BB&T Real Estate Funding has provided a $40m loan to Optimum Asset Management for the redevelopment of the historic Park Central Hotel in Miami Beach, Florida.
The three-year, floating-rate, senior real estate construction loan will be used to convert three existing buildings – the 1939 Art Deco Park Central Hotel, the Imperial Hotel and Heathcoat Apartments – and a .15-acre development site and turn them into a new 135-room hotel under the Park Central Hotel name.
“The luxury boutique hotel that will retain the historic charm of the original hotel,” according to HFF, which arranged the financing. “When completed, the Park Central Hotel will re-establish Ocean Drive as a luxury boutique hotel and fine-dining destination
The completed project at 620-650 Ocean Drive will feature three new restaurants totaling 8,100 sq ft, a rooftop glass bottom pool, ground-floor pool with ocean views from the deck, 24 suites, 1,380 sq ft of meeting space and unobstructed views of the Atlantic Ocean.
“We believe our renovation of the iconic Park Central Hotel will not only promote the glory of its heyday, but will also bring back a sense of tropical class and elegance to the area,” said Ricardo Tabet, CEO of Optimum Asset Management.
The hotel, to be completed in early 2017, is located directly across from Lummus Park and one block from the fashion district along Collins Avenue.
In the year ending 2014, HFF’s Hotel Group closed more than $3.5bn in hotel transactions across all capital markets, involving more than 100 hotels and resorts. BB&T Real Estate Funding is focused on providing financing to middle market real estate developers and investors for value-add acquisition and redevelopment projects.