PMG Developing Condo Project With Miami 'Ultraclub'
The $40M venue E11even Miami has been described as a strip club, "technically not a strip club," a club where dancers just happen not to have tops on and "an R-rated version of the alien bar in the opening sequence of Star Wars, but add in a great sound system with strippers." Its website defines it as an "ultraclub."
Whatever the definition, it is popular. The 20K SF space, which is open 24 hours, has a rooftop restaurant and bar, 39 private rooms, huge LED screens and bottle service. Normal weekends feature Cirque du Soleil-style performances with aerialists, contortionists and go-go dancers. Concerts and special events feature world-famous DJs, rappers and sports stars.
"It's a lifestyle club," said Kevin Maloney, founder and managing partner of Property Markets Group, which is partnering with the club's owner, hospitality brand E11even Partners, to build a luxury high-rise condo project, E11even Hotel & Residences.
E11even Hotel & Residences is slated for Downtown Miami’s Park West district and is set to break ground later this year. It has been designed at 65 stories with units that start at $300K for studios. Promotional materials say the project will have a food hall, a casino-style sports lounge, a live music venue, a 20K SF day club, a recording studio, a fitness center, ballrooms and a rooftop private club. WNBA player Candace Parker, ESPN co-host Sage Steele and MMA fighter Luke Rockhold have all reportedly bought units.
"We brought in [New Age author] Deepak Chopra," Maloney said. "He's creating a meditation and yoga center there. So I guess after some debauchery of some type, you get to go meditate and cleanse."
Maloney said he has never visited E11even because it's not his style, but he said the younger staff at Property Markets Group love the concept. Within four weeks of launching sales, all 420 units were under some form of contract, Maloney said.
"Soft deposit, contract signed, unsigned reservation, going through the process in one form or another," he said. "I've never seen absorption in any project like that."
Because some buyers bought multiple units to combine into larger ones, the unit count is now about 350, Maloney said. There has been some recission since people signed contracts, so the developers now have about 50 or 60 units to resell.
E11even Partners announced in April that it would accept cryptocurrency for transactions at the club, and PMG announced June 3 that it will be the first developer in the nation to accept cryptocurrency for the pre-construction condo deposits.
Deposits, which come to 40% of a unit price, are made in four stages, and crypto will be accepted for the second, third and fourth rounds of deposits, Maloney said. Banks and title companies will still require that crypto be converted into U.S. dollars at signing.
"It's really no different than if I was taking dollars and I was buying a London development deal and the developer in London said, 'Hey, you've got to convert to pounds or to the euro," Maloney said.
The Miami area has been beset by a hard-partying reputation, and Maloney acknowledged that PMG received some blowback for leaning into a party-centric vibe that some see as going hand in hand with crime. He pointed out that the club has been successful since 2014 and said PMG hoped to make the condo a high-end community.
It's become common in South Florida to license brand names for condo projects. The practice can largely be traced back to Trump-branded buildings, many of which have dropped the Trump name as former President Donald Trump became an increasingly polarizing figure. Maloney said that the E11even project is a full partnership, though, and even after selling out the condos, PMG would remain a partner in its food and beverage elements. He expected the brand to stay strong and the name permanent.
PMG's team has developed some $7B of projects in 28 years, mostly in New York and South Florida. It is developing a 100-story Waldorf Astoria Residences Miami in partnership with Toronto-based private equity firm Greybrook Realty Partners, global investment company Mohari Hospitality, S2 Development and Hilton. It also has eight “social living,” or co-living, communities around the country.