Gianni Versace’s Mansion Sold: Why Only $41.5 Million?

Gianni Versace’s South Beach mansion was bought by VM South Beach LLC for a massive $41.5 million. The property is located on the Ocean Drive seafront and the company intends to turn it into a luxurious hotel.

Joe Nakash the chairman of Jordache Enterprises, which is associated with the purchase of the Versace mansion, said that many of the original features will be retained when the property is converted.

Referring to the swimming pool which is inlaid with 24-karat gold tiles and custom-made mosaic floors Nakash said, “We’re going to keep it the way it is.”

Jordache Enterprises are not newcomers to the hotel business. They already own five Miami Beach hotels including the famous Hotel Victor. The company’s representatives outbid Eric Trump, Donald Trump’s son, to secure ownership of the mansion.

Nakash said the company intends to open the hotel as the “Gianni Versace hotel”: “We’d like the public to use it, so we’re going to create a hotel that will be consolidated with the Victor. We’re going to use the name Versace after we receive the OK from the family.”

In the end there were only three bids for the property. The bidding started at nearly half the final price at $25.5 million, rising in increments of $500,000.

Previously, a whopping $125 million was being asked for the Gianni Versace mansion which went down to $100 million and then down again to $75 million some months later. The final price is considered a bargain compared to the original asking price.

Versace himself spent over $33 million just on refurbishing the mansion following his purchase of it in 1992. He lived in the mansion until his death.

It is hoped that the original style and decor of the Gianni Versace mansion will be properly preserved when the hotel is converted by its new owners. After all, they have a lot more money to spend now considering the price they would have paid for the property just a year ago.