Sagar Desai’s Activate Hospitality paid $2.8 million to buy out developer Michael Stern’s interest in 33 commercial units at the Casablanca condo-hotel, pushing the hospitality firm closer to acquiring the oceanfront North Beach landmark.

The deal, recorded in property records this summer, covers the commercial units at 6345 Collins Ave. that include the building’s restaurant space, The Real Deal reported Tuesday, Aug. 25. Stern, founder and CEO of JDS Development Group, signed the deeds on behalf of the selling entity, a joint venture he shared with Activate. That venture paid $1.6 million for the same units roughly a year earlier.

Desai confirmed the buyout to The Real Deal but declined to comment further. Stern’s exact ownership stake in the venture was not disclosed.

LLCs tied to Activate Hospitality now control nearly 150 of the Casablanca’s about 350 residential and commercial units. The same LLC that bought out Stern also closed on another dozen units this summer, property records show.

Separately, one of the Activate entities paid $3 million for a synagogue’s commercial space in the complex. Keter Abraham of Chabad Inc., led by Sonny Kahn, Bruce Menin, Rabbi Shlomo Dachoc, Russell Galbut and Dayami Aguiar, sold the unit. Kahn, Menin and Galbut also lead Crescent Heights, and Galbut is one of Miami Beach’s most well-known developers.

Previous buyout attempts

The Casablanca is a 10-story building constructed in 1948 and designed by architect Roy France. It is recognizable by its valet entrance, where statues of four men partially wrapped in white towels hold up the overhang. Many units are short-term rentals.

Condo board president Alex Stueben, who personally owns 15 units at the property, said the ongoing buyout “benefits all owners.” He declined to disclose the combined purchase price.

The building has been the target of previous acquisition attempts. In 2023, the Meruelo family backed out of a $200 million purchase despite having more than 95% of owners’ support. That deal was contingent on the Meruelos selling the Deauville Beach Resort at 6701 Collins Ave. to developer Stephen Ross, but a referendum tied to the Deauville’s upzoning failed, collapsing the Ross deal.

Stern’s Miami Beach exit

The Casablanca transaction marks Stern’s second departure from a Miami Beach property in the past year. He previously transferred ownership of 1250 West Ave. to developer David Martin in 2025 after securing an upzoning for that bayfront site.

Stern also faces litigation from former partner Gianluca Vacchi, who first sued him in December 2025 over the Casablanca buyout. That case was temporarily stayed in January but remains active.

Stueben said the buyout is in progress but declined to give a timeline for completion.

The major transaction, ownership and building-history claims are supported. I made three substantive corrections: Stephen Ross’ first name, Alex Stueben’s spelling and the status of the Vacchi litigation