Activate Hospitality Buys Out Michael Stern's Casablanca Stake
Activate Hospitality bought out Michael Stern's stake in Miami Beach's Casablanca oceanfront site, consolidating control of the redevelopment play.
Sagar Desai’s Activate Hospitality has bought out Michael Stern’s remaining interest in the Casablanca, the oceanfront condo hotel at 6345 Collins Ave in Miami Beach, ending JDS Development Group’s pursuit of a site Stern once told a partner could carry a $150 million buyout cost against $210 million to $276 million in land value.
Why it matters
For developers watching Miami Beach’s oceanfront, this is a live read on exit economics for a distressed position. Stern’s JDS Development Group teamed with Italian entrepreneur Gianluca Vacchi in 2024 to pursue a unit-by-unit buyout and redevelopment of the Casablanca, part of a joint venture Stern pitched as a $4 billion pipeline. Vacchi put roughly $2.5 million into the Casablanca piece, then sued Stern in December alleging fraud over how that valuation was presented to him. With Activate Hospitality now holding Stern’s stake instead, control of the site consolidates under a Miami firm run by a former Viceroy Hotels acquisitions head that specializes in buying and repositioning underperforming hotels, rather than a developer still assembling condo owners one unit at a time.
The numbers
Stern told Vacchi the Casablanca land could be valued between $210 million and $276 million and pegged the cost of buying out the condo hotel’s owners at $150 million, according to Vacchi’s fraud lawsuit against Stern. Miami-Dade permitting records show notices of commencement filed at the address in January, May and August of this year, meaning work kept moving at the site while the ownership dispute played out.
What’s next
Activate has not disclosed whether it will continue the same unit-by-unit buyout Stern started or shift to a different repositioning strategy for the site. For developers pricing other South Florida oceanfront redevelopment plays, the deal signals that cash buyers with a distress mandate are willing to step into positions a better-capitalized developer walked away from mid-litigation, at whatever discount that exit required.
On the record
Primary record
- Public recordCounty-recorded filings on the Casablanca site at 6345 Collins Ave show notices of commencement in January, May and August 2026, meaning construction activity continued at the property straight through the ownership change.View the record on propertyshark.com
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