Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of a three-property hotel portfolio — Bentley’s Boutique Hotel, an 88-room hospitality property, The Virage Hotel, a 54-room hospitality property located in Osprey, FL and On The Beach Casey Key Hotel, an 11-room hospitality property located in Nokomis, FL, according to Ryan Nee, regional manager of the firm’s Fort Lauderdale office. The assets sold for a combined price of $15,400,000.
“Beachside hotels throughout Florida have maintained room rates and occupancy far above others through the pandemic.” said Gabriel Shamay, Senior Associate in Marcus & Millichap’s Ft. Lauderdale office. “Our buyer intends to capitalize on this trend by renovating and repositioning the three properties as a singular upscale beach resort. As evidenced by our successful marketing process, buyers are very confident in the current and future demand for hotels throughout Florida and this is a demand we expect to see long after the pandemic subsides,” He added.
David Greenberg, Gabriel Shamay, and Christopher Passeggiata investment specialists in Marcus & Millichap’s Fort Lauderdale office represented the seller, an individual based out of the United Kingdom, and procured the buyer.
“Our London-based seller intended on listing this hotel with us prior to the pandemic, but first wanted to capture the high-season. When the pandemic broke out in mid-March the seller thought it would be best to hold off on putting the hotel on the market until at least 2021 or 2022,” Said Greenberg.
“After updating our underwriting and developing a very focused marketing strategy on this hotel, we shared with the seller that we were confident there would be buyer demand for this hotel portfolio, since they are located in a destination, leisure, beach-oriented market. The amount of interest and offers we received for this portfolio is a clear indication that even in a pandemic-affected market, people want to travel and vacation. A pandemic may have slowed things down quite a bit in 2020, but people enjoy traveling and getting away. Hotels in leisure beach-oriented markets are expected to recover a lot faster than most other markets,” He added.
“We took this portfolio out to market in a global pandemic knowing hotels were the hardest hit asset class in commercial real estate. We were able to overcome the challenges this presented, and our thorough marketing process allowed us to generate interest from buyers as well as financing/debt sources. With cooperation from all parties, we were able to provide solutions to successfully transact on another portfolio sale in Florida.” said Christopher.
“The buyer has great plans with this purchase, and we look forward to seeing this project come together in the near future.” said Christopher.
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,726 transactions in 2019 with a value of approximately $50 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
