A Marcus & Millichap team based in Fort Lauderdale closed the $14.2 million sale of a Miami Beach apartment building that is to be turned into a hotel.
Blue Road, which owns boutique hotels in Miami Beach, bought Park Terrace apartments at 355 19th St. from the Milton and Seymour Binkov Family Trusts and lessor Jobrotam Development Corp.
John Binkov, Susan Binkov and Mary Hempfling are the trustees of the family trust, and Diane Eisenberg is the principal of Jobrotam.
Marcus & Millichap first vice president Joseph Thomas of the investments and national multi housing group, group vice president Adam Duncan and associate Brett McMahon represented the buyer and sellers in a deal that closed March 2.
The 21,978-square-foot building is a short walk from the Miami Beach Convention Center, which is undergoing renovation, and half a mile from Lincoln Road.
The 32-unit apartment building sold for $445,937 per unit — a record for a multifamily property in the Collins Park neighborhood.
The lot with a two-story building has an allowance for five-story construction, McMahon said.
Blue Road plans to open a hotel with food and drinks aspect, but specifics of the renovation are yet to be determined, according to a news release.
Park Terrace is a contributing building to the Miami Beach Museum Historic District and the National Register’s Miami Beach Architectural District, according to the city.
The city historic preservation board will review Blue Road’s proposed Park Terrace changes.
The complex structure of the selling parties complicated the deal for the Marcus & Millichap team.
“One of the biggest challenges we faced is, prior to going into the market, getting an agreement in place between the lessor and lessee in terms of both parties … being able to deliver fee-simple real estate,” Duncan said.
Bay Harbor Islands-based Blue Road also owns The Stiles Hotel and the Ocean Reef Suites next door, both on Collins Avenue north of 11th Street.
Park Terrace would be Blue Road’s 13th Miami Beach hotel and sixth within two blocks of the convention center.