T2 Hospitality pays $37M for 163-key oceanfront hotel in Lauderdale-By-The-Sea

T2 Hospitality bought a 163-key oceanfront hotel in Lauderdale-By-The-Sea for $36.6 million.

The Newport Beach, California-based firm purchased Plunge Beach Resort Hotel from an entity managed by Oleksandr Naumyk and Liubov Tereshko, according to records and real estate database Vizzda. T2 Hospitality borrowed $27.5 million from Bank of America.

The purchase breaks down to $224,540 per key.

Plunge Beach consists of a pair of two-story buildings completed in 1958 at 4640-4644 El Mar Drive, and a five-story building completed in 1975 at 4660 North Ocean Drive. The entire site is 3.3 acres.

A 0.7-acre parking lot that is part of the property is a ground lease, with Christina Cioeta the sublessor, Vizzda records show.

In 2013, Florida Development Group, led by Zoran Zelenikovski, paid $21.6 million for Plunge Beach and transferred the property to Naumyk and Tereshko’s affiliate in 2015 for a nominal $100, according to records.

Led by founder Mike Patel, T2 Hospitality started out as Tarsadia Hotels in the 1970s with the purchase of motels in Southern California, and then expanded into developing hotels, according to its website. The family firm’s portfolio consists of 13 hotels and two hotels under development, four senior housing centers, five sites planned for senior housing, a ground-up office development and investments in consumer products and services.

In January, T2 sold the 216-key Thompson Denver at 1616 Market Street in downtown Denver for an undisclosed price. Also that month, the firm sold the 174-key SpringHill Suites at 1801 South Harbor Boulevard and the 294-key Residence Inn at 640 West Katella Avenue, both in Anaheim, for a combined $303 million.

Lauderdale-By-The-Sea is an oceanfront municipality north of Fort Lauderdale.

South Florida is experiencing a slate of hotel investment sales and development.

In September, a joint venture between Tmgoc Ventures and Certares Management bought the four-story, 141-key Ray Hotel Delray Beach, Curio Collection by Hilton at 233 Northeast Second Avenue in Delray Beach for $57.7 million. Also, an entity managed by Daniel Del Rio of Miami-based Habitus Capital bought the six-story, 110-key hotel at 5125 Northwest 36th Street in Miami Springs, near Miami International Airport, for $16.2 million in August.

New York-based 42 Hotel Group, led by brothers Harsh and Nickul Patel and Beau Williams scored site plan approval this month for a 15-story, 75-key hotel on the northeast corner of Alhambra Street and Birch Road in Fort Lauderdale.

Ridgefield, Connecticut-based New Castle Hotels & Resorts plans a nine-story, 172-key hotel on the northeast corner of Southeast Eighth Avenue and Southeast Second Street in downtown Fort Lauderdale. The city approved the project in May.

Here are South Florida’s biggest hotel sales of 2024