The luxurious SLS Hotel South Beach has traded hands for $125 million, or $892,857 per room, The Real Deal has learned.
GoldenPeak Capital Real Estate, an international real estate management company based in Guernsey, was the buyer, according to Miami-Dade County records and corporate records.
Los Angeles-based Sam Nazarian co-owned the 140-room, 13-story hotel with CIM Group. The redeveloped upscale property, at 1701 Collins Avenue, features two restaurants, the Bazaar by José Andrés and Katsuya by Starck, as well as lounges Hyde Beach, the Terrace and Bar Centro. Owners spent more than $80 million on the redevelopment, completed in 2012.
The South Beach SLS integrates the original 1939 Art Deco building with an adjacent building composed of ten villas, the Hyde Beach lounge and six bungalows.
Nazarian’s sbe Hotel Group, which also operates the Raleigh Miami Beach, sold the 1.3-acre SLS Hotel South Beach site to 1701 Miami Owner, an affiliate of the buyer.
“As the SLS brand continues to grow, we found a great owner in GoldenPeaks Capital Real Estate, which shares our vision for this world-class property,” Nazarian, chairman and CEO of sbe, said in a statement.
GoldenPeak’s Daniel Tain is listed on the buyer’s corporate records. Tain, a GoldenPeak board member, is co-founder and director of the Dubai and Guernsey-based Amiri Group and more than 20 international companies. Tain’s businesses operate throughout the Middle East, Africa and Asia.
As part of the sale, sbe will continue to operate the hotel through 2030, according to a press release.
In May, sbe also sold the SLS Beverly Hills hotel for $195 million to Torrance multilevel marketing and hotel firm Sunrider International, the Los Angeles Times reported.
Hotels along Collins Avenue in South Beach have been drawing investor interest at record prices.
The sale of the Collins Avenue property follows that of the James Royal Palm, now called the Royal Palm, at 1545 Collins Avenue. Chesapeake Lodging Trust, a real estate investment trust focused on high-end hotels, paid $278 million for the 393-room hotel, or more than $707,000 per room, in February. Near the SLS, the Shore Club was purchased by HFZ Capital for $175.3 million in December 2013. HFZ has plans to convert the 309-room hotel at 1901 Collins Avenue into 100 rooms and 75 condo units.