Major Real Estate Deal in Sunny Isles Beach: A New Luxury Condo on the Horizon
A collaboration among three prominent real estate firms has culminated in the acquisition of the remaining units at the aging Miami Beach Club in Sunny Isles Beach for a staggering $131.8 million. After more than ten years of negotiations and planning, this significant purchase comprises 100 units within the 108-unit complex located at 19051 Collins Avenue.
About the Acquisition
The joint venture involves:
- The Related Group, led by the Pérez family
- Dezer Development, spearheaded by Gil Dezer
- BH Group, represented by Isaac and Liat Toledano
Interestingly, Related Group already owned eight units prior to this bulk purchase, showcasing their long-standing interest in the property.
Future Plans for the Miami Beach Club
The developers plan to demolish the current H-shaped, two-story structure to make way for a luxury condo tower on the 2-acre parcel.
Key Features of the New Development:
- Proposed building height: 828 feet above sea level (or 820 feet above ground)
- Permit filings for this ambitious project were submitted to the Federal Aviation Administration in May, highlighting the developers’ serious intentions.
Location and Context
Historical Significance
The Miami Beach Club was established in 1951 and is situated immediately north of the Residences by Armani/Casa, another luxury development by Related and Dezer. Given this prime location, the site represents an attractive opportunity for redevelopment.
Legal Challenges
Despite the excitement surrounding the acquisition, Related Group has faced a tumultuous history with the Miami Beach Club’s condo association. Notably, a 2018 lawsuit alleged that construction activities associated with the Residences by Armani/Casa project adversely affected the Miami Beach Club property. The condo association also claimed the developers engaged in tactics to undermine the marketability of Miami Beach Club units. Fortunately for the developers, this lawsuit was dismissed in 2022.
A Proven Track Record
The leading developers—Related Group, Dezer Development, and BH Group—bring extensive experience in condo buyouts. This complex and often lengthy process has proven fruitful for these companies in the past:
- The duo of Related and Dezer successfully transformed the former Seashore Club into the Residences by Armani/Casa, completing the 60-story, 308-unit tower in late 2019.
- Just last month, BH and Mast Capital acquired the majority of units at the 39-unit Bayshore Park in Coconut Grove, showcasing their assertive market approach.
Trends in the Market
Developers are increasingly focusing on older, waterfront condo properties with the intent to dissolve existing condo associations and redevelop them into high-end towers. Following the tragic collapse of Champlain Towers South in Surfside, new condo safety legislation has been enacted, mandating that condo associations ensure their properties meet safety standards and financial reserves are adequately funded.
Other Ongoing Projects
In addition to the Miami Beach Club redevelopment, Related has teamed up with Macklowe Properties to revamp the Biscayne Sea Club in North Bay Village, turning it into a collection of luxury units.
Conclusion
This major real estate deal signifies not only the commitment of the involved developers but also reflects evolving trends in the South Florida luxury market. As older buildings give way to modern developments, buyers and investors are keeping a keen eye on these promising opportunities. With the Miami Beach Club set to be transformed into a luxury powerhouse, the future of Sunny Isles Beach looks increasingly promising.
For more details on real estate trends and luxury developments, explore resources on The Real Deal and YIMBY.