Winter Park Investor Pays $27M for Miami Beach Resi Building
Buyer secured a $35 million loan for potential repositioning
TA Hotel Management Group, an entity managed by Franco Asset Management, paid $27 million for a historic residential building in Miami Beach, with an eye toward renovating it, most likely as a hotel.
The Winter Park-based investor appears ready to reposition the 88-unit building at 2618 Collins Avenue, having secured a $35.3 million mortgage from Western Alliance Bank — about $8 million more than the total value of the sale. The five-story property, formerly known as the Prince Michael Condominium, was constructed in 1951.
In 2018, the Miami Beach Historic Preservation Board approved a $30 million plan to convert the 46,173-square-foot building into an 89-room hotel, though the property was never converted and remains residential as of today.
The sellers, investors Eli Dadon, Richard Waserstein and Avi Dishi, had paid about $10 million to buy units at the property between 2014 and 2017, paying an average of $100,000 per residence, according to The Real Deal. A representative for the sellers could not be reached for comment.
The sale comes just five days after Kolter Hospitality and BH Group purchased a historic boutique hotel, also in Miami Beach. The joint venture paid $24 million for the 84-room Crystal Beach Suites Miami Oceanfront Hotel, located four miles north of Holidays Network’s newly acquired property.
Julia Echikson can be reached at email@example.com.
CORRECTION: This story has been updated to reflect that the owning entity is TA Hotel Management Group, not Holidays Network Group, as was previously stated. The TA Hotel and Franco Asset Management entities share an address and personnel with hospitality group Holidays Network Group, but a legal representative for the firm denied that it was the buyer.