DAYTONA BEACH, Fla., May 12, 2022 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Tropical Winds Oceanfront Hotel, a 94-room hospitality property located in Daytona Beach, Florida. The eight-story property traded for $14 million, $500,000 above list price.
A real estate investor from North Carolina acquired the oceanfront hotel from a New York-based family, which has owned the property since shortly after its construction in 1988. Leo Reilly and Robert Hunter, investment specialists in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the long-time owners. The team also procured the out-of-state buyer.
“Through an exhaustive, clandestine marketing process, we were able to generate 15 written offers, including offers from 11 states and one international,” said Reilly. “The diversity and aggressive nature of our competitive offers further evidence of an overdue revitalization of the Daytona Beach hotel market that has been well underway for years in similar blue-collar drive-to leisure markets throughout the Southeast.”
Tropical Winds Oceanfront Hotel is located at 1398 N. Atlantic Ave, with direct frontage of Daytona beach, coined the “world’s most famous beach”. A major upside of the trade includes close proximity to Daytona Beach Airport, restaurants and local attractions, including Ocean Center Daytona Beach, Daytona Beach Main Street Pier, Daytona Lagoon Waterpark and much more.
“This transaction represented the shift in market demand towards leisure-driven oceanfront hotels, a well-documented silver lining of the COVID-19 Pandemic,” said Hunter, first vice president investments. “The price per key of $150,000 per key will help redefine the market value in the Daytona Beach hospitality market. Tropical Winds sold between $30,000 and $70,000 higher per key than recent local comparable sales.”
Property amenities include direct beach access, oceanfront balconies, outdoor and indoor heated swimming pool, outdoor sundeck, and poolside cafe.