Miami Beach Hotel on Ocean Drive Acquired by Nakash and Strategic Partner
July 7, 2023
New York-based Nakash family, renowned owners of Jordache Jeans, along with their strategic partner, have successfully purchased a hotel on Ocean Drive, expanding their impressive holdings in Miami Beach. The Beacon South Beach Hotel acquisition at 720 Ocean Drive marks another milestone for the Nakash family’s growing presence in the hospitality sector.
South Beach Properties II, led by investor Michael Palmer, sold the five-story, 80-room hotel building to a company managed by Salem Mounayyer of Nakash Holdings, who confirmed that Nakash partnered with VE Group for the acquisition. Shani Ben-Hanania and Samuel Heskiel of Beachfront Realty brokered the off-market sale.
The Beacon South Beach Hotel, an iconic Art Deco property, sits on a 0.2-acre lot overlooking Lummus Park and the ocean. Built in 1937 and expanded in 1948, the hotel features a ground-floor restaurant called The Place Restaurant & Bar. The Nakash family intends to keep the hotel operational while upgrading to enhance the guest experience.
With this recent acquisition, the Nakash family owns at least six hotels on Ocean Drive, including Hotel Breakwater, Hotel Edison, Hotel Victor, Hotel Ocean, and the commercial space at The Strand. They are also the proud owners of The Villa Casa Casuarina, famously known as the Versace Mansion, which has been transformed into a luxurious hotel. Furthermore, the Nakashes acquired the hotel components of The Setai, along with its two restaurants, for nearly $90 million in 2014.
Estimates suggest that the Nakash family currently possesses approximately 500 hotel rooms in Miami Beach, highlighting their commitment to expanding their business there. Despite recent challenges faced by Ocean Drive, such as concerns over crime and crowd control during Spring Break, Mounayyer expressed their dedication to further growth.
The Beacon South Beach Hotel’s distinctive facade has appeared in Hollywood productions, situated next to the building famous for the iconic chainsaw scene in the movie “Scarface,” now leased to CVS. Ben-Hanania of Beachfront Realty, recognizing the Beacon Hotel as an iconic property, facilitated the sale after reaching out to the seller a year ago. The hotel had previously traded hands in 1997 for $4.4 million.
While average daily rates have experienced a decline compared to the previous year, Heskiel noted that ADRs remain higher on Ocean Drive compared to other areas of Miami Beach, indicating the enduring appeal of the location.
Notably, companies led by the Nakash brothers filed a lawsuit against the city of Miami Beach in 2021 over the closure of Ocean Drive during the pandemic, a legal matter currently ongoing.
