Playboy is making another move into South Florida, with plans to transform the Freehand Miami Beach into a private members-only club following a proposed $12.5 million acquisition.
The Los Angeles-based company entered into a purchase agreement on November 2 through its affiliate, Playboy MB JV LLC. The property, located at 2701, 2727 and 2731 Indian Creek Drive, along with 233 27th Street and 230 28th Street, is currently operating as the Freehand Miami.
According to the company’s latest quarterly filing with the U.S. Securities and Exchange Commission, the deal is expected to close by December 15. Playboy has already put down a $1.25 million deposit, with the remaining balance due at closing.
The planned club will give the brand a physical hospitality presence in Miami Beach, adding another dimension to its lifestyle business. The company has also signed a preliminary agreement with two outside partners who are expected to help develop and operate the property, with the proposed venture involving investment from those partners.
Playboy expects to contribute approximately $5 million from its own balance sheet toward the acquisition, with plans to recover that investment through future membership sales. Details about membership costs, the club’s opening timeline and its planned amenities have not yet been announced.
The property has a history of its own. The Freehand Miami occupies a collection of buildings dating back to the 1920s and 1930s and has 89 rooms. Its relaxed hotel setting, courtyard and pool have made it a familiar stop for visitors looking for something different from the traditional South Beach hotel experience.
It is also home to Broken Shaker, the cocktail bar that helped establish the property as a destination beyond overnight stays. The bar’s future is now uncertain as the ownership change approaches. Miami New Times reported that the sale agreement requires the existing bar arrangement to be terminated by the time the transaction closes, leaving questions about what will happen to the longtime Miami Beach spot.
The planned acquisition also comes as Playboy prepares to shift its headquarters from Los Angeles to Miami Beach. The company previously announced plans to move into the Class X office building at 1691 Michigan Avenue, where it has secured a lease for the entire 25,865-square-foot penthouse.
Founded as a magazine brand, Playboy has expanded over the years into licensing, consumer products and hospitality. The Miami Beach club is expected to become part of its broader strategy to build experiences around the brand.
For now, the Freehand remains a hotel, and the proposed transaction still needs to reach closing. If completed as planned, the deal will give Playboy a new foothold in Miami Beach while setting the stage for a significant change at one of the area’s established hospitality properties.
