T2 Hospitality Acquires Oceanfront Plunge Beach Resort for $36.6 Million
T2 Hospitality has made a significant move in the South Florida hotel market by acquiring the Plunge Beach Resort, a 163-key oceanfront property in Lauderdale-By-The-Sea, for an impressive $36.6 million. This acquisition highlights the ongoing interest in South Florida’s vibrant hospitality landscape.
Key Details of the Acquisition
- Purchase Price: $36.6 million
- Cost Per Key: $224,540
- Financing: T2 Hospitality secured a loan of $27.5 million from Bank of America.
Property Features
- Location: 4640-4644 El Mar Drive and 4660 North Ocean Drive, Lauderdale-By-The-Sea, FL
- Site Area: 3.3 acres
- Building Details:
- Two two-story buildings completed in 1958
- A five-story building constructed in 1975
- Parking: The property includes a 0.7-acre parking lot under a ground lease.
Background on Plunge Beach Resort
Previously, in 2013, the Florida Development Group, led by Zoran Zelenikovski, purchased the Plunge Beach Resort for $21.6 million. The property was subsequently transferred to an affiliate managed by Oleksandr Naumyk and Liubov Tereshko in 2015 for a nominal price of $100.
About T2 Hospitality
Founded by Mike Patel, T2 Hospitality began as Tarsadia Hotels in the 1970s with the acquisition of motels in Southern California. Over the years, the company has expanded into hotel development, and its portfolio currently includes:
- 13 existing hotels
- 2 hotels under development
- 4 senior housing centers
- 5 additional sites planned for senior housing
- A ground-up office project
- Investments across consumer products and services
Recent Sale Trends in South Florida
T2 Hospitality’s acquisition comes on the heels of a bustling real estate climate in South Florida. Additional noteworthy transactions include:
- Ray Hotel Delray Beach: A joint venture acquired this 141-key property for $57.7 million in September.
- Miami Springs Hotel: A six-story, 110-key hotel sold for $16.2 million in August.
Upcoming Developments
South Florida continues to attract hotel investments, with various projects underway:
- New York-based 42 Hotel Group received site plan approval for a 15-story, 75-key hotel in Fort Lauderdale.
- New Castle Hotels & Resorts plans a nine-story, 172-key hotel in downtown Fort Lauderdale, which received city approval in May.
Conclusion
T2 Hospitality’s acquisition of the Plunge Beach Resort signifies the robust demand for hotel investments in South Florida. As interest in the region grows, both established firms and newcomers continue to explore opportunities, ensuring that this iconic area remains a top destination for travelers.
For more information on recent hospitality investments and development in Florida, check out Commercial Observer and Hotel News Now.