Activate Hospitality's Strategic Acquisition
Sagar Desai's Activate Hospitality has recently completed a significant transaction, acquiring developer Michael Stern's interest in a collection of units at the renowned Casablanca condo-hotel located in Miami Beach. This move is part of Activate's broader strategy to pursue a comprehensive buyout of the property. The deal represents Stern's second withdrawal from a Miami Beach venture within the last year, following his transfer of ownership of a property at 1250 West Avenue to developer David Martin in 2025. Stern's JDS Development Group had previously negotiated a condo buyout for 1250 West Avenue, successfully closing the transaction after obtaining an upzoning approval for the bayfront site.
In this latest agreement, property records reveal that an affiliate of Activate paid a notable $2.8 million for 33 commercial units at the Casablanca, situated at 6345 Collins Avenue, during the summer months. Stern, acting on behalf of the seller, which was a joint venture including Activate, executed the deeds for the transaction. Notably, this affiliate secured the units, which encompass restaurant space, for $1.6 million just a year prior. The specifics regarding Stern's ownership stake in this deal remain unclear, and he has not responded to requests for further comments.
Challenges and Developments in the Casablanca Property
Desai confirmed to _The Real Deal_ the completion of the buyout of Stern's position but refrained from providing additional details. The landscape of the Casablanca property has not been devoid of challenges, as JDS and Stern are currently embroiled in various lawsuits associated with the firm's projects, including the ambitious nearly 800-unit Mercedes-Benz Places and the proposed Dolce & Gabbana-branded supertall structure at 888 Brickell Avenue, both of which are located in Miami's Brickell neighborhood. Reports suggest that Stern is actively engaging with developer Jeffrey Soffer’s Fontainebleau Development as a partner and is in the process of securing over $1 billion in financing for these initiatives, which would help mitigate a foreclosure lawsuit initiated by JDS’ lender concerning the Mercedes-Benz Places project. In addition, Stern finds himself in ongoing litigation with his partner, Gianluca Vacchi, who filed a lawsuit against him in December regarding the Casablanca buyout.
The Casablanca itself, which comprises approximately 350 residential and commercial units, has been the focal point of prior attempted buyouts. This 10-story structure, designed by architect Roy France and constructed in 1948, has become recognized for its valet entrance adorned with statues of four men partially wrapped in white towels, holding up the overhang. Condo board president Alex Steuben, who possesses 15 units within the Casablanca, has indicated that the current buyout is advancing and promises to yield benefits for all owners, although he has chosen not to disclose the total purchase price involved.
Furthermore, the same LLC that acquired the units from Stern has also finalized the purchase of an additional dozen units this summer, as indicated by property records. The Activate Hospitality LLCs now have control over nearly 150 units at the Casablanca. Recent records show that one of these LLCs paid $3 million for a commercial space previously used as a synagogue within the complex. The sale was conducted by Keter Abraham of Chabad Inc., led by Sonny Kahn, Bruce Menin, Rabbi Shlomo Dachoc, Russell Galbut, and Dayami Aguiar. Notably, Kahn, Menin, and Galbut are also key figures behind Crescent Heights, with Galbut being one of the most prominent developers in Miami Beach. The synagogue previously filed a lawsuit against the condo association in 2024, alleging water intrusion that caused damage to the commercial unit, including personal property; however, that case was dismissed earlier this year.
In 2023, the Meruelo family famously withdrew from a $200 million offer to purchase the Casablanca, despite securing over 95 percent owner buy-in. This deal hinged on the family selling the Deauville Beach Resort property at 6701 Collins Avenue to billionaire developer Steve Ross. Unfortunately, a referendum related to the Deauville upzoning failed to pass, resulting in the collapse of the agreement with Ross. Developer David Martin of Terra is now spearheading the redevelopment efforts, which have led to internal disputes among members of the Meruelo family.
As reported by therealdeal.com.
