Ronny Finvarb, Director, The Finvarb Group, in front of The Landon Bay Harbor-Miami Beach at 9650 East Bay Harbor Drive (The Finvarb Group, LoopNet, iStock)
A Bay Harbor Islands-based hotel development and investment firm makes a $ 10 million bet in their own backyard.
The Finvarb Group, led by Ronny Finvarb, bought The Landon Bay Harbor-Miami Beach at 9650 East Bay Harbor Drive, The Real Deal has learned. The seller is BHI Hotel, a company run by Samuel Spiritos, a managing partner of Shulman Rogers, a law firm in Potomac, Maryland.
Finvarb Group paid around $ 219,022 per room for the two-story boutique hotel built in 1946 with 46 keys. In 2007, the BHI Hotel was recorded to pay $ 3.9 million, or $ 84,783 per room. The 22,729-square-foot building also has commercial space on the ground floor leased to The Palm-Miami restaurant.
“We are very pleased to add this new hotel and restaurant to our portfolio, especially since it is literally in our backyard,” said Ronny Finvarb via SMS. “The Palm Restaurant has been an integral part of the neighborhood for decades, and we plan to activate the rest of the property and take it to another level.”
The property was listed by David Cohen with Compass and David Greenberg with Marcus & Millichap in February. Cohen said the seller received five offers.
“It just turned out that Finvarb Group is a strong buyer in the market,” said Cohen. “And the company’s performance was one of the factors in the selection as a buyer.”
The hotel was renovated in 2010, and The Palm-Miami is currently paying $ 300,000 in annual rent, or 6 percent of its gross sales, whichever is greater according to the investment offer.
According to the investment offer, Landon had a net operating income of $ 305,901 for the 12 months ended March 2020. Between the first and fifth years of new ownership, The Landon could increase its occupancy rate from 65 percent to 78 percent and increase the average daily rate from $ 105 to $ 128, the offer says. The property is also in need of approximately $ 460,000 in renovation work.
Founded more than 40 years ago, Finvarb Group owns 13 hotels and restaurants, mostly in Miami Beach, but also in Texas, Arizona and other parts of Florida, according to the company’s website. Its holdings include the Courtyard by Marriott South Beach and the Kimpton Hotel Palomar South Beach.
The Finvarb Group had planned to develop a 36-room hotel in the Sunset Harbor neighborhood of Miami Beach, but the zoning changes approved by the city in July no longer allow hotels in the area.
Recently, South Florida had a number of large hotel businesses. Swire Properties sold the 352-key Hotel East, Miami in the Miami Brickell City Center for $ 174 million, and a Mast Capital-led partnership sold the Conrad Miami Hotel on Brickell Avenue for over $ 100 million. Last month, Boston-based Rockpoint Group and Fort Lauderdale-based InSite Group, through a subsidiary, bought B Ocean Resort Fort Lauderdale for $ 117.9 million.
Contact Francisco Alvarado
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