1674-4-Bennett M. Lifter {
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mh MARCO POLO HOTEL SOLD 06/28/1994
THE MIAMI HERALD
Copyright (c) 1994, The Miami Herald
DATE: Tuesday, June 28, 1994 EDITION: FINAL
SECTION: BUSINESS PAGE: 1C LENGTH: 78 lines
ILLUSTRATION: photo: MARCO POLO HOTEL, Bennett LIFTER, Russell GALBUT
SOURCE/CREDIT LINE: LARRY BIRGER Business Monday Editor
MEMO: see box at end of text
MARCO POLO HOTEL SOLD
DEVELOPER WILL CREATE CONDO-HOTEL
South Florida's largest converter of condominiums added 508 units to its
growing pool of apartments by buying the Marco Polo Hotel on Sunny Isles
Monday for $11,025, 000.
Since the beginning of 1989, Crescent Heights Cos. has acquired more than
5,000 condo units in 13 high-rise buildings
from South Beach to Sunny Isles.
The Marco Polo, at 19201 Collins Ave., was purchased in an all-cash
deal from veteran hotel owner Bennett Lifter, who built it in 1968-69.
"We're now looking northward into Broward and Palm Beach, " said Russell
Galbut, Crescent Heights managing director. "We believe that our concept will
go over well there, too."
Lifter said the No. 1 reason he sold out was the decline of tourism in
Dade County since the murders of several foreign visitors and the subsequent
bad publicity. That has created a negative image and choked off tourism --
especially the large influx of Europeans that once was a yearly ritual.
Lifter -- who also owns the Waikiki Motel on the Sunny Isles strip, as
well as other property in Dade -- said business is down 40 percent since last
September and he foresaw little chance for a recovery in the near future.
"I'm reducing my overall exposure as a consequence of the decline in
tourism," Lifter said.
A longtime advocate of casino gambling, Lifter said he was still
optimistic that one of several gaming proposals will go before the voters in
November and could have a good chance of passage.
"I feel gambling will help," Lifter said. "But gambling on the passage of
gambling to turn tourism around is a big risk to take."
In a condo hotel, the residents place their apartments in a pool run
by a management company -- in this case Crescent Heights -- to rent out as
hotel rooms when there is sufficient demand during large conventions, events
or holidays such as the Fourth of July or Labor Day.
The Marco Polo and the five other hotels on Miami Beach that Crescent
Heights has taken over contain more than 2,450 rooms. Galbut said from 69
percent to 72 percent of residents turn their apartments over to the
management company when they aren't using them.
These rooms supplement the number of hotel rooms available on Miami Beach
at any one time. Crescent Heights and residents share equally in the proceeds.
Room rates range from $79 to $400 a day, depending on the condo hotel.
Galbut said he and Crescent Heights partner Sonny Kahn are prepared to
spend $3 million to upgrade the Marco Polo before beginning to sell the units
on July 24.
The apartments, ranging from efficiencies to two-bedroom, two-bath units,
0
will be offered at prices from $45,000 to $145,000.
The company has seen good demand on its previous conversions. At the
Ocean Pavilion at 56th Street and Collins Avenue, the 336 apartments went on
the market in March and were all sold within two months, Galbut said.
Crescent Heights wasn't the first to consider a condo conversion at the
Marco Polo. Lifter toyed with the idea two years but decided against the
venture.
"I was faced with the alternative of conversion, but it's a
complicated process and these people know how to do it, plus it meant
suffering more losses with no assurance the hotel business will pick up, "
Lifter said. "So I decided to sell out. "
CONDO KINGS
COMPLETED CONVERSIONS
Besides converting seven Miami Beach apartment buildings into
condominiums, Crescent Heights already has converted the following hotels on
Collins Avenue:
The Castle 526
The Shelborne 290
The Alexander 230
The Decoplage
(formerly 100 Lincoln Road) 635
The Casablanca 268
cutlines
STEPHANIE SINCLAIR / For The Herald
SLOW BUSINESS: Bennett Lifter, who also owns the Waikiki Hotel, says he
sold the Marco Polo because business has slacked off 40 percent.
TAG: 9402140977
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