Grove Hotel Partners LLC Acquires Leasehold Interest in Grove Isle Resort & Spa
Grove Isle Partners LLC is pleased to announce leasehold interest in the Grove Isle Resort & Spa located on Grove Isle in Miami, Florida. The leasehold has approximately 48 years remaining on the term and provides for a sharing in value with the lessee at expiration. The leased property includes: the four-diamond hotel featuring 49 elegant oversized guestrooms (each with private terraces and views of Biscayne Bay), 8,000 square feet of meeting space, the full-service SpaTerre, a 12 championship-court tennis center, and a Club component with on-and-off island memberships. The hotel is also home to Baleen Miami, one of the top rated restaurants in Miami.
John V. Cullen IV and Ira Mondry are the acting co-managers of Grove Hotel Partners LLC. Cullen's management company, Grand Heritage Hotel Management, has signed a long-term management contract to reposition the hotel. Ira Mondry, the lead investor in Grove Isle Partners LLC, comments, "We think Grove Isle is a unique property in that it is 20 minutes from the Miami International Airport, yet it feels like you're on a private Caribbean island. Once we were able to partner with the right hotel manager for this asset in Grand Heritage we became confident that Grove Isle's potential could be realized." Mr. Mondry also emphasizes, "The reality is there are many groups that looked at this asset and simply could not figure out how to unlock its potential and many others who saw the potential but could not get the structure needed to succeed. We were fortunate that our group saw a little something that others did not and had the financial wherewithal to close the deal".
As to committing to an asset at this point in the cycle, Mr. Martin points out, "Although the lack of debt available in the market required the partnership to carefully structure this acquisition and commit a large cash position relative to the total investment, I think the current point in the cycle actually helped us. Many investors are paralyzed by the current news headlines and are either out of this sector all together or are taking a wait-and-see approach. This allows some very attractive opportunities to slip through the cracks. We think Grove Isle is one of these."
Mr. Cullen adds, "My first hotel acquisitions were in the early 1990's. History has taught me not to let opportunities pass when there are tangible asset level opportunities. In the long run, the risks of 'holding out' on good opportunities, as opposed to getting into the operations and starting the process of rejuvenating the staff and rehabilitating the bottom line, are just not worth it."
Brian Patrick Martin
CFO/MD Grand Heritage