May 27, 2024
South Florida Commercial Real Estate Boom Continues with Major Acquisition
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:
- 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.
- 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.
- Financing:
- Amerant Bank provided financing for the acquisition.
- The partnership has chosen not to disclose the loan amount.
- 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.
- 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
