X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Carl Cronan is editor of Real Estate Florida.)

MIAMI-Locally based Florida East Coast Realty will start construction in June on the 252-room Sonesta Mikado hotel overlooking Biscayne Bay. The 40-story structure, designed in a style reminiscent of classic Japanese buildings, is scheduled to open sometime in the latter half of 2011.

Tibor Hollo, FECR chairman and president, says he is confident that South Florida’s currently depressed tourist market will rebound by the time the hotel is completed. “I’ve been in this business 60 years, through nine downturns,” Hollo tells GlobeSt.com. “This one is stronger than the others, but I believe in the next three years the market will be completely different.”

Flagged by the Sonesta Collection and named for Gilbert and Sullivan’s famous Japanese opera, the Sonesta Mikado will feature hotel rooms with up to 500 square feet, nearly twice as big as the average, along with 900-square-foot suites. Another 119 luxury residences are planned in the development. Other amenities will include a full-service upscale restaurant, a 12th-floor pool deck, 14,000 square feet of banquet and meeting space, and 45,000 square feet of office space.

The Downtown Miami hotel, at 1701 NE Fourth Ave., will feature Asian elegance touches designed to appeal to guests ranging in age from 25 to 55, Hollo says. “I have seen some of these type projects in California,” he adds, “and they are very well received.”

Hollo says FECR is covering 70% of the hotel’s estimated cost, projected to be at least $100 million, with the other 30% being financed at 1.5% over LIBOR. “We never take more than 40% on a project anyway,” he says.

The Sonesta Mikado is the latest commercial project being taken on by Hollo, with others including 2020 Ponce office condominiums in Coral Gables and the Opera Tower residential condo project downtown. He is also pursuing the acquisition of 1101 Brickell Ave., a two-building office development built in the 1970s and ’80s.

The buildings’ current owner, Leviev Boymelgreen, paid $70 million for the property four years ago with plans to redevelop the site for condos, offices and retail. Hollo will not disclose how much he is offering, though it will likely be far less than the previous purchase price.

“We are looking to reposition the buildings,” he says. “The outside looks fairly good, but the inside needs to be upgraded. It will take millions of dollars.”

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

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