Starwood Capital to Renovate Miami’s Gansevoort after Purchase

A consortium consisting of affiliates of Starwood Capital Group, the LeFrak Organization and Invesco Ltd. have jointly purchased one of South Beach, Miami's premier luxury mixed-use properties, including a hotel formally known as the Gansevoort.

The property consists of 334 hotel rooms, 255 condo units totaling 294,000 square feet, 90,000 square feet of retail space including a 42,000-square-foot David Barton Gym, three outdoor swimming pools, and multiple indoor and outdoor food and beverage venues.

The property also includes a 26,000-square-foot rooftop pool and lounge with sweeping ocean views, a 32,000-square-foot elevated pool plaza and restaurant, and a 48,000-square-foot private beach.

The property occupies the entire block between 23rd and 24th streets on Collins Avenue, and enjoys more than 600 linear feet of beach frontage. Terms of the transaction were not disclosed. The consortium is planning to invest more than $100 million in an extensive renovation of the overall property while repositioning it as one of the premier hotel and condo destinations in Miami Beach.

The 334-room hotel will be renamed The Perry South Beach until it is re-launched in late 2013 with a new brand after an extensive renovation. The 255 luxury residential condominiums will also be improved and, it is anticipated, be offered for sale later this year.

The condominiums will have access to the full hotel services as well as the project's pools and extensive food, beverage and fitness venues. The repositioning will also include several new local and national stores and restaurants in the retail corridor along Collins Avenue.

Invesco participated in the transaction through its Invesco Mortgage Recovery Fund, a fund co-managed by its Invesco Real Estate, Invesco Fixed Income and WL Ross & Co. LLC investment centers. The property was sold by entities controlled by Credit Suisse, which had acquired it through foreclosure in 2010.