Groundbreaking will take place this spring and completion is scheduled for fall 2006. Covin tells GlobeSt.com he acquired the property for $5 million and will invest $15 million to renovate two existing five-story buildings and construct two more in the same style. Together, the buildings will contain 55 fully furnished units, ranging in size from 460 sf to 1,070 sf, on landscaping that includes a pool and garden lounge. Prices will begin at $350,000 and reach to just short of $2 million.

The hotel was built in 1930 and Covin says "was virtually abandoned by the owners. It's the last major unrenovated property in the heart of the South Beach Art Deco area," he says, "and I've had my heart set on buying it for several years." The owners were reluctant to sell, although the neighboring properties have been revitalized to house popular nightclubs and designer boutiques, he says.

Capponi and Tutt will open Rock House Bar & Restaurant on the property, and it will reflect the style of one Tutt operates at Rock House, a hotel he renovated and opened in Harbour Island in the Bahamas. He retired there following the murder of his long-time friend, designer Gianni Versace. Other Tutt clients include Cher and Jack Nicholson.

Covin's firm and Capponi co-developed the Clinique La Prairie Residences at Ten Museum Park, a $75-million, 50-story mixed-use tower on 11th Street and Biscayne Boulevard.