X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIAMI-A joint venture of New York City-based Morgans Hotel Group Co. and an affiliate of Miami Beach-based Hudson Capital have acquired an apartment building on Biscayne Bay in South Beach with plans to turn it into a Mondrian hotel.

Under the terms of the 50/50 joint venture, the apartment building and land was acquired for $110 million. The joint venture plans to spend $60 million in renovations. The venture will require an initial investment of $15 million from each partner. The project will receive $124 million to be provided by Eurohypo AG, New York branch, at a rate of Libor plus 300 basis points.

The 16-story property will be renovated and turned into 342 studio, one- and two-bedroom units and four penthouse suites. MHG chief investment officer Marc Gordon tells GlobeSt.com that construction has started on the project, which is expected to be completed by the end of 2007. MHG plans to sell some of the units, although the number that will be made available for sale has yet to be determined, Gordon says.

This will be the fourth Mondrian hotel, which is a brand of MHG. The other hotels are in Los Angeles, Scottsdale and a property under development in Las Vegas. The company also operates the Delano and Shore Club hotels in South Beach. “With our Miami Mondrian, we are expanding MHG’s presence and the diversity of our brands in a market we know well and where we have had great success with Delano and the Shore Club,” says MHG executive and CEO Ed Scheetz.

The property fronts Biscayne Bay and offers views of the Miami skyline, the Atlantic Ocean and South Beach. Hotel amenities will include a pool, spa, event and meeting space. It will also offer waterfront services including private VIP boat slips. “This transaction is consistent with our strategy of expanding our brands in major business and leisure travel markets by entering into long-term partnerships to develop and manage our brands,” Scheetz says.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.