Russell Galbut’s GFO Investments picked up a hotel development site in South Beach, steps away from the Five Park condo tower the firm is co-developing with Terra.

An affiliate managed by executives of Miami-based GFO paid $5.7 million for the two-story, 12-unit apartment complex at 1030 and 1050 Sixth Street, records show. The city of Miami Beach last year approved plans to redevelop the property into a 65-room hotel with a rooftop pool and restaurant, Gema Ruiz with Cedano Realty Advisors said in an email.

12-unit apartment building can be redeveloped into 65-room hotel

A rendering shows the hotel would be built behind three existing historic buildings completed in 1938.

Ruiz represented GFO and the seller, Fernandez Properties, managed by Jose Fernandez of Miami. In 1988, Fernandez paid $185,000 for the apartment complex, records show.

In February of last year, the Miami Beach Historic Preservation Board approved Fernandez’s plan for a six-story hotel on the site, as well as a 70 percent demolition of one of the buildings that will connect with the new structure. Fernandez intended to name the hotel, The Hohauser, in honor of Henry Hohauser, the late architect who designed the historic buildings.

By Francisco Alvarado for www.therealdeal.com
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