Multiplan launches sales of boutique luxury condo project on Ocean Drive

Multiplan Real Estate Management, the developer of 57 Ocean in Miami Beach, is now betting on a boutique luxury condo project on Ocean Drive in the South-of-Fifth neighborhood.

José Isaac Peres

José Isaac Peres

The Brazilian real estate developer, led by José Isaac Peres, is launching sales of Ocean Park South Beach at 304-312 Ocean Drive in South Beach, The Real Deal has learned.

The four-story building will have 10 units, including two duplex penthouses. Prices range from $1.5 million to $6.8 million, said Marcelo Kingston, managing principal of Multiplan Real Estate Asset Management.

Eloy Carmenate and Mick Duchon

Mick Duchon and Eloy Carmenate

Douglas Elliman’s Eloy Carmenate and Mick Duchon are handling sales.

The project marks the first to launch in the luxury market so far this year. And despite the condo market slowdown, Kingston said Ocean Park South Beach’s location, across the street from the ocean and Marjory Stoneman Douglas Park and close to shops and restaurants, with little competition in new luxury projects, will give it an advantage. He said 20 percent of the units, or two condos, have been reserved by friends and family buyers from Miami and Brazil.

“In our view, it’s good timing, a unique location, singular product and hard to replicate,” Kingston said.

Two- and three-bedroom units will range from 1,117 square feet to 1,715 square feet, with terraces ranging from 267 square feet to 1,194 square feet. Features will include private elevators, 10-foot ceilings, floor-to-ceiling windows, light solid oak wood and natural stone flooring, Wolf and Sub-Zero appliances, and kitchens by Poliform with Matte Touch cabinets.

The four-bedroom penthouses will each have 2,393 square feet with 1,564 square feet of terraces. The penthouses will include 12-foot ceilings, an upgraded appliance package with a tower wine cooler and double-refrigerator unit, and a rooftop deck with a private spa pool, summer kitchen and powder room.

Ocean Park South Beach will also have a second-floor amenity deck with a 36-foot pool, spa, Jacuzzi, poolside summer kitchen and outdoor dining area and lounge.

The project is designed by Revuelta Architecture International, with interiors by Marcela Lombana and landscaping by Gardner Semler Landscape Architecture.

Rio de Janeiro-based Multiplan is one of the biggest shopping mall owners in Latin America, and has also built a number of mixed-use projects connected to retail developments. In Miami Beach, Multiplan built Il Villaggio, a luxury condo and retail development at 1455 Ocean Drive. Forbes currently pegs Peres’ net worth at $1.7 billion.

The company is self-funding the Ocean Drive development, Kingston said. That allows the developer to “push the development schedule, not relying on banks, and takes away the lack of confidence buyers have not knowing the schedule.”

Construction is expected to begin in the fourth quarter, with completion in December 2021, he said.

Multiplan is also developing 57 Ocean, an 18-story, 70-unit luxury oceanfront condo project at 5775 Collins Avenue. Kingston said sales are approaching 50 percent. The project is starting to go vertical, and is expected to be completed in September 2021, Kingston said. Fortune Development Sales is handling sales.

The Ocean Drive project has been in the works for about a year, since Multiplan purchased the two adjacent empty lots for $10 million in December 2018. It’s within the Ocean Beach Historic District, and received approval from the historic preservation board last year.

Carmenate and Duchon have handled sales at other new Ocean Drive developments such as 1500 Ocean Drive, Il Villaggio and Glass. They said they will be targeting local buyers, including empty nesters from the surrounding areas who are looking for boutique buildings, as well as buyers from the Northeast.

“We find the South-of-Fifth area to be very active,” Duchon said.

“It’s priced right for the neighborhood,” added Carmenate. “You can’t get a three-bedroom for $2.65 million in new construction in South-of-Fifth.”

Historic preservation board rejects Blue Road’s plans for South Beach hotel

“We’re trying to save the historic district, not block or restrict anything”: Jack Finglass

Marcelo Tenenbaum and Jorge Savloff with the current building next to a rendering of the project

Marcelo Tenenbaum and Jorge Savloff with the current building next to a rendering of the project

Blue Road’s plans to convert a 34-unit South Beach apartment building into a 116-room hotel hit a snag after the project failed to get the minimum votes needed from the Miami Beach Historic Preservation Board.

The board voted 4 to 3 this week to approve an amended version of Blue Road’s plans to turn the 61-year-old Park Terrace Apartments at 355 19th Street into the more contemporary Park Avenue Hotel.

However, because the building falls into a historic district, Blue Road needed five affirmative votes from the historic preservation board to obtain the demolition permits needed to move forward. Following the vote, the board “continued” the item until September 9th.

It’s the second time the project has been continued. The board previously continued the project at its May 14 hearing after board members expressed another set of concerns over the proposed hotel’s design.

“They have to do their job. We have to do our work. We will find a compromise,” Marcelo Tenenbaum, a principal of Blue Door, told The Real Deal after the vote.
The project’s architect, Luis Revuelta of Revuelta Architecture International, admitted he was surprised.

“I think we came today with a high level of confidence that we were going to get approved,” Revuelta said.

But the three dissenting board members — Nancy Liebman, Jack Finglass, and Kirk Paskal — expressed concern that not enough of the original 1951 post-World War II structure was being preserved or utilized in the new hotel’s design. Under the project’s latest plans, 70 percent of the original building would be demolished.

“This is something I would expect from a more, non-historic district,” Paskal said. “A way to pay homage to something by leaving a little piece.”

Tenenbaum and Blue Road co-principal Jorge Savloff paid $14.27 million for the two-story, 22,000-square-foot apartment building in March 2018. The structure is two blocks away from the newly renovated Miami Beach Convention Center as well as the site of a future 800-room Miami Beach Convention Center Hotel that will be co-developed by David Martin and Jackie Soffer.

Revuelta presented plans for a five-story 44,466 square foot complex that included a rooftop pool deck and two outside elevator towers. It was a smaller version than what was proposed in May, and now includes a garden courtyard instead of a below grade parking area. The remnants of the original apartment building would be transformed into a hotel lobby and gym.
Liebman disapproved of the design, saying that it didn’t belong in a historic district. She also ridiculed the notion that a 116-room hotel is “boutique” as Blue Road portrayed it. “This looks like a giant box,” Liebman said.

Blue Road’s attorney, Alfredo Gonzalez, insisted that a hotel needs at least 100 rooms to “make it in today’s market.”

“A boutique hotel has to have 100 rooms?” Liebman said while rolling her eyes. “Only in Miami Beach. Save it. I can’t support this today or tomorrow.”

After the Liebman-Finglass-Paskal side won, Reveulta asked for instructions. Finglass replied that the developer should strive to use more of what’s already present. “You’ve got a huge historic piece over here. Make use of it,” Finglass told Revuelta, later adding: “We’re trying to save the historic district, not block or restrict anything. Use what you’ve got to make the district matter.”

Revuelta told TRD that he tried to address the issues raised during the May 14 meeting. “I thought we had done everything possible to react to staff and board comment,” he said, “and there is no way we can make this only two stories. It kills the deal.”

“We need a bigger scale to address food and beverage, to address operations,” Tenenbaum further explained.

Nevertheless, Tenenbaum is determined to solve “the conflict of different ideas” and come up with a design that works. “We will be back in September and we will try to do some adjustments and, hopefully, they will approve.”

Back again: Michael Shvo, partners to buy oceanfront Richmond Hotel in South Beach

The same partnership paid $103M for the Raleigh in February

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Developer Michael Shvo and his partners are bulking up in South Beach. The partnership is under contract to buy the oceanfront Richmond Hotel, marking the group’s second purchase along Collins Avenue this year, sources told The Real Deal.

In February, Shvo’s New York-based SHVO, Bilgili Holdings and Deutsche Finance America paid Tommy Hilfiger and the Dogus Group $103 million for the 83-room Raleigh Hotel. The property is next door to the Richmond Hotel.

The Richmond, at 1757 Collins Avenue, has 92 rooms in a four-story, nearly 52,000-square-foot building. It was built in 1941 and sits on a 32,670-square-foot lot, records show.

The sellers are Patti and Allan Herbert, who represent the third generation of the family that has owned the hotel since its inception, according to the Richmond’s website. The Herberts are major benefactors to the Frost Science Museum and the University of Miami, where they donated $8 million to name the Patti and Allan Herbert Wellness Center.

No sale price for the Richmond has been disclosed. The Raleigh, which sits on a larger, 60,541-square-foot lot, sold at $1.24 million a key. It had been closed since Hurricane Irma hit South Florida in September 2017.

John Wijtenburg, director of Colliers International South Florida’s hotel group, estimates that the Richmond could sell for about $600,000 a key or $55 million. “It needs a good bit of work to come up to the standards of competitive properties in the area, but it’s a well known asset in that market,” he said.

The Raleigh acquisition marked the first in South Florida for Shvo, chairman and founder of SHVO, and his partner, Serdar Bilgili, the owner of the Istanbul-based real estate private equity firm BLG Capital.

In New York, Shvo’s projects include the Getty building in West Chelsea. The same partnership that acquired the Raleigh and is now acquiring the Richmond also paid $135 million for the office portion of 685 Fifth Avenue in 2018. The group recently won approval to convert that space to residential condos.

Other oceanfront hotels near the Raleigh and Richmond that have sold in recent years include the Sagamore Hotel, which Fort Lauderdale-based InSite Group and New York-based EL Group bought for $63 million in 2016; and the Shore Club Hotel, which New York-based HFZ Capital purchased for $175.3 million in 2014.

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Tommy Hilfiger group sells Raleigh Hotel in South Beach to Michael Shvo and partners for $103M

Tommy Hilfiger group sells Raleigh Hotel in South Beach to Michael Shvo and partners for $103M

83-key Art Deco hotel sold for $1.24M a room, likely a record in Miami area

Tommy Hilfiger, Michael Shvo and the Raleigh Hotel

Tommy Hilfiger and Dogus Group sold the Raleigh Hotel in Miami Beach to a partnership led by New York developer Michael Shvo for $103 million.

The deal breaks down to about $1.24 million a key, one of the most expensive hotel sales on a per-room basis in Miami-Dade County.

Shvo, Bilgili Group and Deutsche Finance Group acquired the 83-room Art Deco hotel at 1775 Collins Avenue, according to a release.

The Raleigh had been closed since Hurricane Irma hit South Florida in September 2017. Hilfiger said in a statement that despite working to restore and reopen the hotel, “this was an offer we just could not refuse.” The Wall Street Journal first reported the sale.

Hilfiger’s group paid $67.5 million for the property in 2014 and planned to turn the hotel, built in the 1940s, into a private club. But the property was rumored to be for sale following Hurricane Irma a year-and-a-half ago.

Shvo, chairman and founder of SHVO, said his group is committed to “bringing about its next renaissance,” calling the hotel “a nostalgic icon and a symbol of twenty-first century style and luxury.”

His business partner in the deal, Serdar Bilgili, is the owner of the Istanbul-based real estate private equity firm BLG Capital.

The Raleigh acquisition marks the first for Shvo in South Florida. In New York, his projects include the Getty building in West Chelsea. The same partnership that acquired the Raleigh also paid $135 million for the office portion of 685 Fifth Avenue in 2018.

In Miami, the deal could mark a new per-room record for hotel trades. Billionaire Michael Dell was set to buy 1 Hotel South Beach for about $500 million, or $1.2 million per key, but that deal has not yet closed.

Marriott pays $23.5M for South Beach hotel, plans renovation

The former Edgewater Hotel in South Beach
The Edgewater Hotel in South Beach is about to get a facelift and new name now that it’s been sold for $23.5 million to Marriott International’s timeshare division.
Marriott Vacation Club bought the 1930s-era building and its 49 suites, located at 1410 Ocean Drive across the street from Lummus Park. Marriott spokesperson Ed Kinney told The Real Deal that the 49 units were sold by a single seller, though he declined to name the entity. However, an Israeli company called the El-Ad Group lists the property under its portfolio holdings.
The hotel will now be known as the Marriott Vacation Club South Beach and is already taking reservations, according to a news release. Marriott will renovate the hotel’s suites and common areas through 2016.
“We are excited to offer our owners and guests another new addition to our collection of properties around the world that puts them right in the heart of South Beach and all it has to offer to visitors,” Stephen P. Weisz, president and chief executive officer of Marriott Vacations Worldwide, said in the release.
Marriott Vacation Club was originally committed to purchasing a separate 182-unit building in South Beach, Kinney said, but the deal fell through for undisclosed reasons. Then the opportunity to buy the Edgewater Hotel appeared, and Marriott closed on it.
“It’s not very big by our standards,” he told TRD.” But… we feel it’s a great way to get into the market.” 
As part of the re-branding, Marriott Vacation Club will open an off-site sales center for timeshares at the hotel. Kinney said the company is looking at a couple of nearby locations that they will close on in the near future.  — Sean Stewart-Muniz

Source: The Real Deal Miami