The Chetrit Group is bringing on a partnership led by billionaire Adam Neumann’s Flow, Canada Global and billionaire Yakir Gabay’s Yellowstone Trust as the majority owners of the planned Miami River District megaproject.
New York-based Chetrit will remain a “significant” minority partner in the 6.2-acre assemblage on the south bank of the river, just east of I-95 and near Brickell, according to sources. The 4-million-square-foot project could eventually include up to 1,900 apartments and condos, 39,000 square feet of retail, office space, a 17-slip marina and 770 parking spaces. Madison Realty Capital provided the developer with a $310 million construction loan in 2021.
The first phase is almost done. Chetrit is nearing completion on the 54-story, 632-unit luxury apartment tower on the site at 275 Southwest Sixth Street. At least two additional towers are planned on the remaining land. In 2022, Chetrit revealed plans tapping David Grutman’s Groot Hospitality to handle the food and beverage programming in the first tower.
Flow will manage the apartment tower and lead development of the rest of the project as managing member of the majority ownership, according to a press release.
The final version of the deal is based on a $525 million market capitalization of the project, which is now called Flow on the Miami River, according to the release.
Neumann, who co-founded WeWork, has been expanding his Flow empire in South Florida and abroad — including in Saudi Arabia.
Flow is developing a three-tower apartment, office and retail project in Aventura; an apartment and commercial complex in El Portal; a 466-unit Flow-branded condo tower at Miami Worldcenter; and the completed Flow Miami and Flow Fort Lauderdale apartment buildings.
Flow is partnering with Canada Global on more than 9 million square feet of mixed-use projects, including about 5,000 apartments, according to the release. Flow purchased 30 percent of Canada Global, an Israeli real estate investment company led by Assaf Tuchmair and Barak Rosen, for about $27 million, according to Calcalist.
The Chetrit family has had the Miami River project in the works for more than a decade. The Miami City Commission approved a major site rezoning and the project’s development agreement in 2015.
Late last year, Chetrit partnered with Montreal-based Lotus International on Chetrit’s long-awaited Miami Beach hotel project, the redevelopment of the Collins Park Hotel at 2000 Park Avenue. Chetrit also secured an $88 million refinancing for the loan backing the property.
The Chetrit family’s empire includes the Chetrit Group and the Chetrit Organization, both of which have been tied up in litigation as of late. In New York, Mayor Eric Adams’ administration is alleging the Chetrit Group, led by Meyer and Joseph Chetrit, allowed a Times Square property once dubbed the city’s “dirtiest” hotel to deteriorate after defaulting on a $233 million loan.
Read more
Development
South Florida
Adam Neumann’s Flow lands El Portal dev site with $71M winning auction offer
Chetrit revives $1B Miami River megaproject
Meyer Chetrit in civil contempt over subpoena, faces $39M fire damages judgment
