The Gabriel Miami South Beach — Hotel
Type: Real Estate
- Asset Class: Real Estate — Hospitality (132-key Hilton Curio)
- Location: Ocean Drive, Miami Beach
- Structure: Off-market loan acquisition (with Black Pearl Capital & Torchlight)
- All-in Basis: $299K/key (46% below recent Miami comps)
- Status: In progress; path to fee title expected via sponsor default / workout
- Projected: 28.3% levered IRR | 2.62x MOIC (5-year UW)
Executive Summary
After CGI defaulted on a $71M DB loan (orig. basis $116M), a local buyer purchased the note for $53M—backed by $37.1M seller financing. 272/BPC are now under contract to purchase that seller-financed note for $36.7M, positioning us to assume ownership at a steep discount relative to both historical basis and recent sales. The hotel completed a $26.4M renovation (2015–21) and sits in a prime Ocean Drive location.
Thesis
- Exceptional basis vs. comps and replacement cost
- Recently renovated, limited near-term capex
- Institutional management upgrade (Crescent Hotels) to drive rate mix and NOI
- Multiple paths to value: operations, debt workout, optionality (zoning)
Underwriting
- IRR (levered): 28.3% | MOIC: 2.62x | Profit: ~$22.9M
- Refi at Month 24; exit Month 60 at 7.5% cap, underwritten sale $58.0M
- Insurance efficiencies via Crescent (~$370K annual savings modeled)
Market & Comps
- Basis discounts vs. recent South Beach sales and new supply replacement cost; premium ADR growth outlook for Miami market post-COVID rebound.