A Miami Beach Condo & Condo-Hotel with a Storied Past and Starry Future
I’ve never really devoted a post entirely to a Miami Beach real estate project, so this is a bit odd but FUN for me. The reason I decided to is because 1 Hotel & Residences South Beach is the last development of its kind in this area. What exactly do I mean by that?
1. It’s an oceanfront condo and condo-hotel in South Beach, where there’s no more land on which to build.
2. None. No more. Zero. Zip. Nada.
Rich History of the Property – Who Knew?
1 Hotel & Residences has had many incarnations over many years. The hotel was established in 1926 as the Roney Palace Beach Resort and became known as Florida’s greatest hotel. Built by N.B.T. Roney of New Jersey, it was designed by Schultze and Weaver, the architects of the second (and current) Waldorf Astoria in New York. The firm also designed such Miami landmarks as the Freedom Tower downtown, the Biltmore Hotel in Coral Gables and in Palm Beach, the fabled Breakers Hotel.
The supremely elegant property had a life span of just over 40 years; it was torn down in 1968. The new Roney Palace, a resort with a condominium component, opened in 1971.
Roney Palace shut down in 2004 when the Chetrit Group bought it for $150M. In 2007, Chetrit sold their interest for $370M to William and Michael Achenbaum, owners of the Gansevoort Hotel in NYC.
The Gansevoort Group converted the property into an outpost of their uber-fab NYC hotel, naming it Gansevoort South Beach. The new project opened in 2008 just before the financial crisis. By December 2009, it was in foreclosure. The leinholder ran it under the Gansevoort name until the property was acquired in February 2012 by Starwood Capital Group, The Lefrak Organization and Invesco. The new owners changed the name to The Perry South Beach Hotel.
The Perry consisted of 334 hotel rooms, 255 condo units and 90,000 square feet of retail space, including a David Barton Gym and an STK restaurant from New York City.
In early 2014, the building will reopen as 1 Hotel & Residences South Beach.
Introducing the NEW 1 Hotel & Residences South Beach
In addition to the name-change, the new owners plan a complete renovation of the 1960s property. It was initially estimated that $100M would be spent to transform the structure into a LEED-certified “green hotel.” Everything is scheduled to be replaced… from the windows on in. My sources tell me that the final tab for the massive makeover will be closer to $200M.
The project will consist of a 417-room hotel and 163 private residences run by SH Group, which is Starwood’s hotel management company. 1 Hotel is being developed by Starwood Capital Group’s highly-acclaimed chairman and CEO, Barry Sternlicht, who is also the former chairman and CEO of Starwood Hotels & Resorts, and creator of the very successful W and St. Regis hotel brands.
The 163 condos will occupy floors 9 through 16. Initial offerings will include 1-, 2-, 3- and 4-bedroom floor plans, which will range from 830 square feet to about 4,000 square feet. The 15th and 16th floors will feature premium penthouse residences with a distinctly different look and feel from other units. Three stunning oceanfront duplex apartments will also be on floors 15 and 16; these are the @ 4,000-square-foot properties.
1 Hotel & Residences South Beach: The Condo-Hotel
With the wild success of Miami Beach condo-hotels in general (W, Canyon Ranch, Fontainebleau, Mondrian…), there could be interest from potential 1 Hotel owners to place their condos into the hotel pool. This makes the purchase even more attractive because Miami is consistently one of the top-performing U.S. hotel markets.
Buyers will be able to place their units in the rental pool if they purchase the 1 Hotel furniture package as well. More details coming soon!
1 Hotel & Residences South Beach: The Amenities
Yes – 1 Hotel will continue to feature its now-famous rooftop pool, along with three other pools. Owners and guests will enjoy 600 linear feet of oceanfront with private beach club amenities. Additionally, the hotel will have a 40,000-square-foot gym and spa, 24-hour, in-residence dining, and STK from NYC will still call 1 Hotel & Residences home – after the restaurant undergoes a major upgrade.
1 Hotel is slated to open in the first half of 2014, and sales should start in the next 30 to 45 days. While prices have NOT been set yet, I have a feeling they will come in around $950 to $1,000 PSF to start.
Given the notable shortage of Miami Beach real estate inventory and the fact that 1 Hotel is nearing completion, I think these units should move VERY quickly.
Read more on 1 Hotel & Residences South Beach.