(Crystal Proenza is associate editor of RealEstateFlorida.)

|

MIAMI BEACH, FL-The Breakwater Edison Hotel, which consists oftwo buildings located at 940 and 960 Ocean Drive, has been sold toNakash Holding LLC and partners, the Gindi and Tawil families, for$24.8 million. Nakash Holding is owned by the Nakash family thatalso owns Jordache Enterprises. Jones Lang LaSalle Hotels arrangedthe deal on behalf of the seller, Barry Mukamal of Rachlin LLP, theappointed bankruptcy trustee of the hotel.

|

The hotel has been closed for several years in a partiallyredeveloped state, says Robert Gellman, principal in the realestate advisory group of Rachlin LLP and a member of Mukamal'strustee team. The redevelopment project ran into financialproblems, including cost overruns and time delays, whichprecipitated a bankruptcy filing in March 2007.

|

According to the Miami Daily Business Review, a newspaperrelated to GlobeSt.com, the buildings were on their way to beconverted into a condo-hotel by Chicago condo converter RobertFalor. The hotel was to be named Nicky O, after fashion model andsocialite Nicky Hilton.

|

"The purchase prices we received was a good recovery to thecreditors in light of the many challenges confronting a sale of thehotel, such as the tight credit markets and the partially renovatedstate of the hotel property," Gellman tells GlobeSt.com.

|

"The Breakwater Edison offered a unique opportunity for a buyerto enter a tight market," Christian Charre, a senior vice presidentof Jones Lang LaSalle Hotels, said in a release. "The purchaserwill have the opportunity to complete the redevelopment and open anew hotel on South Beach."

|

Nakash Holding plans to operate the buildings as one hotel withabout 94 guest rooms, Emzon Shung, executive VP of real estate andaviation with Nakash Holdings and Jordache Enterprises, tellsGlobeSt.com. The Edison Hotel side of the building is projected toreopen in six to eight months, while the Breakwater will take ayear to 18 months, he says.

|

Jordache Enterprises and the Nakash family are invested inworldwide residential and commercial real estate, according to thecompany's website. They own several other South Beach properties,including Hotel Ocean and the Henrosa Hotel.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.