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Miami Gansevoort hotel sold, renamed

 

Miami’s Gansevoort hotel will get a name change and renovations under a new ownership group.

hsampson@MiamiHerald.com

Two years after the debt-saddled Gansevoort Miami Beach went into foreclosure, a new ownership group has emerged with plans for major renovations and a new name or two.

The hotel that hosted reality shows, athletes and rappers is known for now as The Perry South Beach, but no one should get too comfortable with that name. The owners are planning a $100 million renovation of the entire property — including the 334-room hotel, 255-unit condo wing and oft-photographed rooftop pool — and plan to relaunch the hotel with a new and as yet unidentified brand in late 2013.

Two other Gansevoort brand hotels — one in New York, the other in Turks & Caicos — are no longer affiliated with the Miami resort.

Sale of the property at 2377 Collins Ave. to a consortium consisting of Starwood Capital Group, the LeFrak Organization and Invesco Ltd. closed Wednesday. The companies did not disclose the purchase price.

Credit Suisse took over the property in 2010 after an $89 million mezzanine loan became overdue; the mortgage was $314 million at the time. Entities controlled by Credit Suisse sold the property, the new owners said.

Plans call for improvements to the 255 unsold condominium units, which are expected to be put on the market later this year. Also in the works: new local and national stores and restaurants at the beachfront complex. The existing David Barton Gym and three outdoor swimming pools will remain.

“We are looking to further enhance it and reposition it with a new brand to become one of, if not the, top true destination resort in Miami Beach,” said Kevin Colket, vice president of acquisitions for Starwood Capital Group.

The investment firm is not affiliated with Starwood Hotels & Resorts, whose portfolio includes the nearby W South Beach. Starwood Capital Group chairman and CEO Barry Sternlicht founded the hotel company and served as chairman and CEO for 10 years.

“This is an incredibly exciting opportunity to create a premier luxury hotel and residences along one of the world’s most beautiful and popular beaches at a time when global interest in the Miami marketplace is close to surpassing its all-time high,” Sternlicht said in a statement.

The three firms have plenty of local experience: They were also involved in ST Residential, which acquired loans and assets that had been owned by the failed Chicago-based Corus Bank. That included more than 2,000 condominium units in Miami-Dade, where sales have picked up enough to spur more investment interest from the groups, they said in a statement.

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