Property Play: The private space race is spurring a luxury hotel land grab for Florida oceanfront property

A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox. More than a decade ago, Carlos Rodriguez Sr., executive chairman of Driftwood Capital, a Miami-based real estate and hospitality investment firm, started acquiring properties in Brevard County, Florida. There was not a lot of demand after the space shuttle program was canceled in 2011, and there was very limited supply due to strict environmental regulations. But Rodriguez had a theory about the outer space race. "I saw a lot of bright future, and even though the bankers were saying to me 'no,' and a lot of people were thinking that I was crazy, I said, 'Look, guys, this has the potential for being something big,'" said Rodriguez. He was watching the rise of the private space industry, with companies like SpaceX and Blue Origin. He also saw the influx of defense industry companies that were part of that space economy. First he bought a Hilton hotel from Blackstone and fully renovated it. It quickly proved the potential of the area, which then led him to the International Palms Resort, which had fallen on hard times. "It was the bottom of the bottom, but it had density. …