Elliott Investment Management has recently acquired the Gates Hotel South Beach for a total of $52.5 million. The 230-room hotel, located at 2360 Collins Ave., was sold by Rockpoint Group and financed by Deutsche Bank with a mortgage of $82.5 million.
According to the S. Florida Business Journal, it is not uncommon for hotel acquisitions to include additional compensation beyond the deeded price in order to account for non-real estate assets such as branding and business operations.
The property spans over 141,514 square feet on a 1.3-acre lot just one block away from the oceanfront. In 2018, major renovations were completed on the Gates Hotel South Beach which was originally built on top of an old motel dating back to 1954 known as Ankara Motel.This marks its first sale since undergoing this transformation.
Amenities at this newly acquired hotel include a restaurant, bar, pool area and approximately1 ,200 square feet of meeting space.
Connect CRE reports that Elliott Investment Management has purchased The Gates Hotel South Beach for $52 .5 million from Rockpoint Group.The buyer received financing from Deutsche Bank in formof an$82 .5million mortgage .
As per S.Florida Business Journal,the loan amount may seem higher thanthe purchase price,but it is common practicefor hotelsalesas they often involve additional compensationfor non-real estate assets like brandingand business operations .
Locatedat2360CollinsAve,this230-roomhotelis spread across141 ,514squarefeetona1 .3-acrelotjustoneblockawayfromtheocean.In2018,it underwent amajorrenovationafterbeingbuiltonthefoundationoftheclassicAnkaraMotelwhichdatesbackto1954.Thisisitsfirstsalefollowingthistransformation .
The property boasts various amenities including arestaurant,a bar,a pool,andapproximately1200squarefeetofmeetingrooms.
