Richard Meruelo has
called off his $200 million buyout of an oceanfront condo
building in Miami Beach.
The private investor had been under contract to buy out the
owners of the 350-unit Casablanca on the Ocean Hotel since
last fall. The condo building, erected in 1948, is at 6345
Collins Avenue, just east of 63rd Street in the North Beach
neighborhood.
Ninety-five percent of
unit owners had agreed to the sale, but Meruelo walked away
because of “continued difficulties [and] uncertainty in the
capital/debt markets,” according to a letter, which was
obtained by The Real Deal.
Colliers brokers Gerard Yetming and Ken Krasnow represent
the unit owners and penned the letter. Meruelo could not be
reached for comment.
Had the deal closed, the acquisition would have become one
of the priciest condo buyouts in recent months. Following
the deadly collapse of Champlain Towers South condo
building, developers and investors have stepped up buyouts
of aging condo buildings, which now face mounting bills for
legally mandated repairs.
Down the road on Collins Avenue, David
Martin’s Terra is under contract to buy the oceanfront
Castle Beach Club for $500 million. Last year, 13th Floor
Investments bought the All Seasons property, which also
faces the ocean on Collins Avenue. |
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But unlike other
developers, who typically will tear down the existing
building to construct luxury condos, Meruelo planned to
renovate the property and convert it into a hotel.
The investor owns the site of the former Deauville Beach
Resort, a MiMo-style property built in 1957, which served as
the backdrop of The Beatles’ iconic performance on “The Ed
Sullivan Show” in 1964.
Last year, the historic hotel was torn down after a Miami
Beach official deemed the 17-story building structurally
unsafe. A Miami circuit court judge later upheld the order,
despite a public outcry.
Related Companies, led by Stephen Ross, agreed to buy the
site on condition that Miami Beach residents grant a height
increase to the Frank Ghery-designed hotel Ross wanted to
build. Meruelo was said to be planning to use the funds from
the sale to finance the Casablanca acquisition.
Despite Ross’s referendum failing in November, the two
parties appeared to have continued the sale negotiations in
the ensuing months, though likely for a lower price.