Canadian Investor Acquires Sea Garden Resort and Nearby Lot in Lauderdale By The Sea for $3 million
Arlene Satchell | Sun Sentinel | August 11, 2017 2:14pm
Aug. 10--A Canadian firm has snapped up another small hotel in Lauderdale-By-The-Sea as investor interest in the seaside town's tourism assets continues to run high.
Quebec-based Sea Garden By The Sea Inc., led by Terry Pomerantz, purchased the 17-unit property Sea Garden Resort at 4625 N. Ocean Drive, and an adjacent parcel for about $3 million, said Rick Tobin, owner/broker of Premier Hotel Realty in Pompano Beach.
Tobin represented the seller, Ginomar Inc.
Broward County records filed July 11 list the sale price for the main property as $2.035 million, while the adjacent 4633 N. Ocean Drive parcel with two rooms, sold for $500,000. Furniture, fixtures, equipment and goodwill, pushed the total transaction price to about $3 million, Tobin noted.
Sea Garden Resort features a pool, laundry facilities, free Wi-Fi and a mix of hotel rooms as well as efficiencies with kitchenettes and one-bedroom suite and cottage units. Built in 1958, it last traded for $527,000 in February 1995, Broward property records show.
Last August, another entity with ties to Pomerantz purchased the 35-unit, two-building Blue Strawberry By The Sea hotel at 4220/4208 N. Ocean Drive for $3.6 million.
Tobin was also involved in the Blue Strawberry deal.
Florida corporate records show Pomerantz also has links to the Castle by the Sea Motel at 4520 N. Ocean Drive, which another affiliate purchased for $1.5 million in September 2015.
Tobin, who has been involved in several Lauderdale By The Sea hotel sales in the last decade, said he's constantly fielding calls about properties in the area from potential investors looking to capture a slice of South Florida's strong tourism sector.
"The demand is strong for hotels and multifamily properties in this area, but inventory is low," Tobin said. "Fueling demand is a new influx of visitors from Great Britain, enjoying the new direct flights from London to Fort Lauderdale."
The Broward town of 6,056 permanent residents, which swells to about 10,000 in the winter season, has been revitalizing its beachfront business district and redesigning central public spaces in recent years to better appeal to residents and tourists.
New hotels are also opening up or are in the development pipeline in Lauderdale By The Sea, known for its small-town friendliness and charm, small inns and shoreline diving.
Among the newly-opened properties is the 163-room Plunge Beach Hotel at 4660 El Mar Drive, which began welcoming guests in mid-April.
In the past five to six years, real estate development has been on the rise in the town. Projects include a Ukrainian-led investment group's purchase of six town hotels and inns for more than $60 million with plans to transform them into new tourist accommodations.
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