A Brazilian hotel-focused private equity group paid an estimated $31.2 million on Friday for the 389-key Sheraton Orlando North Hotel in Maitland, based within the 45-building Maitland Center office park, and recovered almost half of that value by bifurcating the land and building.
Located at 600 N. Lake Destiny Road, northwest of the intersection of Maitland Boulevard and Interstate 4, the 9.58-acre parcel includes the five-story Sheraton hotel built in 1984, with more than 15,000 square feet of meeting space, business center, fitness center, and outdoor pool and hot tub.
The buyer was CL1 Orlando LLC, a North Miami Beach-based entity that traces to Brazilian group Itacare Capital Partners, which has invested in beach resorts in Brazil's northeast. Itacare founder Pedro Miranda has invested in other Florida properties with Sao Paulo-based real estate attorney Joao Woiler, and Brazilian commercial developer Gilberto B. Bomeny.
The $31.2 million figure reflects deed doc stamp taxes paid on the entire property purchase by CL1 Orlando, per a deed recorded Monday in Orange County. That price may not reflect the entire value paid for the hotel, if the buyer took steps to minimize "real property" for taxable purposes, and broadly designate assets within as "personal property" to reduce the required taxes.
Officials with Miranda, Woiler and Bomeny's firms did not respond to calls for comment on Monday.
CL1 Orlando bifurcated the land and hotel into separate transactions on Friday, selling the land for $14.2 million to KCP Orlando North LLC, an affiliate of Aventura-based Kawa Capital Management, an asset management firm led by three Brazilian partners. The hotel owner then signed a 100-year ground lease with Kawa Capital.
Kawa's managing partner Daniel Ades confirmed his firm's role in the deal for GrowthSpotter on Monday, but declined to comment on the hotel ownership group.
The seller was VWI Orlando North LLC, a partnership between Minneapolis-based Varde Partners, Interstate Hotels Corp. and Waramaug Hospitality Asset Management, which previously paid a recorded $11.16 million in May 2013 for the property.
That Varde fund had come to the end of its cycle, prompting the disposition. HFF's Orlando office marketed the property for the seller.
Interstate Hotels will be carried over as property manager by the new ownership, staff said on Monday.