Miami Builds Momentum

In the past few months, there have been several positive indications that investors are increasingly confident and willing to pull the trigger on Miami real estate. Last month, there were two major transactions involving the sale of the historic 105-room Raleigh Hotel in Miami Beach, as well as the $78 million sale of  a 10-acres oceanfront development deal on Key Biscayne.

The vacant art deco Leslie Hotel, located at 1244 Ocean Drive in South Beach, finally sold to local hotel group Ocean Hotels Development Corp., headed by Juan D’Onofrio, principal of Alquimia Hospitality Group. The sellers, Leslie Beach Associates LLC, which according to Miami-Dade Public Records was owned by One Liberty Properties, Inc. [NYSE: OLP], a real estate investment trust based in Great Neck, New York.

According to public records, Leslie Beach Associates LLC, was recently released from an outstanding lis pendens notice filed by the Miami-Dade County Property Appraiser, as well as a dispute with South Beach Luxury Hotels LLC. The sellers acquired the hotel in September 2005 for a purchase price of $9.1 million, and sold the hotel for $8.05 million or $421 per square foot. The Leslie, designed by architect Albert Anis and built in 1937, is a fine example of classic Deco in Miami Beach. Other examples of Anis’s work include the Clevelander Hotel and Waldorf Towers Hotel, which are both located on Ocean Drive as well.

Another significant transaction to occur in recent weeks was the sale of  a 6,466 square foot penthouse in the W Hotel South Beach to Chris Rokos, a British hedge fund manager. According to public records, Rokos paid $8,169,000 for the penthouse, complete with 3 bedrooms, 3.5 bathrooms, a private pool and three outdoor terraces. The sale of this condo-hotel unit at $1,263 per square foot is the second most expensive condo deal of the year in Miami Beach.

According to public records, the first closing recorded at the W South Beach was in June, and since, there have been a total of 35 closed sales, including the most recent to Rokos. To date, units have sold to a variety of international buyers, financiers and sports stars, including the likes of football stars Alessandro Nesta of soccer club AC Milan, Tomasso Rocchi of soccer club Lazio, and Ronnie Brown, running back of the Miami Dolphins.

Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

Copyright © Miami Angel Properties, LLC

Investor Confidence Increases in Miami Real Estate

In recent weeks there have been two high profile transactions in the Miami real estate community. In my opinion, these two sales represent both a positive psychological shift as well as boost of investor confidence in the Miami real estate market.

The Sonesta Beach Hotel on Key Biscayne, which was the first major resort hotel to be constructed on Miami’s prestigious Key Biscayne community in 1969, was sold to Argentine investors. According to local sources, Consultatio S.A., a publicly traded company based in Buenos Aires, Argentina, purchased one of the largest remaining develop-able oceanfront sites on Key Biscayne, which consists of the 40-year Sonesta hotel and 10 acres of land, for $78 million.

The Argentine developer was attracted by the opportunity to redevelop the site located at 350 Ocean Drive. In 2005, a local group including Edgardo Defortuna, purchased the Sonesta Key Biscayne property and then closed it down a year later. A couple of years later they secured the necessary approval from the city to build a 165 unit condominium as well as the permit to demolish the hotel. Unfortunately, due to the major cooling off in the housing market the project never got off the ground.

In 2008, the Key Biscayne market experienced several sales of luxury oceanfront condominiums as high as $1,500 per square foot in the Ritz Carlton, Grand Bay or Ocean Tower projects. Clearly, Consultatio S.A. was quick to recognize the opportunity to redevelop this site over the next few years and take advantage of the price of oceanfront real estate that this prestigious island off of downtown Miami commands.

In other news this week, the historic 105-room Raleigh Hotel in South Beach traded to local hotel investment company Brilla Group and AJ Capital Partners, for approximately $30 million. The all cash deal closed this week and has yet to be recorded in the Miami Dade County records.

The seller of the Raleigh Hotel, Andre Balazs and his investment group, acquired the art deco masterpiece designed by Murray Dixon, for $25.2 million in 2002. With occupancy rates and the average daily room rates suffering in the area, the fact that this property traded at $285,000 per room is a huge boost of confidence in the Miami hotel and Miami Beach market. According to local sources, the original asking price of the hotel was $40 million and it had been on the market for over a year.

Are you looking for a Miami or Miami Beach property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

Copyright © Miami Angel Properties, LLC