This Week's South Florida Deal Sheet: Witkoff, Monroe Land $430M Loan For Miami Beach Condos
Miami-based Witkoff Group and Chicago-based Monroe Capital secured a $430M construction loan for a luxury condo development in Miami Beach called Shore Club Private Collection, according to a release. The loan, which was provided by JPMorgan Chase, was announced as the largest loan ever provided for a residential development in Miami.
Shore Club will include 49 residences with two to six bedrooms starting at around $6M. Two-thirds of the inventory is already sold, and the development has surpassed $550M in sales, according to a release from the developers. Construction is expected to begin later this year with a delivery date in 2026.
The development includes a 20-story, 45-unit condo tower along with an update to the historic Cromwell House that will convert it into three duplexes and a full-floor penthouse. The Shore Club, located on a 3-acre development site at 1901 Collins Ave., will also include a 6K SF standalone home.
The developers, which acquired the site in 2021 from New York-based HFZ Capital Group for an undisclosed price, are also planning a 75-room hotel at the property.
SALES
Entities affiliated with Blackstone subsidiary Link Logistics paid an affiliate of PGIM Real Estate $162M for the seven-building Quiet Waters Business Park in Deerfield Beach, the South Florida Business Journal reported. The sale of the 675K SF industrial park at 710 to 750 Powerline Road and 3155 to 3161 Southwest 10th St. works out to around $240 per SF.
PGIM built the business park on 41 acres in 2004. It has around 30 tenants. Cushman & Wakefield’s Mike Davis, Dominic Montazemi, Rick Brugge, Rick Colon and Greg Miller represented the seller in the transaction, according to a release. The brokerage’s industrial team of Matthew McAllister, Christopher Thomson, Chris Metzger and Rick Etner will handle leasing at the property moving forward.
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CS Ventures paid $18.3M to acquire two adjacent mixed-use properties in Palm Beach with 17K SF of office, retail and restaurant space, The Real Deal reported. CS Ventures, a Palm Beach-based partnership between Spencer Schlager and Charles Rosenberg of New York-based Rosemark Management, acquired the properties at 375 South Country Road from an affiliate of Colorado-based investor Mark Hunt, who bought them in 2021 for $16M as part of a $58M Palm Beach portfolio. CS Ventures took out a $10M loan for the acquisition from Vista Bank and is planning “significant capital improvements” at the half-acre property, which is roughly 50% occupied.
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FirstService Residential sold two Hollywood office buildings the property management company occupies for $7.4M. The sale comes ahead of its relocation to Plantation in the first quarter of 2024, according to a release. The buyer was Hollywood Crown LLC, which is registered in public records to Etan Raz of RS Trading Co., a wholesale distributor specializing in liquidations and overstock merchandise. The 2.7-acre property at 2950 North 28th Terrace was developed in 1968 and includes a 10K SF, single-story building and a 25K SF, two-story building. Colliers Executive Vice President Robert Listokin represented the seller.
LEASES
Airplane engine maintenance company CTS Engines signed a long-term, 216K SF lease for a full building at the under-construction Osprey Logistics Park. CTS Engines plans to establish its headquarters at the 22-acre industrial park at 12000 Northwest 39th St. in Coral Springs. The two-building, 427K SF park is being developed by Foundry Commercial and is expected to deliver in the fourth quarter. CTS Engines will occupy Building 2 at the property; Building 1 is still available for lease. Colliers Executive Vice Presidents Steven Wasserman and Erin Byers represented the tenant, while Matthew McAllister and Chris Metzger of Cushman & Wakefield repped the landlord.
CONSTRUCTION AND DEVELOPMENT
Coral Rock Development Group unveiled plans for a 200-unit apartment development in Allapattah that will leverage some of the provisions of Florida’s Live Local Act, according to a release. The project from the Coral Gables-based development firm is called Dulce Vida and includes a new public library on the ground floor that will replace the Miami-Dade Public Library System Allapattah Branch Library.
Dulce Vida, located on 1.3 acres at 1785 Northwest 35th St., will have units targeting different income levels. Eighty-five units will be for tenants making 60% of the area median income or less, 85 units are designated as workforce housing at 100% AMI, and 30 units will be for tenants at 120% AMI. The income targets would qualify the development for tax exemptions under the provisions of the Live Local Act, which went into effect on July 1, but Coral Rock didn't disclose which aspects of the law it plans to leverage for the project.
Rents at the property will start at $1,084 for studio apartments and go up to $1,393 for two-bedroom units, including utilities. The project is scheduled to break ground in the third quarter of 2024 with a scheduled delivery at the end of 2025. Coral Rock has partnered with a local nonprofit called Miami Bethany Community Services to provide community outreach and “ensure that Dulce Vida positively impacts the community,” according to the release.
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Dacra, a Miami-based development firm led by Craig Robins, is planning a 20-story apartment building at the southern end of the Miami Design District, Commercial Observer reported. Dacra filed plans with the Miami Urban Development Review Board for Tower 91, which would include 107 rental units, 22K SF of ground-floor commercial space and 227 parking spots at 91 Northeast 36th St. A 4K SF retail building and a 4K SF vacant office building, which were constructed in 1926, sit on the site today.
Tower 91 would be the first rental development for the Design District, a high-end shopping destination spread across 18 blocks that was developed by a partnership between Dacra and L Catterton Real Estate, a private equity firm backed by luxury brand LVMH. Brookfield also owns a stake in the Design District development.
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Fort Lauderdale-based developer Urbanoco Co. is planning a 274-unit apartment building called DeParc on a 1.7-acre site just north of Holiday Park in Fort Lauderdale, SFBJ reported. Urbanoco acquired the site at 901 East Sunrise Blvd. through an affiliate in 2022 for $7.2M and is proposing a 14-story, 434K SF building with 5K SF of ground-floor retail and 369 parking spaces. The development will include apartments ranging from studios to two-bedroom units as well as seven townhouses on the ground floor. A Hertz rental car building at the site would be demolished to make way for the project.
THIS AND THAT
A 600-acre development plan in Wellington proposed by local landowner Mark Bellissimo and backed by a group of wealthy investors and celebrities is facing local pushback.
The project is being proposed by Wellington Lifestyle Partners, a joint venture of Bellissimo, former eBay executive Jeff Skoll and Nexus Luxury Collection, a celebrity-backed development group that includes golf legends Tiger Woods and Ernie Els, pop star Justin Timberlake and British private equity billionaire Joe Lewis of Tavistock Group.
The project, to be called The Wellington, would add more than 400 residences to the area across two large assemblages. The development team is asking Wellington officials to approve variances to density and other zoning changes to allow the project to move forward.
The plan has been the subject of contentious debate in the village, which is home to the Wellington International equestrian showgrounds and is considered the winter equestrian capital of the world. After two meetings in June, the village’s Equestrian Preserve Committee recommended the town reject the development plan because it doesn't include blueprints for proposed new horse showgrounds, The Palm Beach Post reported.
Last week, the Wellington Planning and Zoning Board held two meetings to solicit public comment where several residents expressed anxiety about preserving equestrian culture in the village along with concerns over traffic and the project’s proposed density, WPTV reported. The zoning board will make a recommendation to the village council, which will have the final say on the development’s approval.
