1 Hotel South Beach sells for $610 million to a real estate investment trustFebruary 23, 2019
The former 1969 Gansevoort hotel, now 1 Hotel South Beach, at 23rd Street and Collins Avenue, was sold for $610 million to Maryland-based Host Hotels, a real estate investment trust.
Starwood Capital Group, a private investment firm, and LeFrak, a real estate company, renovated the hotel after purchasing it in 2012 for $230 million. The hotel that has 429-room reopened as 1 Hotel in 2015.
The $500 million makeover brought a rooftop bar, new pool decks, a gym, and a spa. The hotel gained a LEED Silver certification for sustainability.
“Given the One Hotel’s popularity and prime positioning directly on the ocean, it’s no surprise that the property was a highly sought after trophy asset,” said Jon Chassen, a partner at Miami-based law firm Bilzin Sumberg, who represented the sellers.
Now there are 1 Hotels in Manhattan and Brooklyn, New York, with plans to open in Los Angeles, California. SH Hotels & Resorts, an affiliate of Starwood Capital Group, will remain operating the South Beach site under the same name.
Host Hotels is the owner of 98 hotels spread around the world, such as the YVE Hotel in downtown Miami and the Marriott Miami Biscayne Bay.