Simon Nemni Plans Expansion, Renovation of Carlton Hotel

Adam Horowitz of New York City-based AFC Realty Capital arranged a senior mortgage loan of nearly $8.3 million from Chevy Chase, MD-based CapitalSource Finance LLC to fund the acquisition and renovation. He worked with Chris Kelly, managing director and head of real estate for CapitalSource, and investment officer Scott Lisman, who calls Nemni "a savvy local sponsor with a foothold in the market and experience operating independent hotels in this market."

Nemni, a Paris-born former women's wear manufacturer, recently transformed and expanded the Clinton Hotel, another Art Deco landmark in South Beach. The interiors feature distinctive Parisian decorative references. Plans for the Carlton are similar, Nemni says. "We have approvals to add two four-story additions on either side of the building and add a fourth story to the existing structure. We're adding a restaurant and some commercial retail space."

A decision on the size and number of added rooms has not been reached, Nemni says. "If we add regular-size rooms, there will be between 105 and 108, but we may go to bigger units as suites, which would take the total number of units to 85 or 86. The hotel is continuing to operate," he says, "and we're making light cosmetic enhancements now." They include new linens and upgraded baths, he says and estimates the full expansion and renovation will take about two and a half years.