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Versace Mansion Auctioned for $41.5 M


Versace mansion auctioned for $41.5 million

Versace Mansion auctioned off
The former Versace mansion fetched a top bid of $41.5 million from a group that included New York’s Nakash family, which controls Jordache Enterprises, at a court-ordered bankruptcy auction.
Walt Michot / Miami Herald Staff

The former Versace mansion fetched a top bid of $41.5 million at a high-profile auction Tuesday from New York’s Nakash and Gindi families, who own the Hotel Victor next door.

Donald Trump — who deployed his son, Eric Trump, to bid on his behalf at the court-ordered bankruptcy sale — bid as high as $41 million for the iconic South Beach estate, making him the back-up bidder in the unlikely event the top bidders don’t follow through on the all-cash deal.

At a bankruptcy-court hearing set for Wednesday morning, a judge will be asked to approve the sale of the lavish 10-bedroom, 11-bath mansion, known as Casa Casuarina.

Although the Mediterranean-style estate at 1116 Ocean Drive won’t get the Trump name, it could end up with Versace’s moniker again — that is, if the new owners can cut a deal with the family of Italian designer Gianni Versace, who was shot to death on the steps of the property in 1998.

Joe Nakash, chairman of Jordache Enterprises, said at a news conference on the mansion steps after the auction that his group wants to operate a boutique hotel there, using the famed Versace name. The hotel would operate in tandem with the Hotel Victor next door, which recently reopened after a major renovation of the 91-room, Art Deco property.

“If not, we’ll use the former name, or a new name,” said Nakash.

The Hotel Victor owners have been after the Versace mansion for some time. Their VM South Beach LLC acquired the mortgage on the property in December 2011 from a German bank, WestLB. VM South Beach’s principals include the Nakash interests and Gindi Capital, controlled by the Gindi family.

“They’re so thrilled they can now combine these properties to offer top-quality entertainment and hospitality to their customers,” said Ralph Bekkevold, a shareholder at Greenberg Traurig in Miami, who represents the winning bidders.

Weeks before the auction, which was closed to the public and media, VM South Beach LLC put in a stalking-horse bid of $25 million, setting a minimum for others. The bidding Tuesday went in $500,000 increments.

A third bidder who had put up a $3 million deposit to participate in the auction — Palm Beach Polo and Country Club owner Glenn Straub — made a single bid and stopped, leaving the Hotel Victor interests and Trump to duke it out, according to Lamar P. Fisher, of Fisher Auction, which conducted the auction on the site.

Trump, the real-estate kingpin and TV reality-show celebrity, said it was no big deal that he didn’t get the trophy mansion. “We sort of thought it was a $25 million property,” Trump told the Miami Herald afterward in a phone call. “I thought it would be a nice little retreat, but nothing very important.”

Experts say Trump might have used the South Beach oasis to round out his offerings to wealthy South Florida tourists. He owns Mar-a-Lago in Palm Beach, the former estate of Marjorie Merriweather Post, which he turned into a private club and spa. Last year, Trump acquired the Doral Golf Resort out of bankruptcy proceedings and renamed it Trump National Doral. The sprawling Doral resort is in the midst of a $250 million renovation.

Tuesday’s auction drew a sizable crowd of journalists, who staked out the mansion’s front entrance, as well as the occasional curious tourist passing by.



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