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Infinity Sells Ocean Drive Building to Apple Core for $33M | By Katherine Kallergis, The Real Deal

Dec 24th, 2019

New York-based Apple Core Holdings paid $32.5 million for an Ocean Drive building in Miami Beach, The Real Deal has learned.

Steve Klein, David Berg and 1200 Ocean Drive
Steve Klein, David Berg and 1200 Ocean Drive

Infinity Real Estate sold the roughly 19,000-square-foot building at 1200 Ocean Drive, across from the beachfront Lummus Park, said Infinity partner David Berg. The company acquired the property from Goldman Properties in 2016 for $15.25 million.

Apple Core Holdings is led by co-founder and CEO Steve Klein, and co-founders and senior partners Kenneth Greif, Larry Horn and Will Kohane, according to its website.

Aaron Labovitz of Newmark Knight Frank represented the buyer, Core Ocean Drive LLC, as well as the seller in the off-market deal.

The three-story South Beach mixed-use building was previously home to the prominent gay bar and restaurant called The Palace. It was built in 1958 on a 7,322-square-foot lot, and Infinity invested $6 million into restoring and renovating the property after securing approval from the Miami Beach Historic Preservation Board. The building was designed by Miami Modern architect Gilbert Fein.

The renovations involved upgrading the plumbing, electrical and other infrastructure, as well as reconfiguring the ground floor. Renovations were completed in the third quarter of 2018.

The ground-floor retail space totals a little over 5,000 square feet, plus a 1,000-square-foot lobby.

Infinity leased the ground-floor retail space to Xperience Restaurant Group’s Pink Taco, a Mexican concept. Pink Taco is expected to open in an indoor and outdoor space in mid-January, according to a press release.

SobeNY, a New York-based firm that operates luxury and short-term rentals, occupies the second and third floors, which were also renovated by Infinity.

Berg said that Infinity plans to re-invest the proceeds of the sale into a property via a 1031 exchange in Miami Beach, Washington, D.C., Philadelphia or New York.

At least two hotels sold on Ocean Drive this year. In August, the U.S. arm of Henley paid nearly $35 million for the Lord Balfour Hotel at 350 Ocean Drive, which re-opened as a Life House hotel.

A month earlier, Crescent Heights sold the Bentley Hotel at 510 Ocean Drive for $28 million to a company led by hotelier Shadi Shomar.

About Infinity Real Estate, LLC
Infinity Real Estate is a privately-owned developer, owner, and manager of high-quality real estate in primary U.S. markets. The Company’s portfolio includes over 60 individual properties representing over 1 million square feet of retail, office and hospitality space and over 1,800 urban rental apartments. Through its affiliates and portfolio companies, Infinity has managed over 115 properties representing over 20 million square feet. The Company’s principals have led or have directly transacted on over $5 billion of real estate related investments spanning the acquisition or development of individual properties and portfolios, as well as several private corporate deals. Infinity has established a strict investment discipline centered on active management of all its projects. The Company has completed over 30 historically protected redevelopment projects in five US cities. Infinity’s “Green Landmark Initiative” is aimed at modernizing the infrastructure and transforming the spatial programming of historic properties, so that they operate with the highest efficiency and smallest environmental footprint possible, while rehabilitating and preserving precious architectural elements of the historic structures. Infinity pledges 1% of its revenues to environmental preservation and social causes as a member of 1% FOR THE PLANET – the environmental non-profit’s only member real estate company. Infinity Real Estate was founded in 2005 by Steven J. Kassin and is headquartered in New York City.

 

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