A joint venture scooped up the Ray Hotel Delray Beach, Curio Collection by Hilton for $57.7 million, marking a resurgence of hospitality investment sales.
Tmgoc Ventures and Certares Management bought the four-story, 141-key hotel at 233 Northeast Second Avenue, according to records and real estate database Vizzda. The property’s sale price according to the deed was $47.8 million, but the trade actually was for $57.7 million, which equates to the loan balance after it was reduced from $85.8 million, records and Vizzda data show.
The price is about $409,000 per key. The buyers assumed the property’s loan, which is from lender AMF Levered II.
Delray Beach-based Menin Development completed the hotel in 2021 on a 1.1-acre lot, according to records.
That year, Menin, led by CEO Craig Menin, transferred management of the entity that owns Ray Hotel to Randal Perkins. Perkins signed off as the seller in the deal to Tmgoc and Certares.
Tmgoc, based in Boca Raton and Charleston, South Carolina, is a hospitality and multifamily private equity firm founded in 2019, according to its website. Led by co-founders Sunju Patel and Glenn Alba, Tmgoc has a portfolio of about $1 billion in existing and planned projects.
New York-based Certares is a private equity investment firm with $6.8 billion of assets under management focused on hospitality, tourism, business and consumer services, its website shows. It’s led by founder Greg O’Hara.
Menin first took out a $67 million loan from Uniondale, New York-based Acres Capital, boosting it to $85.8 million in 2021, records show. Acres Capital transferred the loan to lender AMF Levered II in December. Acres and AMF seem to be related. Jaclyn Jesberger, chief legal officer at Acres Capital, signed records on behalf of AMF.
It’s unclear if the loan was reduced to $57.7 million because the borrower paid down the balance or due to debt forgiveness.
South Florida hotel investment sales have picked up this year, despite elevated interest rates and higher operating expenses, including skyrocketing insurance.
Last month, Habitus SPV Miami Airport BB1 bought the six-story, 110-key hotel at 5125 Northwest 36th Street in Miami Springs, near Miami International Airport, for $16.2 million. Also, Indianapolis-based MHG Hotels bought the four-story, 94-key hotel at 1455 West Yamato Road in Boca Raton for $15.5 million.
In May, Varde Partners sold the two-story, 51-unit Kayak-branded hotel at 2216 Park Avenue in Miami Beach to Blue Suede Hospitality Group for $12.8 million. The deal marked a loss for Varde, which had acquired the property less than a month prior for $13.6 million in a deed in lieu of foreclosure.
Also, Blackstone bought the 346-key W Fort Lauderdale at 401 North Fort Lauderdale Beach Boulevard for $97.7 million in June.