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South Beach Hotel Could Be Seized In $7.4M Foreclosure

A hostel in the South of Fifth neighborhood of Miami Beach has been targeted in a $7.39 million foreclosure lawsuit.

Fort Lauderdale-based Courthouse Square Holdings LLC filed a foreclosure complaint Feb. 27 against 235 Washington Holdings. It concerns the 48-bed hostel with a small restaurant at 235 Washington Ave. It’s currently called the Onu Hotel, although it’s also been known as the SoBe Hostel.

Miami-based Dade County Federal Credit Union awarded a $7.5 million mortgage to the borrower in 2019, the same year 235 Washington Holdings purchased the hostel for $10 million. It subsequently performed renovations to the 9,918-square-foot building.

 

Source:  SFBJ

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Intervest Seeks to Convert Historic Miami Beach Rental into Hotel

According to a document submitted to the city’s Historic Preservation Board, an Oklahoma-based investor wants to transform a historic apartment building in Miami Beach into a boutique hotel.

The 1926 construction of the 56-unit rental building in the Mediterranean Revival style is located at 337 20th Street, one block south of the Bass Museum. Eight years after investing $11.8 million in the 34,979-square-foot structure, Intervest Properties is requesting permission to convert it into a 76-room hotel.

According to Intervest’s attorney Michael Larkin, who did not immediately respond to Commercial Observer’s request for comment, the proposed plans will maintain a large portion of the three-story building’s exterior and interior, keeping “at least 75% of the front and street wide walls” and “at least 66 percent of the remaining interior side walls.” This complies with the district’s historic redevelopment regulations.

The rooftop will have a deck with a pool and a garden.

The Miami Beach Historic Preservation Board will hear the bid March 14.

 

Source:  Commercial Observer

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Julia Tuttle Causeway May Be In Line For An Overhead Expressway

Spurred by growing population and area employment demand, the Florida Department of Transportation (FDOT) is kicking off public engagement to evaluate planned upgrades to I-195 to add operational efficiency and enhance connectivity and road safety.

One of many possibilities could be an overhead viaduct in the highway’s median.

According to the Miami-Dade Transportation Planning Organization’s Long Range Transportation Plan, the county’s population is expected to increase by 67% and employment by 38% by 2045.

The future project along I-195/State Road 112 from 12th Avenue in Miami to Alton Road in Miami Beach is beginning its project development and environmental (PD&E) study to determine the conceptual design.

“Within the limits of the area, we will address operational efficiencies within the main line and also the exteriors nearby; enhance system linkage and regional connectivity; enhance multimodal connectivity, as well as improve the overall safety of the corridor,” said Ivette Funtenellas, FDOT project manager. “It will also relief existing and future congestion for future travel demand, as a result of the population and employment growth along the I-195, as well as connectivity between Miami and Miami Beach.”

The study would build upon construction and engineering company AECOM’s June 2020 comprehensive planning study, commissioned by FDOT, where alternatives were recommended, including development of an elevated viaduct in the median to provide direct connectivity between Miami Beach and I-95, circumventing all the service interchanges and operational backups that take place along the interstate and its on and off ramps, said Robert Linares, executive vice president of transportation at metric engineering and consultant project manager for this project.

The PD&E study would collect all traffic data, engineer data, surveys and data of existing conditions at the I-195; it would develop a preliminary design; and it would conduct an environmental analysis, before starting the design phase.

Issues to be studied include the lack of bicycle and pedestrian connectivity between Miami and Miami Beach – which could create a connection between existing bicycle lanes in Miami Beach – and it would look into car crash data. In addition, the project would look into a possible access point from Miami Beach to the express lanes off I-195.

From 2015 to 2019, there were 3,461 crashes along the I-195, in 37 locations and seven segments of the interstate, according to FDOT.

“This is above the statewide average for this type of facilities,” said Mr. Linares. “We’re going to be looking at some of the major interchanges, primarily the systems assistance interchange with I-95, and a number of service interchanges with Miami Avenue, Biscayne Boulevard, and Alton Road.”

As part of the PD&E study, the department would look into transportation systems management operations to “find ways to get as much efficiency out of the existing infrastructure as possible, with minimal capital improvements. Some of that may be through the use of intelligent transportation systems, such as camaras,” said Mr. Linares, before the design of the breakthrough improvements take place.

The future design is intended to also build upon projects that are to be done soon, such as the Bus Express Rapid Transit Network, known as the “bus-on-shoulder” project of the Strategic Miami Area Rapid Transit (Smart) Plan, to be done by April, as well as drainage and overall water quality, with stormwater runoff flowing into Biscayne Bay Aquatic Preserve, part of the Outstanding Florida Water, and other resiliency initiatives by private agencies, and the cities of Miami and Miami Beach.

The project also crosses critical habitat areas for manatees, fish, seagrasses, corals, mangroves and other types of marine life and areas of environmental concern, said Caitlin Hill, environmental scientist and field operations manager at Metric Engineering.

Other capacity improvements that are to be evaluated by FDOT are the widening the Julia Tuttle Causeway and a potential widening SR 112 on the west; the widening of some on and off ramps at intersections of the I-195, and the potential for a westbound city road from Miami Beach.

Some other projects by FDOT in the area include a future Golden Glades Interchange Enhancement Project; the I-395/SR 836/ I-95 design-built signature bridge project; the Smart Plan’s Beach corridor; the Alton Road Reconstruction; the Tri-Rail Downtown Miami link extension; and the City of Miami Beach 41st Streetscape Improvement project.

FDOT is working on putting together community advisory groups, composed of business owners, residents, “anyone of interest that wants to sit on that board, to help guide the project’s development,” said Mr. Linares.

There are to be two additional public meetings, organized by FDOT, through the end of the fourth quarter of 2024.

 

Source:  Miami Today

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AT&T Could Sell Miami Beach Site To Developer

AT&T has sold an old BellSouth telecom site in Miami Beach to developers to build a condo.

The city’s Design Review Board will consider the application for the 24,800-square-foot lot at 6940 Abbot Ave. on March 8. Dallas-based AT&T agreed to sell the property to 6940 North Beach LLC, co-owned by Eduardo Otaola of Constellation Group and Jose Boschetti of Boschetti Group. Otaola said another co-owner in the deal is Rainer Viete of Vietmar.

Otaola noted the land is in Miami Beach’s North Beach Town Center district, which has a quicker development approval process. The project could receive final approval before the DRB on March 8, he said.

Otaola said his team recently acquired the property for $5.5 million. The deed has yet to appear in county records.

The site plan calls for a 10-story building totaling 134,573 square feet with 96 condos, 2,192 square feet of retail and 90 parking spaces. There would be a lobby on the ground floor with coworking space and a rooftop amenity area featuring a pool, a fitness center and a pickleball court.

Otaola said he’s also considering an in-house golf cart that would transport residents to the beach three blocks to the east.

The condos would range from 437-square-foot studios to 1,030 square feet with two bedrooms.

Otaola said the condos would start for under $1 million. He’s still working on a branding concept. His team is likely to permit short-term rentals in the building. The North Beach Town Center district permits short-term rental condos, he noted. Of course, each condo building has association rules governing the frequency of rentals.

“You are seeing all this development going up in Miami Beach with condos $1 million and above,” Otaola said. “You are leaving aside a lot of interest from buyers on the younger side or on the lower end of the income demographic where that’s above their price point. There’s a ton of appetite in Latin American to enter a gold standard market like Miami Beach.”

He plans to launch sales for the condo in the second quarter of this year.

Miami-based Arquitectonica designed the project and Miami-based attorney Tracy R. Slavens represents the developer in the application.

Source:  SFBJ

 

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South Beach Hotels Sell For $335 Per Room

The South Beach Plaza Hotel and the neighboring South Beach Plaza Villas, only a block from famous Ocean Drive, sold for $26.5 million.

Kentucky Zinc LLC, Zaynab Investments, NC Capital LLC and ABH Corp. of New York, respectively managed by Fahr Juneja, Abdul Buridi, Naveed Chowan, and Arif Butt, were the sellers. The 79 hotel rooms at 1401 and 1411 Collins Ave. were purchased by 1401 Collins Avenue LLC, managed by Kenneth Lipschutz, the head of Stamford, Connecticut-based Blue Suede Hospitality Group. Property data firm Vizzda confirmed the buyer and seller information.

The price equated to $335,443 per room.

The hotels last traded for $12.25 million in 2009, more than doubling in value.

Built between 1934 and 1936, the hotels total 32,330 square feet. They’re situated on a 21,000-square-foot lot not far from the beach.

 

Source:  SFBJ

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Mixed-Use Project Proposed To Replace Parking Lot In South Beach

The owner of the Washington Park Hotel in South Beach is proposing a 7-story mixed-use project on an adjacent municipal surface parking lot.

WPH Properties, LLC submitted the proposal for a 99-year lease of the city property.

The proposal include:

  • 135 structured parking spaces in three levels, including a single subterranean level
    utilizing mechanical lifts (triple the number of spaces in the existing lot)
  • ground level commercial space
  • three levels and thirty-three units of workforce housing units or office space (with the choice made by the city)
  • a top-level office/hotel use level
  • rooftop amenity area for hotel and building tenant use

In a letter, the developer wrote:

Our client has already invested over $52 million in the purchase and extensive renovations to
the Washington Park Hotel complex. We estimate the costs associated with the construction
of the new building at approximately $25 million.

This new project is not viewed by the Proposer as a profitable real estate development project
and the rate of return is not the primary motivation. Rather, because of the location of the
parking lot, the aim is to maximize and optimize the use of the combined properties as a single
unit.

Beilinson Gomez is the architect.

The city’s Finance and Economic Resiliency Committee is scheduled to discuss the proposal at a January 27 meeting.

 

Source: The Next Miami

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RFR, Tricap File Dueling Lawsuits For Control Of W South Beach

New York developers Aby Rosen and David Edelstein are in a high-noon standoff over a proposed buyout deal for the W South Beach — with a maturing loan raising the stakes.

Entities controlled by Edelstein, principal of Tricap (formerly Tristar Capital), and Rosen, co-founder and principal of RFR Realty, recently filed dueling lawsuits against each other in Miami-Dade Circuit Court and New York Supreme Court.

The W South Beach co-owners are in a hostile stalemate over Tricap’s $200 million proposal to buy RFR’s interest in the luxury hotel at 2201 Collins Avenue in Miami Beach.

A Tricap spokesperson said Edelstein’s firm sought legal action in Miami-Dade to “enforce a contractually agreed-to process for buying or selling the hotel to each other,” and that RFR followed up with its own complaint in New York, “apparently seeking to avoid litigating the matter in Florida.”

Last week, Tricap’s entity sued RFR’s entity in Miami-Dade, seeking a court order to enforce an agreement the partners allegedly reached in October. The suit also seeks to require RFR to either agree to extend a $157.4 million Citibank mortgage due on Jan. 25, or come up with its share of the funds to pay it off.

RFR has “repeatedly refused” to cooperate with Tricap on the loan issue as a tactic to obtain a more favorable buyout at “an inflated price,” the Miami-Dade lawsuit states. If Tricap refused, RFR threatened to “burn the house down,” the complaint also states.

On Monday, RFR’s entity sued Tricap’s entity in New York, accusing its partner of using the buyout negotiations as a stall tactic to extend the loan’s maturity date, which was originally set to expire in August of last year.

RFR claims it was “ostensibly negotiating in good faith,” while Tricap was “merely stringing [RFR] along in an effort to extract additional concessions,” the New York lawsuit states. Tricap walked away from Tricap’s $200 million offer last month, RFR also alleges.

In 2009, the New York firms co-developed the 395-room W hotel.

 

Source:  The Real Deal

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Hotel Development At Miami Beach Convention Center To Move Forward

Construction of a centerpiece hotel for the Miami Beach Convention Center will move forward this year, co-developers Terra and Turnberry announced.

Miami-based Terra and Aventura-based Turnberry said they hired Dallas-based Balfour Beatty as general contractor of the project and site work has already begun. They expect to start vertical construction of the Grand Hyatt Miami Beach Convention Center Hotel later this year and complete the project in 2025.

The 17-story hotel will have 800 rooms, making it the fifth-largest hotel in South Florida and the second-largest hotel in Miami Beach, according to the Business Journal‘s Book of Lists.

The hotel will include four floors of meeting and ballroom space, a resort-style pool deck, a signature restaurant, retail space, a lobby lounge and bar, and a sky bridge with access to the convention center.

It will be developed at the corner of 17th Street and Convention Center Drive.

The project will be privately funded.

 

Source:  SFBJ

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AIRC Buys Miami Beach Apartment Complex For $250M

An affiliate of Apartment Income REIT Corp. acquired the Southgate Towers apartment complex in Miami Beach for a combined $250.47 million.

The Denver-based multifamily company announced in November that it had the property under contract for $298 million. However, the two deeds recently filed in Miami-Dade County indicate the price was $250.47 million.

Southgate Towers LLLP and Gumenick Family Investments No. 2 Ltd., both affiliates of Gumenick Properties in Richmond, Virginia, sold the 495-unit apartment complex at 910 West Ave. and the 219,270-square-foot parking garage at 959 West Ave. to Southgate Towers LLC, an affiliate of AIRC. The buyer assumed a $101.2 million mortgage with Metropolitan Life Insurance Co.

Totaling 554,694 square feet, Southgate Towers was built on the 4-acre site along Biscayne Bay in 1958. Gumenick Properties completed a $40 million renovation of the property in 2016 that included the new parking garage.

 

Source: SFBJ

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Developer Obtains $277M Construction Loan For Hotel And Condo In Miami Beach

Oko Group and Access Industries obtained a $277.2 million construction loan for the Aman Hotel & Residences along the ocean in Miami Beach.

Bank OZK assumed the $34.8 million mortgage from 2020 and boosted it to $277.2 million. The borrower on the 1.7-acre site at 3425 Collins Ave. was 3425 Collins LLC and various affiliates linked to Oko Group, led by billionaire Vladislav Doronin, and Access Industries, led by Len Blavatnik.

Located in the Faena District, the site previously had the historic 16-story Versailles Hotel. It will be renovated and rebranded as the Aman Hotel for this project, plus the developer will build a 16-story condo tower.

The hotel tower will feature 56 rooms and 22 condos, while the stand-alone condo will have 41 units. It was designed by Miami-based Revuelta Architecture and Japanese architect Kengo Kuma.

 

Source:  SFBJ

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