A joint venture between Kolter Group and BH Group is looking to sell an oceanfront development site in Miami Beach for a big profit.
Delray Beach-based Kolter and Aventura-based BH tapped Berkadia to market the 1-acre property at 6985 Collins Avenue with a whisper price of $110 million, The Real Deal has learned. The developers paid $24 million for the site, which is home to the Crystal Beach Suites Miami Oceanfront Hotel, in November 2023.
That means they’re looking to flip the property for more than four times their purchase price just over a year ago.
BH is led by Isaac and Liat Toledano, and Kolter is led by CEO Bobby Julien.
“The partners think it’s the right time to take the property to the market right now, given the recent upzone that David Martin got,” said Berkadia’s Jaret Turkell, who is the lead broker on the listing.
Turkell is referring to the partnership Martin’s Terra has with the Meruelo family, the majority owner of the former Deauville Beach Resort property about two blocks south at 6701 Collins Avenue. On Tuesday, the developers secured a unanimous favorable recommendation from the Miami Beach Planning Board that will allow the developers to build a larger project on the 3.8-acre oceanfront property. The land use changes require Miami Beach City Commission approval.
The Deauville property currently has a floor area ratio, or overall project size, of 3.0 to 3.15. The developer is seeking legislative changes that would allow for an FAR of 5.5, for a project that could span nearly 916,000 square feet.
The 84-room Crystal Beach hotel, in the city’s North Beach neighborhood, sits on a property with a maximum FAR of 3.0. The site could be redeveloped into a 200-foot tall luxury branded condo project with up to 150 units and about 138,000 square feet, according to marketing materials for the site. The hotel was built in 1950 and would be torn down.
BH is working on a number of planned condo projects across South Florida, many with its partner, Miami-based Related Group. Those include the Viceroy Residences Aventura, the Ritz-Carlton Residences in West Palm Beach and the W Pompano Beach Hotel & Residences.
Turkell is listing the site with his colleagues Roberto Pesant and Omar Morales.
“Virtually every other oceanfront land site in Miami Beach is a condo termination deal, which will take 24+ months to demolish, close, litigate, etc., which is very expensive,” Morales wrote on LinkedIn.
New ultra-luxury oceanfront condo projects in Miami Beach are preselling for more than $4,000 per square foot, Morales wrote.
Condo buyouts, the precursor to condo terminations, can drag on for years.
About 16 blocks south, Mast Capital has been in litigation with sellers at the Amethyst in Miami Beach over a botched condo buyout. The development firm successfully completed a condo termination next door, where it and partner Starwood Capital Group are building an ultra luxury condo building called the Perigon.
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