Florida & Gulf Coast CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
South Beach Hotel Trades for $52.5M
Elliott Investment Management acquired the Gates Hotel South Beach for $52.5 million.
Rockpoint Group sold the 230-room hotel at 2360 Collins Ave. to Elliott Investment Management. Deutsche Bank provided a $82.5 million mortgage to the buyer.
The S. Florida Business Journal reports that while it may seem unusual for the loan to be larger than the amount of the deed, hotel acquisitions frequently include additional compensation beyond the deeded price for the hotel’s non-real estate assets, such as branding and business operations.
The hotel is 141,514 square feet and is on the 1.3-acre lot a block west of the ocean. In 2018, a major renovation of the Gates Hotel South Beach was completed. It was built on the foundation of the Ankara Motel, which dates back to 1954. This is the first time it has sold as that transformation.
The hotel includes a restaurant, a bar, a pool, and 1,200 square feet of meeting rooms.
