A joint venture between Ziel Feldman's HFZ Capital Group and FIG LLC acquired The Shore Club at 1901 Collins Ave. in Miami Beach, FL from Philips International for $175.3 million, or about $544,000 per room.
Shore Club is a 309-key, 18-story luxury hotel built in 1939 on 2.7 oceanfront acres in the Miami Beach submarket of Miami/Dade County. Renovated in 2001, the 300,624-square-foot property is close to Ocean Drive, the Art Deco District, South Beach nightlife and Lincoln Road retail.
"We have an extraordinary, once-in-a-lifetime opportunity to re-imagine and reposition a world-class property in a market that has seen continued demand for luxury properties," said Feldman. "The development of oceanfront real estate on South Beach has been fueled by an expanding market for business and tourism, accessibility to international airports and year-round warm weather."
Philips International will be involved in the new ownership group, and hospitality firm Morgans Hotel Group will continue to manage guest operations at the property.
The acquisition, one of the most expensive hospitality deals in the South Florida market, was financed in part with the assumption of an existing $161 million loan held by a group of lenders led by Fortress Credit Corporation and a new $12 million loan from the same group of lenders.
Howard L. Michaels, chariman of The Carlton Group arranged the sale and recapitalization.
Please see CoStar COMPS #2923113 for additional information on this transaction.