By Barbara De Lollis, USA TODAY
In a sign of confidence in the Miami Beach hotel market, new owners have bought the Gansevoort Miami Beach hotel and plan to give an extensive, $100 million revamp.
They’ve also given it a new name – Perry South Beach Hotel.
The massive hotel has 334 rooms, 255 condo units, extensive retail space, three outdoor swimming pools, a rooftop pool and lounge, a private beach and a 42,000-square-foot David Barton gym and spa.
It occupies the entire block between 23rd and 24th streets on Collins Avenue on the edge of South Beach.
The oceanfront property had failed during the recession, but a consortium of Starwood Capital Group (run by Starwood Hotels founder Barry Sternlicht), the LeFrak Organization and Invesco think it has a promising future, their press release says.
They teamed up to buy it from Credit Suisse, which had acquired it through foreclosure in 2010. Jones Lang LaSalle Hotels arranged the sale on behalf of Credit Suisse.
Starwood Capital plans to reposition the hotel by, among other changes, giving it several new and national stores in the retail space along Collins Avenue, as well as new restaurants.
About five blocks away on Collins Avenue, Marriott’s working on building one of its high-end boutique-style Edition hotels.
The Starwood Capital group’s plan is to eventually re-launch the ex-Gansevoort hotel – with a brand name – in 2013.
“This is an incredibly exciting opportunity to create a premier luxury hotel and residences along one of the world’s most beautiful and popular beaches at a time when global interest in the Miami marketplace is close to surpassing its all-time high,” Sternlicht said in a press release. “This is a powerhouse asset with a unique beach footprint in one of the strongest hotel markets in the nation with high barriers to entry.”
Interestingly, the release notes, the three partners had previously bought the loans and real estate assets of a failed bank, including more than 2,000 (Miami condos) condominium units in Miami. The pace at which the condos sold convinced them that it was time to invest further in Miami.