1621-3 Royale Group Jose Fernandez, a Miami Beach real estate investor, said a hotel operator
might be interested in purchasing all five hotels. Operating all the hotels
through one owner would provide some savings through bulk buying and other
efficiencies, he said.
New West declined to disclose what is the minimum bid it would accept on
any of these hotels. But several recent sales might set a benchmark for the
upcoming auction.
The Pelican Hotel at 826 Ocean Dr. sold last December for $1.35 million,
or about $96 per square foot. The 48-room hotel isn't renovated. The Andrew at
1412 Ocean Dr., which also hasn't been refurbished, sold earlier this month
for $850,000, or about $100 per square foot.
Gross, who handled these two sales, said a renovated hotel could sell
anywhere between $150 to $200 per square foot.
The Edison and Breakwater hotels are on the market for $9.5 million. The
sale would include a lot with a pool between the two hotels.
New West, which is requiring a 30 percent down payment, would finance the
remainder of the sale price. There is a discount on all-cash deals.
• "The lender is better off selling the properties and taking back a
mortgage," said Owen Blicksilver, a spokesman for New West. "The goal is to
sell off the assets. "
Also on the block is a Deco-style commercial building, known as the
Flambeau, at 1126 Ocean Dr., and a parking lot on the northeast corner of 12th
Street and Collins Avenue. The parking lot was the site of the Senator Hotel,
which was torn down in 1988.
The sale will be a sealed-bid auction, conducted by Sheldon Good & Co. of
Chicago. The deadline for submitting bids is 5 p.m. March 12.
The winning bids will be announced some two weeks after the March 12
deadline. The Resolution Trust Corp., the federal agency overseeing the sale
of failed thrift assets, must approve the bids.
KEYWORDS: MB
• TAG: 9204030408
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mh EX-HOTELIER GETS 24-YEAR SENTENCE 08/31/1991
THE MIAMI HERALD
Copyright (c) 1991, The Miami Herald
DATE: Saturday, August 31, 1991 EDITION: FINAL
SECTION: BUSINESS PAGE: 1G LENGTH: 44 lines
SOURCE/CREDIT LINE: JOSEPH A. SLOBODZIAN Knight-Ridder News Services
DATELINE: PHILADELPHIA
EX-HOTELIER GETS 24-YEAR SENTENCE
Leonard A. Pelullo, the former owner of six Art Deco hotels in Miami
Beach, was sentenced Friday to 24 years' imprisonment and fined $4.4 million
by a federal judge.
Pelullo was convicted of looting the country's largest savings and loan
and one of his own companies of $2.2 million. U.S. District Judge Robert F.
Kelly said the scheme, which involved Pelullo's Miami Beach development
company, the Royale Group Ltd., "represented a breakthrough in the field of
crime."
Pelullo, 41, a burly, dark-haired man dressed in a fashionable olive
suit, said nothing to the judge and seemed stunned by the sentence. He