A long-planned luxury office, retail and residential project in Miami Beach’s Sunset Harbour scored $60 million in construction financing.
Deco Capital Group, led by Bradley Colmer, secured the loan from City National Bank of Florida. The firm has begun foundation work on Eighteen Sunset, the latest iteration of the mixed-use development, Colmer told The Real Deal.
The project, between Purdy Avenue and Bay Road in the 1700 block, officially broke ground in November and is expected to be delivered in late 2023, according to a press release.
Deco Capital’s longtime partner is New York-based RWN Real Estate Partners, part of billionaire Marc Rowan’s family office. Rowan is a billionaire co-founder of Apollo Global Management.
Deco was involved in yearslong litigation with Beach Towing, a Sunset Harbour neighbor, that has been resolved. The developer also faced setbacks with city approvals over the years.
The planned five-story building calls for 40,000 square feet of Class A office space on two floors, a residential penthouse that has a whisper price in the $60 million range, and about 15,000 square feet of ground-floor retail and restaurant space.
The penthouse is expected to include more than 15,000 square feet of interior space, and a rooftop deck with a pool and hot tub, gardens and outdoor dining area. The penthouse buyer would also have a private garage with space for at least six cars.
Douglas Elliman agent Oren Alexander was hired to sell the condo. Sara Wolfe of Koniver Stern is leading retail leasing, and Stephen Rutchik of Colliers International is handling office leasing.
Colmer, founder of Deco Capital, said the project has been on the receiving end of “unbelievable interest” in the office component.
“We’re going to shatter records for per-square-foot lease records if not in all of South Florida, then all of the Southeastern U.S.,” north of $100 per square foot, triple net, Colmer said.
The Yukon, a Class A office building in South Beach, set the current record with leases signed in the $90 per square foot range.
The area’s high-end office market has seen a spike in activity due to the increase of CEOs and other C-suite executives moving to South Florida. Starwood Capital Group CEO Barry Sternlicht, a Miami Beach resident, recently completed the company’s new headquarters building near 1 Hotel & Homes South Beach, a project Starwood co-developed.
Colmer said prospective buyers of the penthouse are also looking at leasing the office space at Eighteen Sunset.
“A lot of interest from folks looking at it is not just from a residential perspective, but from a live-work perspective,” he said.