Buyer in $148M Palm Beach deal owns Aman resorts
Since the owner of Aman — the international ultra-luxury hotel-and-resort brand — took possession of a sizable, if aged, hotel property on Palm Beach’s South End last month, the $147.6 million deal has begged the question: What will Russian-born developer Vlad Doronin and his joint-venture investment partner do with the property?
And the answer, as the saying goes, is still out there.
The buyers, who have worked together on developments before, still aren’t talking about their long-term plans for the ocean-to-lake property, which measures about 4½ acres in the 2700 block of South Ocean Boulevard.
The property comprises The Ambassador Hotel & Residences, the beachfront inn and former cooperative building with 97 units that was built in 1947 but expanded in the 1960s; and the lakefront Edgewater House, a 36-unit former co-operative building directly to the west across South Ocean Boulevard.
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As of now, it is business as usual at The Ambassador. That was the thrust of a statement released last month on behalf of the joint venture — Doronin’s OKO Group of Miami and London-based Cain International, a privately held investment firm. The Ambassador will continue to offer one-, two- and three-bedroom suites to guests for short-term stays and longer leases.
The Palm Beach Daily News reported the sale the day after a flurry of documents related to the transaction were filed at the Palm Beach County Courthouse.
As part of the deal, the joint venture took out a loan with a “maximum principal” of $105 million from affiliates of MSD Partners of New York City, courthouse record show.
A representative of the buyers this week declined an interview request and issued a “no comment” about future plans for the properties, referring only to the brief Oct. 20 statement about the hotel continuing operations.
But Doronin “has placed emphasis on Aman’s financial health and operational efficiency, as well as a continued commitment to open in cities and expand resorts,” a company website says.
Aman properties are well known among the private-jet set
Doronin founded OKO Group, owns Aman and is chairman of both companies, according to the website. There are 34 Aman-branded properties worldwide, which are described on OKO Group’s website as “a distinguished collection of resorts, hotels and private residences.”
The properties — often set amid dazzling natural settings — are known among the private-jet set for their privacy, deluxe amenities, Asian-inspired holistic “wellness” programs and world-class spas. Aman takes its name from the Sanskrit word for “peace.”
In August, Cain International and Saudi Arabia’s Public Investment Fund announced they had invested $900 million in Aman to fund what was described as the hotel company’s global expansion, according to published reports. Cain is said to have valued Aman at $3 billion.
Doronin has been involved with Aman since 2014, according to media reports.
The brand generated plenty of media buzz this past August when it opened the much-anticipated Aman New York in the Crown Building at 57th Street and Fifth Avenue. With 83 suites, the super-luxury hotel — where entry-level suites start at $3,700 a night — also offers 22 residences and membership in the private Aman Club.
In May, Doronin released a statement to Travel + Leisure about the New York property: “Following the success of the multi-award-winning Aman Tokyo, our strategy to bring the coveted Aman lifestyle to urban destinations continues apace,” Doronin told the travel magazine.
Aman’s International operations, which are based in Switzerland, include multiple properties in Asia, including the brand’s original resort, the famous Aman hotel in Phuket, Thailand.
Other Aman-branded properties operate in North Africa, Europe and the Caribbean. The latter include the beach resorts Amanyara in Turks & Cacos, which is part of Providenciales’ 18,000-acre nature preserve; and Amanera in Playa Grande on the north coast of the Dominican Republic.
Aman’s U.S. properties include Amangiri on the Colorado Plateau in Utah’s Canyon Point and Amangani in Jackson Hole, Wyoming.
OKO Group plans to open Aman hotel in Miami Beach
Closer to Palm Beach, Doronin has laid plans to open an Aman Miami Beach hotel in 2024, according to OKO Group’s website.
The Miami Beach location is part of an expansion program with still-to-open Aman-branded properties in Beverly Hills, California; La Ribera, Mexico; and Bangkok. In all, existing projects and those in the pipeline would see Aman developments in 22 countries, according to the company.
The joint venture involved in the Palm Beach purchase has embarked on several residential and commercial developments in Fort Lauderdale and Miami. Among them is the new 830 Brickell office tower on Miami’s waterfront.
Before last month’s deal in Palm Beach, The Ambassador and the Edgewater House were co-operative buildings, with almost all of their units controlled by the seller, a family-run company affiliated with developer and real estate investor Richard Schlesinger’s Copperline Partners. With offices in West Palm Beach, Connecticut and New York, Copperline Partners has an extensive real estate portfolio that includes the majority ownership of the landmarked Brazilian Court hotel-condominium in Palm Beach.
But the new owners immediately dissolved the agreements governing the co-operative ownership structure of The Ambassador and Edgewater House, courthouse records show.
That decision, of course, could pave the way for OKO Group and Cain International to take the Palm Beach property in a different direction — at some point.
Stay tuned.
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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email [email protected], call (561) 820-3831 or tweet @PBDN_Hofheinz. Help support our journalism. Subscribe today.
