Bilzin Clears South Beach Hotel Legal Drama

MIAMI—Roughly 30 lawsuits were left pending against the Perry Hotel South Beach—formerly known as the Gansevoort Miami Beach—have been settled. These lawsuits sought damages in excess of $30 million dollars.  

“At the time of acquisition, roughly 30 lawsuits encumbered the property, including a suit by the condominium association that had been pending for six years, several construction defect claims and numerous rescission suits by individual unit owners,” Bilzin Sumberg partner Mitchell E. Widom, who led the litigation, tells GlobeSt.com. “These lawsuits threatened to delay and even derail the 1 Hotel & Residences project. In just over a year, our team resolved nearly all of the litigation. The settlements cleared the way for the $100 million redesign and renovation to begin.”

Renovations will include a new pool, upgraded windows and a complete overhaul of the common areas, including pool decks, garage, private beach, and driveways. The building will also apply for LEED certification upon completion. The new hotel is slated to open in the first quarter of 2014, rebranded as the new eco-luxury 1 Hotel & Residences South Beach. Barry Sternlicht, CEO of Starwood Capital Group and founder of Starwood Hotels, created the concept.

The property spans almost 2 million square feet of building including hotel, condominium, retail, parking garage and related uses. It will consist of 417 hotel rooms, 163 condo units, 90,000 square feet of retail space, four ocean view swimming pools, and multiple indoor and outdoor food and beverage venues.

The property also includes a 26,000-square-foot rooftop pool and lounge with sweeping ocean views, a 32,000-square-foot elevated pool plaza and restaurant, a 40,000-square-foot spa and fitness center, and a 48,000-square-foot private beach. The property occupies the entire block between 23rd and 24th Streets on Collins Avenue with more than 600 feet of beachfront.