Sagar Desai’s Activate Hospitality bought out developer Michael Stern’s interest in a group of units at the oceanfront Casablanca condo-hotel in Miami Beach, as Activate continues to pursue a buyout of the property.
The deal marks Stern’s second exit from a Miami Beach property over the past year, after transferring ownership of the property at 1250 West Avenue to developer David Martin in 2025. An affiliate of Stern’s JDS Development Group negotiated a condo buyout of 1250 West Avenue, which closed after Stern secured an upzoning for the bayfront property.
In the latest deal, property records show an affiliate of Activate paid $2.8 million for 33 commercial units at Casablanca, at 6345 Collins Avenue, this summer. Stern signed the deeds on behalf of the seller, a joint venture with Activate. The venture paid $1.6 million for the units, which include the restaurant space, a year earlier. It’s unknown what Stern’s stake was in the deal. He did not respond to a request for comment.
Sagar confirmed to The Real Deal that he bought out Stern’s position but declined to comment further.
JDS and Stern have been tied up in lawsuits related to the firm’s projects, including the nearly 800-unit Mercedes-Benz Places and the planned Dolce & Gabbana-branded supertall at 888 Brickell Avenue, both in Miami’s Brickell neighborhood. He is reportedly bringing on developer Jeffrey Soffer’s Fontainebleau Development as a partner and closing more than $1 billion in combined financing for both projects. The loans would help resolve a foreclosure suit brought by JDS’ lender in the Mercedes-Benz Places project. Stern is also in litigation with his partner, Gianluca Vacchi, who first sued him in December over the Casablanca buyout.
The Casablanca, with about 350 residential and commercial units, has been at the center of other attempted buyouts.
The 10-story building was constructed in 1948 and designed by architect Roy France. Many units have been operated as short-term rentals. It’s recognizable by its valet entrance with statues of four men partially wrapped in white towels holding up the overhang.
Condo board president Alex Steuben, who owns 15 units at the Casablanca, said the current buyout is in progress and will be something that “benefits all owners.” He declined to disclose the combined purchase price.
The same LLC that purchased the units from Stern closed on another dozen units this summer, property records show. The Activate Hospitality LLCs control nearly 150 units at the Casablanca.
Records show one of the Activate Hospitality LLCs paid $3 million for a synagogue’s space in the complex this summer. Keter Abraham of Chabad Inc., led by Sonny Kahn, Bruce Menin, Rabbi Shlomo Dachoc, Russell Galbut and Dayami Aguiar, sold the commercial unit. Khan, Menin and Galbut also lead Crescent Heights, and Galbut is one of the most well-known developers in Miami Beach.
The synagogue sued the condo association in 2024 over water intrusion that allegedly caused damage to the commercial unit, including to personal property. That suit was dismissed earlier this year.
In 2023, the Meruelo family backed out of the $200 million purchase of the property, despite having more than 95 percent of owner buy-in. That offer had been contingent on the family selling the Deauville Beach Resort property at 6701 Collins Avenue to billionaire developer Steve Ross. Instead, a referendum tied to the Deauville upzoning failed to pass, and the deal with Ross fell apart. Developer David Martin of Terra is now involved in the redevelopment, which has sparked infighting among members of the Meruelo family.
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