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SB and Hazelton Revive Controversial 55-Story Tower Project in Edgewater

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SB Development and Hazelton Capital Group have resubmitted their proposal for a 55-story residential tower in Edgewater, Miami. The Miami Urban Development Review Board will review the updated plans, which have faced opposition from neighboring condo owners concerned about density and impact.

1. Project Overview: SB Development and Hazelton Capital Group propose an 18-story residential tower with 463 units at 419 Northeast 19th Street in Edgewater. The project site is a 0.3-acre lot near Margaret Pace Park.
2. Design and Modifications: Designed by Fogarty Finger, the updated plans include changes to the parking podium, increasing parking spaces to 180 and adding a green wall and water fountain. The height and number of units remain the same.
3. Community Engagement: The developers claim to have worked with neighbors to create a harmonious design. They adjusted the building’s setbacks to improve sightlines for nearby residents.
4. Neighbor Concerns: Despite modifications, some Edgewater residents remain opposed due to increased traffic, safety issues, and insufficient parking. The tower’s proximity to the Cité on the Bay complex has also raised concerns about privacy and structural integrity in a flood-prone area.
5. Density Allocation Dispute: The project’s as-of-right density includes a controversial transfer of 150 units from the Cité condo association. Some Cité residents argue the transfer was improperly approved without a membership vote and continue to challenge it.
6. Zoning and Approvals: The project requires a covenant in lieu of title for final approval of the unit density and floor lot area allocation. Residents have petitioned against this, citing potential negative impacts.
7. Previous Developments: SB and Hazelton bought the site in 2022 for $12 million. Other recent Edgewater projects include Vertical Developments’ 25-story condo-hotel and Camino Capital Management’s Metro 2 mixed-use apartment building.

The revived proposal by SB Development and Hazelton Capital Group for a 55-story tower in Edgewater continues to face significant opposition from local residents. The outcome depends on the upcoming review by Miami zoning officials and the resolution of ongoing community concerns.

Source: Lidia Dinkova, The Real Deal.

Developer Proposes 2,200-Unit Multi-Tower Project in North Miami

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Redwood Dev Co has unveiled plans for a significant mixed-use development in North Miami, featuring nearly 2,200 residential units and substantial commercial space. This ambitious project aims to transform city-owned land, including Claude Pepper Park.

1. Project Overview: Redwood Dev Co proposes a phased development consisting of 2,193 residential units, 121,500 square feet of commercial space, and over 4,100 parking spaces across eight 18-story buildings. Kobi Karp Architecture & Interior Design is responsible for the design.
2. Location and Land: The project is planned for nearly 39 acres of city-owned land, which includes Claude Pepper Park and adjacent areas. The North Miami City Council is set to review the master development site plan.
3. Developer Details: Redwood CP Dev LLC, the applicant, is a partnership between BAS Holdings Investments and Winston Capital Partners. The leaders of these firms are Brian Sidman and David Burstyn, respectively.
4. Community Enhancements: As part of the development, the Joe Celestin community center will be expanded to include new classrooms, a computer lab, kitchen, gym, event terrace, and banquet space. Additionally, the park will be revamped with a new concession building, amphitheater, community pool with splash area, sports fields, basketball and paddle courts, and an exercise trail.
5. Timeline and Process: North Miami issued a request for proposals in August 2022, and Redwood CP Dev submitted their response in November of the same year. The city council will decide on the project’s approval.
6. Context of Other Developments: This proposal is part of a broader trend in South Florida, where numerous large-scale mixed-use projects are being proposed. Many of these developments fall under the Live Local Act, which offers incentives for workforce housing.
7. Other Notable Projects: Other significant proposals include RK Centers’ 1,050-unit complex in Coral Gate and Pablo Castro’s 3,233-unit development in West Little River.

Redwood Dev Co’s proposed multi-tower project represents a significant development for North Miami, promising to bring substantial residential and commercial growth to the area. The project’s success depends on approval from the North Miami City Council, which will review the plan in its upcoming meeting.

Source: Katherine Kallergis, The Real Deal.

Prosper Group Development in South Florida: Brickell and North Bay Village Acquisitions

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Prosper Group, led by Jay Roberts, is set to acquire two prime development sites in South Florida. These acquisitions mark the firm’s entry into the region with plans for luxury condo towers.

Summary of Key Points:

1. Acquisition Details: Prosper Group has inked contracts to buy a site at 1040 South Miami Avenue in Brickell for $40 million and an assemblage at 1681 and 1725 Kennedy Causeway in North Bay Village for $30.5 million.
2. First South Florida Projects: These acquisitions will be Prosper Group’s first developments in South Florida. The company is also co-developing a $600 million condo-hotel in Tampa called Ora Hotel and Residences.
3. Brickell Site Plans: The Brickell property was previously intended for a Virgin Hotel with a co-living component. Prosper plans to partner with a local condo developer to create a condo-hotel with up to 300 residential units. The site could benefit from Miami-Dade County’s rapid transit zone expansion, allowing for higher residential density.
4. North Bay Village Site Plans: In North Bay Village, Prosper plans to develop a luxury condo tower with up to 147 units and a waterfront restaurant. Presales for the units are expected to launch in the first half of next year. This site is adjacent to the planned Continuum Club and the Shuckers site, recently acquired by Ian Bruce Eichner’s firm.
5. Development Boom in North Bay Village: North Bay Village is experiencing a development boom with several high-profile projects. These include Eichner’s planned developments, Mikael Hamaoui’s Pagani-branded condo building, and Related Group and Macklowe Properties’ phased luxury condo development.
6. Additional Information: The Brickell site is currently owned by FX South Miami LLC, and the sellers of the North Bay Village properties are 1681 North Bay Village LLC and 1725 Kennedy Causeway Owner LLC. The acquisitions are expected to close later this year.

Prosper Group’s planned acquisitions in Brickell and North Bay Village mark a significant expansion into the South Florida real estate market. With plans for luxury condo developments and involvement in the ongoing development boom, Prosper is set to become a major player in the region.

Source: Katherine Kallergis, The Real Deal.

Eichner’s Continuum Pays $75M for Shuckers Site in North Bay Village

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Ian Bruce Eichner’s Continuum Company has expanded its footprint in North Bay Village by acquiring the Shuckers Waterfront Bar & Grill property and the adjacent Best Western hotel. This acquisition signifies a major development phase for the company in the area.

Summary of Key Points:

1. Acquisition Details: Continuum Company purchased the Shuckers property and the adjacent Best Western hotel for $75 million. The deal was financed with a $67.5 million loan from Longline Financial.
2. Seller and Previous Plans: The seller, Montreal-based Jesta Group, had planned to redevelop the site into a mixed-use hotel and apartment project, securing approval for these plans in 2023. Jesta Group also owns properties in South Beach, including the Clevelander and Essex hotels.
3. Expansion of Continuum’s Portfolio: This acquisition brings Continuum’s portfolio in North Bay Village to 4.5 acres. The Shuckers restaurant and the hotel, now renamed North Bay Inn Miami, will remain operational until the developer finalizes the next phase of the project.
4. Future Development Plans: Continuum Company envisions the site potentially becoming a hotel and Continuum-branded condo, featuring a private club, gym, restaurants, and marina. Construction could begin in 2025.
5. Previous and Ongoing Projects: In December, Continuum and Aksoy Holding launched sales for the Continuum Club & Residences, a 32-story, 198-unit building on the north side of North Bay Village. Last year, Continuum paid $35 million for an additional 1.4-acre site in North Bay Village.
6. Other Developments in North Bay Village: Several developers are pursuing significant projects in the area, facilitated by a 2020 zoning code overhaul. Projects include Shoma Group’s 21-story condominium tower, the Ansin family’s mixed-use development, and Related Group and Harry Macklowe’s luxury residential development at Majestic Isle.
7. Stalled Project: One notable project in the area, Pacific & Orient Properties’ planned 21-story, 54-unit building, has stalled, with construction currently on hold.

The acquisition of the Shuckers site by Continuum Company highlights the ongoing development surge in North Bay Village. With multiple high-profile projects in the pipeline, the area is poised for significant growth and transformation.

Source: Katherine Kallergis, The Real Deal.

Gov. Ron DeSantis Signs Law Affecting Power Balance in Condo-Hotels

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Governor Ron DeSantis has signed a law addressing the power distribution between residents and investors in Florida’s condo-hotels. This legislation could significantly impact the management and control of these mixed-use developments.

Summary of Key Points:

1. Purpose of the Law: House Bill 1021 primarily deals with issues of fraud, election meddling, and mismanagement by boards of directors and property managers in condo associations.
2. Controversial Addition: A last-minute addition to the law addresses control in condo-hotels, granting commercial lot owners greater control over the maintenance of common areas and the ability to levy assessments on condo owners.
3. Conflicts in Condo-Hotels: Florida condo-hotels have been sites of disputes between unit owners and commercial lot owners, who typically control common areas and can impose maintenance fees.
4. Impact on the Carillon Case: The new law codifies the power of commercial lot owners in the condo act, potentially affecting cases like Carillon Miami Wellness Resort, where residents have challenged the current control structure.
5. Differing Perspectives: Commercial lot owners argue that they need to control common areas to maintain brand standards. Conversely, unit owners feel this structure strips them of rights and can lead to financial abuses.
6. Retroactivity and Clauses: The law is retroactive but does not reinstate rights nullified before October 1 of this year. This means previous court decisions will not be affected by the new law.
7. Future Legal Implications: The new law is expected to trigger new lawsuits, including potential class action suits, and there may be efforts to amend it in future legislative sessions.
8. Buyer Notices: The law also requires that buyers of condo-hotel units be notified about the governing structure, allowing them to make informed decisions before purchasing a property.

The law signed by DeSantis could significantly shift the power balance in Florida’s condo-hotels, benefiting developers and commercial lot owners at the expense of unit owners’ rights. This change has sparked controversy and may lead to new legal battles and legislative adjustments in the future.

Source: Lidia Dinkova, The Real Deal.

Aby Rosen Under Contract to Sell Lincoln Road Commercial Building for $14M

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Aby Rosen, a well-known real estate investor, has signed a contract to sell his commercial building on Lincoln Road, Miami Beach, for $13.6 million. This sale could address his debt issues related to the partially vacant building.

Aby Rosen is selling his commercial building on Lincoln Road for $13.6 million to Tricera Capital, led by Ben Mandell. Tricera’s partners in this purchase have not been disclosed.

In January, Wilmington Trust sued Rosen’s entity for defaulting on payments for a $17 million mortgage loan, claiming $15.1 million is owed.

The one-story building, built in 1945, is located at 318-334 Lincoln Road and has a 49.7% occupancy rate. Its tenants include Mr. Jones nightclub, Sweet Life Gelato, and South Beach Munchies Latin Cafe.

The $13.6 million sale price represents a 33.7% discount from RFR’s purchase price of $20.5 million in 2019. The sale will not fully cover the $15.1 million debt, and it is unclear how the $1.5 million shortfall will be managed.

Tricera Capital, an investment firm focused on commercial and mixed-use real estate, has acquired approximately 30 properties with a total value of $1 billion.

Rosen faces larger financial problems in New York, including foreclosure on his property at 522 Fifth Avenue over a $224 million loan and another $80 million debt in Gowanus.

Despite his issues, Rosen has development plans in South Florida, including a skyscraper project in downtown Miami featuring a hotel, residential units, and a garage.

The commercial real estate market in South Florida has seen an increase in unpaid debt subject to foreclosure, reaching $226.3 million this year, a 108% increase from the second half of last year.

The sale of Rosen’s building on Lincoln Road could alleviate some of his financial burden, though it does not resolve all his debt problems. Despite his challenges, Rosen continues with his development plans in Miami, reflecting the volatility and opportunities in South Florida’s real estate market.

Source: Lidia Dinkova, The Real Deal.

Shoma Group Proposes 404-Unit Rental Tower in Kendall Amid Live Local Act Surge

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Amid the surge in project proposals under the Live Local Act, Shoma Group has announced plans for a significant development in Kendall. The Coral Gables-based firm, headed by Masoud and Stephanie Shojaee, seeks to construct a 31-story residential tower featuring workforce housing.

Project Overview

• Location: 9525 North Kendall Drive, unincorporated Miami-Dade County.
• Details: 404 residential units, 140,000 square feet of commercial space.
• Workforce Housing: At least 162 units to be priced for workforce housing.

Development Specifics The proposed tower will feature:

• 89 studios
• 121 one-bedroom apartments
• 157 two-bedroom apartments
• 37 three-bedroom units

Shoma Group aims to develop on a 1.9-acre site currently holding three two-story buildings, including a sports bar and offices. The ownership of the site is under an entity led by Jeffrey Fiorentino and Brian Bell.

Live Local Act Impact The Live Local Act, enacted last year, incentivizes developers to build larger projects with the provision of affordable housing. Shoma’s project adheres to these guidelines, which stipulate at least 40% of units must be designated for households earning no more than 120% of the area median income.

Pre-Application Stage Shoma Group has filed for a pre-application meeting with Miami-Dade County staff. This step is preliminary and intended to gather feedback before submitting official proposals.

Shoma Group’s new project in Kendall reflects the growing trend of leveraging the Live Local Act to develop substantial housing projects. As proposals proliferate, Shoma’s 404-unit tower aims to contribute significantly to workforce housing in Miami-Dade County.

Source Lidia Dinkova, The Real Deal

South Florida Commercial Real Estate Boom Continues with Major Acquisition

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In a continuation of their aggressive acquisition strategy, a partnership between three prominent South Florida real estate firms has purchased a significant waterfront mixed-use property in Fort Lauderdale. This strategic acquisition, valued at $48.5 million, signals ongoing growth and redevelopment in the region.

Key Points of the Acquisition:

1. The Property and Acquisition Details:
   • Location: The Quay at 17th Street, 1515 Southeast 17th Street, Fort Lauderdale.
   • Property Size: 7 acres.
   • Components: Shopping center, two-story office building, six-yacht marina.
   • Acquisition Price: $48.5 million.
   • Buyers: Coconut Grove-based Related Group, Aventura-based BH Group, and Boca Raton-based Pebb Enterprises.
   • Seller: Affiliate of Miami-based Mast Capital and Boston-based AEW Capital Management.
   • Brokerage: JLL, led by Danny Finkle and Maurice Habif.
2. Future Development Plans:
   • The partnership plans to redevelop the site with a new mixed-use project.
   • Project Approvals: The city of Fort Lauderdale has approved 361 residential units and 12,000 square feet of retail and restaurants.
   • Details Unveiling: Specific project details to be announced in the coming months.
3. Financing:
   • Amerant Bank provided financing for the acquisition.
   • The partnership has chosen not to disclose the loan amount.
4. Historical Context:
   • The Quay at 17th Street was completed in 1988 and acquired by Mast and AEW in 2019 for $43 million.
   • At the time of the recent sale, the property was 93% leased with tenants like Boatyard, Chipotle, the U.S. Postal Service, Azimut Benetti Yachts, and Sanlorenzo Yachts.
5. Recent Collaborative Ventures:
   • In September, the same firms acquired Ocean Walk in Riviera Beach’s Singer Island for $19.2 million.
   • They also own the Office Depot campus in Boca Raton, purchased for $104 million in April of last year, with plans to redevelop it into a mixed-use project.

The recent acquisition by Related Group, BH Group, and Pebb Enterprises highlights the continued momentum in South Florida’s commercial real estate market. The redevelopment plans for The Quay at 17th Street reflect the region’s dynamic growth and the strategic vision of these firms in shaping the future landscape of Fort Lauderdale.

Source: Francisco Alvarado, The Real Deal

Live Local Act Amendments Set to Boost Workforce Housing in South Florida

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Governor Ron DeSantis has signed amendments to the Live Local Act into law, aiming to address South Florida’s affordable housing crisis. This legislation, particularly significant in light of the pandemic-induced surge in rents and housing prices, introduces new incentives for developers to create more workforce housing units.

• Pinnacle 441 Demand Highlights Housing Crisis
  • A “coming soon” sign for Pinnacle 441, an affordable housing project in Hollywood, drew over 21,000 applications for just 113 units, illustrating the severe shortage of affordable housing in the region.
• Live Local Act Overview
  • The Live Local Act, enacted last year, allocated over $700 million in funding and provided tax and zoning incentives for developers who allocate units for residents earning up to 120 percent of the area median income (AMI).
• Amendments to the Act
  • The recent amendments include property tax exemptions of up to 75 percent for mixed-income projects and up to 100 percent for fully workforce housing projects. Additionally, developers can increase floor area ratios and reduce parking requirements for projects near major transportation hubs.
• Developer Reactions and Plans
  • Developers are analyzing the new amendments to determine their feasibility. Some, like Pinnacle, plan to use the tax incentives and increased density allowances to make market-rate deals work for the “missing middle” income bracket.
• Impact on the Market
  • The amendments could potentially lead to the construction of hundreds or thousands of new workforce housing units, alleviating some of the housing pressures in South Florida. However, the higher cost of land in urban and waterfront areas might limit the effectiveness of these incentives.
• Live Local in Action
  • Developers such as Asi Cymbal are already leveraging the property tax benefits for projects like Laguna Gardens in Miami Gardens, ensuring lower rents for residents. Similar strategies are being considered by developers in other areas like Fort Lauderdale and Wynwood.

The Live Local Act amendments are poised to significantly impact the availability of workforce housing in South Florida. By offering substantial tax incentives and zoning flexibility, the legislation encourages developers to create more affordable units, addressing the acute housing shortage in the region. As these changes take effect, they are expected to provide much-needed relief for many residents struggling to find affordable housing.

Source: Katherine Kallergis, The Real Deal

Aimco Prepares to List Hamilton Apartment Tower in Edgewater

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Aimco, a prominent real estate investment trust (REIT), is gearing up to list its waterfront Hamilton apartment tower in Edgewater, Miami. This move marks the REIT’s second major property to hit the market in Miami this year. The 28-story, 276-unit Hamilton, located at 555 Northeast 34th Street, will be listed for sale this quarter, as revealed in Aimco’s filings to the Securities and Exchange Commission.

Following the listing of a 4.3-acre waterfront site in Miami’s Brickell area in March, Aimco’s plan to sell the Hamilton is part of its strategic initiatives. The Brickell assemblage includes the Brickell Bay Office Tower and the adjacent Yacht Club Apartments, with a combined asking price of $650 million. Aimco aims to close on the sale of both properties by year-end if pricing and terms are acceptable.

The Hamilton, completed in 1984 by Carnival Cruise Line founder Ted Arison, underwent a significant renovation after Aimco purchased it in 2020 for $89.6 million. Despite facing challenges from longtime tenants over lease terminations in 2021, Aimco successfully completed the redevelopment project last year and leased up the tower at rates exceeding underwritten rents.

In addition to the Hamilton and Brickell properties, Aimco may consider offloading other assets in South Florida and Aurora, Colorado, according to its first-quarter earnings release. Aimco’s strategic capital allocation strategy involves maximizing value-add and risk-adjusted returns by potentially monetizing planned projects before construction begins.

Aimco’s diverse portfolio includes plans for a waterfront rental tower in Edgewater and a mixed-use project in Fort Lauderdale’s Flagler Village. The REIT also holds a minority ownership stake in a megaproject development site at 3333 Biscayne Boulevard in Edgewater, which might also be on the market.

As Aimco moves forward with its sales strategy, it emphasizes prudent allocation of net proceeds with a preference for returning capital to stockholders, as stated in its SEC filings.

Source: Lidia Dinkova from therealdeal.com