The family also owns the hotel component of The Setai and The Orchid House Hotel on Collins Avenue. 

Last November, a Miami-Dade Circuit Court judge ruled against the three Nakash brothers, Joe, Avi and Ralph, who founded the Jordache Jeans brand, for engaging in and attempting to conceal “an ongoing fraudulent scheme” to evict a restaurant tenant from the Breakwater, The Real Deal reported. The judgment amounted to $17 million.

Julia Echikson can be reached at jechikson@commercialobserver.com.