CBRE Retained to Sell Former Treasure Island Hotel Site in Daytona Beach

CBRE has been retained by ACRES Capital as the exclusive marketing agent to sell a 5.03-acre beachfront development site entitled for 300 hotel keys and 200 condo units in Daytona Beach, Fla.

Austin LaPoten and Natalie Castillo with CBRE Hotels and local multifamily experts Chip Wooten and Jeff Gray, also with CBRE, are marketing the site on behalf of the seller.

The nine-parcel site, which was previously home to Treasure Island Hotel, includes 3.18 acres of beachfront property located 2025 and 2037 S. Atlantic Ave. and 1.34 acres located directly across the street from 2026 to 2041S. Atlantic Ave. There are also two parcels on Armstrong Street totaling 0.51 acres.

The fully-entitled site allows for a large 23-story hotel and branded residence, or hotel and condominium. It features approximately 450 linear feet of beach frontage. Demolition of the site completed in June 2022.

“With no other major hotel projects under development in the area, this site represents a unique hotel/condo redevelopment opportunity in an irreplaceable, high barrier-to-entry beachfront location,” said CBRE’s Austin LaPoten. “Major hotel brands have already expressed strong interest in this project given its location, size, and high-performing hotel fundamentals.”

The site is proximate to retail, dining, and entertainment destinations, including the Daytona International Speedway, Main Street, Daytona Beach Boardwalk and Pier and Ocean Center convention center. It sits six miles from the Daytona Beach International Airport.

CBRE’s Chip Wooten added, “Condominiums that can be rented out frequently continue to bring a premium and are among the fastest properties to sell on the market. Pricing for condos has increased significantly since the pandemic and inventory of unsold condos is at its lowest point in several years.”

According to CBRE Econometric Advisors, occupancy for upper-upscale and luxury hotels in Daytona Beach recovered from pre-pandemic levels to 62.9 percent in 2021, while RevPAR grew from $92.73 in 2019 to $110.50 in 2021, a nearly 20 percent increase. Year-to-date, July 2022 performance has shown continued strength with RevPAR at $141.60.