Drago has signed an agreement with hotelier Sonder to operate a building in Miami with 27 apartments, located in 250 Collins Avenue, in the touristic neighbourhood of South of Fifth (Sofi) a few meters away from the renowned South Beach.
The company bought this asset in 2017 with an Irish consortium of investors. With this product that adapts to the local regulations and limits the exploitation of accommodation without a licence, the company aims to respond to the growing demand of touristic accommodation in Miami.
The changes introduced in the regulations determine that only those flats with a licence and a registry number can operate in residential areas. This has reduced the offer in Airbnb and other touristic rental platforms, and has hardened the measures in other areas.
The 10-year contract signed with Sonder group will allow Drago to monetise the property. This asset is one of the few properties in the area that has holiday rental licences.
The building has 2,161 square metres and houses 27 apartments with an average of 65 square metres, from which 16 have one bedroom, 8 have two and 3 have three. The property also has a terrace, a deck with a pool and a solarium. In its renovation, Drago has kept its original base and structure in the first two floors, as the asset is protected, and has added a third with a contemporary style.
Sonder was founded in 2012 in San Francisco and operates in 30 cities with more than 2,000 apartments.
Opportunity
For Mayte Medina, Drago’s CEO, this operation marks an “important milestone” for the firm. “Miami is not a typical north American city, its culture, market and climate create special challenges, and Drago has been able to export its European investment and value-add strategy and apply it to the United States obtaining optimal results for our investors and partners”, Medina adds.
Drago operates in Spain and Portugal since 2001 and has closed deals amounting to more than 3,700 million euros. In 2017, it landed in the north American market with the acquisition of its first property in Miami in Park Avenue, followed by Collins Avenue.
https://www.expansion.com/empresas/inmobiliario/2019/03/07/5c8028c722601d2f018b4588.html
