Reuben Brothers Buys W South Beach Hotel for $425M
By Julia Echikson October 29, 2024 1:18 pm
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Reuben Brothers is making inroads in South Florida, having closed on its purchase of the W South Beach hotel for $425 million, marking the region’s largest hospitality transaction so far this year.
The oceanfront property, at 2201 Collins Avenue in Miami Beach, houses 175 hotel rooms and a Mr. Chow restaurant on the ground floor, in addition to 173 condo units, which the resort manages.
“Our vision is clear: to secure [W South Beach’s] standing as Miami’s leading global destination, while reimagining its future and delivering an unparalleled luxury experience,” Jamie Reuben, principal at Reuben Brothers and son of mogul David Reuben, said in a statement.
Brothers David and Simon Reuben first made a fortune in metals trading, becoming among the richest people in Britain. In recent years, they’ve diversified their wealth to real estate.
This acquisition marks Reuben Brothers’ second major hospitality purchase in Florida. Two years ago, it bought the Chesterfield hotel in Palm Beach for $42 million, which is set to reopen as The Vineta next year.
The brothers also own a 25 percent stake in Fontainebleau Development’s JW Marriott Miami Turnberry Resort & Spa.
The W South Beach transaction trumps Larry Ellison’s $277 million purchase of the oceanfront Eau Palm Beach Resort, though it may not last for long. Brookfield Asset Management is under contract to sell the PGA National Resort in Palm Beach Gardens, Fla., for $425 million.
For the W’s sellers, Aby Rosen and Michael Fuchs’s RFR Holding and David Edelstein’s Tricap, the transaction caps a long saga. In 2004, Tricap bought the 3.5-acre site, which housed a Holiday Inn, for $77 million. RFR Holding later joined in a 50-50 partnership to redevelop the site into a 20-story condo hotel, which was completed in 2009.
The partnership faltered last year, when both filed dueling lawsuits over a failed buyout deal, which they later resolved.
The sale comes as New York-based RFR Holding struggles due to a portfolio that’s heavily invested in office buildings. This summer, at least five loans held by RFR have gone into special servicing or face foreclosure. This month, Cooper Union moved to terminate RFR Holding’s ground lease of the iconic Chrysler Building, after RFR’s Austrian partner Signa filed for bankruptcy.
Representatives for the sellers, RFR Holding and Tricap, confirmed the W South Beach’s sale price, while a spokesperson for Reuben Brothers did not immediately respond to a request for comment.
Eastdil Secured’s Jeff Davis represented the sellers in the W South Beach sale, with Newmark‘s Doug Harmon acting as an advisor.
Julia Echikson can be reached at jechikson@commercialobserver.com.
