Less than four months after buying a Brickell office tower, Paul Singer’s firm is still beefing up its South Florida portfolio, paying $53 million for a waterfront Miami Beach hotel.
An affiliate of West Palm Beach-based Elliott Investment Management acquired The Gates Hotel South Beach at 2360 Collins Avenue, records show. Deutsche Bank provided the buyer with an $82.5 million loan.
Singer and Jonathan Pollock are Elliott’s co-CEOs. The firm plans on renovating and rebranding the property as The Dean Hotel, a press release states.
The seller, an affiliate of Boston-based Rockpoint, paid $12.8 million for the 1.2-acre site in 2005, and completed the eight-story, 230-room hotel a decade later, records show.
The latest sale equates to $230,435 per room.
The hotel purchase comes on the heels of Elliott’s foray into the Miami office market. In October, the firm and Boca Raton-based Morning Calm Management paid $443 million for 701 Brickell, a 32-story office tower.
Elliott is also backing Tyko Capital, a private equity and credit investment management firm that refinanced a $300 million construction loan for 830 Brickell, a 55-story office skyscraper currently under construction. Tyko provided a new $565 million loan to 830 Brickell developers OKO Group and Cain International.
Singer founded Elliott in 1977, and the hedge fund has roughly $69.7 billion in assets, the firm’s website states.
In recent months, Miami Beach has experienced a flurry of hotel deals. Most prominently, British billionaire brothers Simon and David Reuben bought the W South Beach at 2201 Collins Avenue for more than $400 million. In October, their eponymous firm acquired the 20-story waterfront resort from New York-based firms led by Aby Rosen and David Edelstein.
The same month, Barcelona-based Grupo Hotusa purchased Eurostars Winter Haven, a 71-room Art Deco hotel at 1400 Ocean Drive. Harrisburg, Pennsylvania-based Hersha Hospitality Trust sold the property to Hotusa for $19.7 million.
