JDS Development Group, in collaboration with Terra Group, has announced the acquisition of the Bay Garden Manor Condominiums and a neighboring shelter in Miami Beach, a transaction valued at approximately $120 million.
The site, located at 1250 West Ave, sits adjacent to JDS Development’s Monad Terrace and will be transformed into a luxury waterfront condo tower according to a report by The Real Deal.
The purchase was financed through a senior secured loan of $98 million from Northwind Group, a Manhattan-based lender.
As part of the acquisition, JDS and its partners have secured ownership of over 95% of the 238-unit Bay Garden Manor condominium.
They have also obtained entitlements to construct a 330-foot tower with 100 luxury condos, exceeding the height typically allowed for such developments by more than double.
Northwind Group’s Managing Partner, Ran Eliasaf, acknowledged the developers’ proven track record in executing complex projects and emphasized Northwind’s commitment to providing flexible financing solutions.
In addition to JDS and Terra, the deal also involves partnerships with Gianluca Vacchi’s GV Development and RG Development.
A team from Walker & Dunlop, including Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Michael Diaz, and Sean Bastian, represented the developers in the transaction, while Northwind was represented by Polsinelli’s John Vavas.
David Martin, CEO of Terra Group, expressed enthusiasm about the project, highlighting its potential to enhance the area’s reputation and public spaces through the natural beauty of Biscayne Bay and the completion of the long-awaited baywalk.
Martin’s vision for the project aims to provide a resilient neighborhood that prioritizes public safety and enhances local services for residents.
Current residents of the Bay Garden Manor condos will remain in their units for approximately six months before needing to vacate, although the developers still face the challenge of terminating the condo association prior to demolition of the building.
Condo buyouts represent a complex endeavor for many developers, particularly with fears of prolonged litigation increasing in recent years.
Many condo associations are grappling with expensive maintenance and development mandates, particularly following high-profile incidents such as the Surfside condo collapse in 2021.
The president of Bay Garden Manor’s condo association, Jorge Betancourt, noted that developers started showing interest in the building after the Surfside tragedy, as the costs associated with maintenance, repair, and insurance have continued to escalate.
In conjunction with the new luxury condo project, JDS Development has also committed to acquiring the Bikini Hostel at 1247 West Ave as part of the agreement with the city.
The developers have proposed either constructing a public park in place of the hostel or providing Miami Beach with $1.5 million.
The Bikini Hostel, situated directly across from Bay Garden Manor, has been operating as temporary housing for the homeless since November, following the closure of a city shelter.
However, complaints from neighbors regarding safety led Miami Beach officials to pursue the hostel’s closure.
In June, Miami Beach commissioners approved plans to demolish the building, which dates back to 1958, and the shelter ultimately shut down in August, displacing nearly 100 residents as reported by Axios.
Michael Stern, the head of JDS Development, is a notable figure in the real estate industry, credited with various high-profile projects including the 791-condo Mercedes-Benz Place and Dolce & Gabbana Residences at 888 Brickell Ave.
Currently, Stern is involved in litigation with an unidentified individual regarding an online campaign alleging fraud against him.
The search for the person behind the online accounts operating under the pseudonym JDS Pulse has been ongoing, with little progress reported since Stern filed the lawsuit.
The most recent legal action filed in Miami-Dade County Circuit Court involved a notice of intent to subpoena documents from various online companies.
The impact of these developments on the Miami Beach community remains to be seen as the project progresses.
image source from：bisnow
