Miami Beach has certainly seen it's share of economic turmoil during the past few years, and on January 28, one of it's stellar hotels, The Gansevoort South, located at 2377 Collins Ave, now in the foreclosure process, is going to be auctioned to the highest bidder. The trendy 334 room hotel, owned by father and son developers William and Michael Achenbaum, opened on South Beach just 2 years ago, and has become a central meeting point for celebrities, as well as Miami Beach's young, hip party people.
The Achenbaums say that the hotel is making money, but the project's weak condominium sales have put the hotel in a poor financial position. A few days ago they issued a statement to the press, claiming that the hotel is "profitable, and capable of covering it's respective debt."
In addition to it's 334 hotel rooms, the Gansevoort has 259 condominium units, 63,000 square feet of shops, restaurants, and salons, and a marvelous rooftop pool. It also has an outstanding mortgage of $314,000,000. To save the hotel and condo operation, the Achenbaums are attempting to buy back an $89,000,000 mezzanine loan that has been declared in default by the lender, Credit Suisse. The Achenbaums are trying to avoid the end of January auction.
The Achenbaums say that the hotel is making money, but the project's weak condominium sales have put the hotel in a poor financial position. A few days ago they issued a statement to the press, claiming that the hotel is "profitable, and capable of covering it's respective debt."
In addition to it's 334 hotel rooms, the Gansevoort has 259 condominium units, 63,000 square feet of shops, restaurants, and salons, and a marvelous rooftop pool. It also has an outstanding mortgage of $314,000,000. To save the hotel and condo operation, the Achenbaums are attempting to buy back an $89,000,000 mezzanine loan that has been declared in default by the lender, Credit Suisse. The Achenbaums are trying to avoid the end of January auction.
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