Friday, December 26, 2014

Jordache buys Setai Hotel on Miami Beach for $90 million

By Rene Rodriguez

The Jordache look, a quaint relic of the 1980s, is coming back in style in a different way.
Nakash Holdings, the investment company controlled by the designer jeans firm Jordache Enterprises, announced Wednesday it has purchased the 120-room Setai Hotel, one of Miami Beach’s most vaunted celebrity haunts, for about $90million.
The Setai is the latest acquisition by Jordache, which bought the Versace Mansion last year for a reported $41.5 million, and also owns five other hotels in the area, including the Breakwater Hotel and the Hotel Victor.
“The Setai is really the crown jewel of Miami Beach,” said Jonathan Bennett, managing director of Nakash Holdings, the real estate division of Jordache. “It is the epitome of luxury in that city. We’ve enjoyed spending time there, and when it came up for sale, we knew it was something that would be a great fit for us. It’s special and unique, and there’s nothing else on the Beach that can compete with it.”
With 85 hotel suites and another 35 condo units, the price averages out to $750,000 per room. That makes it one of the highest per-room sales ever in Miami Beach, said Scott Brush, a Miami-based hotel consultant. The condo units are privately owned, but most can be rented through the hotel program.
“There have been some really high numbers recently — numbers that five years ago would have you committed to an asylum,” Brush said. “Rumors have it that the Delano might be available for $1million a room. We’re also talking about a market, Miami Beach, where the numbers have gone through the roof. You can still pay more in New York City or San Francisco, but for an area that did so poorly for so long, it has really come into its own in the past few years. As occupancy numbers go up, so do the value of the hotels.”
Built originally in 1938 as the Art Deco-styled Dempsey Vanderbilt Hotel, the hotel at 2001 Collins Ave. was renovated in 2004 and augmented by a 40-foot tower that is home to one, two and three-bedroom condos ranging in size from 900 to 3,500 square feet. Conceived partly by Aman Resorts founder Adrian Zecha, the beachfront Asian-inspired grounds include an interior courtyard pool surrounded by pergolas and an expansive outdoor pool garden. In 2013, readers of Conde Nast Traveler voted it the best hotel in Miami Beach and No.2 in Florida.
Past guests have included Hugh Jackman, Jennifer Hudson and Dylan McDermott. Its hotel suites bring some of the highest rates on Miami Beach, with a one-night stay on Jan. 4 starting at $1,360 plus tax; according to the hotel website, it is sold out through Jan. 2. In 2013, a full-floor, 7,100-square-foot condo unit on the building’s 40th floor sold for a record-setting $27 million — just over $3,800 per square foot.
Bennett said the current contract with the management firm that operates the condo portion of the facility expires early next year. He said the decision has not been made whether to renew or go in a different direction.
Jordache’s interest in Miami Beach won’t stop with the Setai, he said.
“We own several other properties there and the chairman of our company [Joe Nakash] has a residence on Fisher Island, so he spends a lot of time there,” Bennett said. “We’re going to continue to seek out these kinds of opportunities and add to our portfolio as they come along.”

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