Magna Hospitality Group sold a beachfront Fort Lauderdale hotel for $47.1 million, marking a 20 percent increase in value from what it paid for the formerly bankrupt unfinished development eight years ago.
Records show Rockpoint Group acquired the 12-story Hotel Maren Fort Lauderdale Beach, a Curio Collection by Hilton at 525 South Fort Lauderdale Beach Boulevard with a $47.7 million mortgage from Apollo Global Management subsidiary Athene Annuity & Life Company.
At 245,080 square feet with 141 rooms, the price breaks down to $192 per square foot and $334,000 per key.
A bankruptcy court approved Magna Hospitality’s acquisition of the stalled oceanfront hotel development for $39.1 million in 2018, days after the court canceled an auction for lack of qualified bidders other than Magna’s stalking horse bid.
An entity tied to former executives at Turnberry Associates, 550 Seabreeze Development LLC, purchased the site in 2003, records show.
The entity sought EB-5 investment, a federal program in which foreign investors can invest $500,000 into certain projects in exchange for U.S. residency, to finance the project. It raised at least $30 million from 60 EB-5 investors through December 2015.
In January 2018, Bancorp Bank filed a foreclosure suit against 550 Seabreeze Development LLC and Jaw of 515 Seabreeze LLC, alleging default on a mortgage with an unpaid principal balance of $36.9 million. The development group subsequently filed for bankruptcy to establish procedures for the sale and auction of the property.
Founded in 1998, Rhode Island-based Magna Hospitality oversees 19,300 rooms across multiple hotels in more than a dozen states and reported $1.4 billion in revenue under management, according to its website.
Fort Lauderdale Beach Boulevard is lined with a slew of hotels that sit across the road from the beach, including ultra-luxury brands like The Ritz-Carlton Fort Lauderdale and Fort Partners’ Four Seasons Hotel and Residences Fort Lauderdale.
Hotel Maren sits just up the street from Bahia Mar Fort Lauderdale Beach, a DoubleTree by Hilton Hotel, which is undergoing a $2 billion overhaul by billionaire Jorge Pérez’s Related Group; Tate Capital, led by Jimmy and Kenny Tate; and Rok Acquisitions, led by Sergio Rok, that will include the St. Regis Resort and Residences.
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