A boutique hotel in Miami Beach’s South of Fifth neighborhood hit the market for $18.5 million, or $740,000 per key.
The Blanc Kara Hotel at 205 Collins Avenue is in an area where new hotel development is restricted. A buyer could continue running the 24-suite adult-only property as the Blanc Kara or redevelop the site into a luxury condominium building, said listing broker Eddy Martinez of One Sotheby’s International Realty. Martinez and his partner Roland Ortiz of the Worldwide Group have the listing.
Property records show a company managed by Belgian investor Annette Schiffler owns the hotel. Schiffler acquired the three-story Art Deco property in 2010 for $2.6 million. It was built in 1923 and has been renovated and restored. Schiffler opened the Blanc Kara about a decade ago, said general manager Cynthia Legrand.
The hotel was previously a condominium building, which is why the rooms all have small kitchens, Martinez said. It includes a 65-seat restaurant and a liquor license. Belgian architect Delacroix Friant designed the hotel.
Occupancy is typically above 90 percent, and the property’s average daily rate is about $250, which is higher than the county-wide average, Martinez said. A buyer could keep the staff in place, most of whom have worked there for a decade.
A developer could build about 17 units — based on the floor area ratio of 2.75 — and sell them for about $2,200 per square foot, according to Martinez. Nearby developments include Ocean Park South Beach, a four-story, nine-unit luxury condominium at 304-312 Ocean Drive that was completed earlier this year.
Luxury residential towers dot the skyline South of Fifth, where high-end restaurants like Joe’s Stone Crab, Estiatorio Milos by Costas Spiliadis, Carbone and Catch are located. Developer Russell Galbut and his wife Ronalee live in a low-rise luxury condominium Galbut developed on First Street.
Recent hotel sales in Miami Beach include Kolter Hospitality and BH Group’s $24 million purchase of the 84-room Crystal Beach Suites in North Beach. Martinez also pointed to the $30.5 million sale of the Meridian Hotel at 418-420 Meridian Avenue and $39.3 million sale of the Lord Balfour at 350 and 344 Ocean Drive last year, though the latter was a distressed deal.