Terra JV Secures $120M to Develop Miami Luxury Tower
The project will take shape at the site of an existing condo building.
Terra has partnered with JDS Development Group and investors Rafi Gibly and Gianluca Vacchi for the construction of a 330-foot-tall luxury community in Miami.
For the first stage of the project, Northwind Group originated a $98 million senior secured loan for the purchase of an existing condo tower called Bay Garden Manor, which the joint venture will redevelop into the new structure.
Developer Michael Stern of JDS paid a total of $120 million for the acquisition, according to The Real Deal. The buy also includes the Bikini Hostel, an adjacent hospitality asset.
Kobi Karp is serving as the project’s architect. The new development will include around 100 luxury units, in addition to ground-floor retail space.
The current 15-story condominium tower, built in 1964 and home to 238 units, had been grappling with rising insurance premiums and maintenance costs. After acquiring more than 95 percent of the units, the development team moved to dissolve the condo association, clearing the way for redevelopment.
The bayfront site is located at 1250 West Ave. in the South Beach submarket of Miami, within walking distance of dining and retail outlets. The property is within 3 miles of Interstate 195 and within 12 miles of Miami International Airport.
Overcoming local opposition
The developers gained approval for the project last month, when Miami Beach commissioners voted to rezone the area to allow for the taller tower, according to The Real Deal.
While only one commissioner voted against the rezoning, some residents who spoke at the meeting expressed discomfort at the proposed development’s height.
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The decision to allow for the demolition of the Bikini Hostel also generated a mixed reaction, according to the Miami Herald, with some residents expressing relief that the structure, which currently houses people experiencing homelessness, would be eliminated. Some advocates, however, lamented the decision to get rid of the shelter, and said they were worried about where the site’s current residents would go.
As part of a public benefits package that JDS is providing the city, the firm will redevelop Bikini Hostel across the street, The Real Deal reported.
Terra continues Miami activity
Terra has begun development on and completed several new projects in the Miami area in recent months. In August, the firm broke ground on Mr. C Hotel & Residences in West Palm Beach, Fla. after securing a $285 million construction loan from TYKO Capital. That project is a joint venture with Sympatico Real Estate.
In January, Terra obtained $291 million in permanent financing for the first phase of Centro City, a 38-acre, mixed-use development in Miami. The community began welcoming residents in March.
