Kolter Group and BH Group Lists Oceanfront Site for $110M

Key Points:

• Significant Upsell: Kolter Group and BH Group aim to sell a 1-acre oceanfront property on Miami Beach for $110 million, after purchasing it for $24 million in November 2023. That's about 4.5x the purchase price.

• Development Potential: The site, currently housing the Crystal Beach Suites Miami Oceanfront Hotel, can be redeveloped into a 200-foot tall condominium project with up to 150 units and approximately 138,000 square feet.

• Strategic Timing: The decision to sell aligns with recent zoning changes in the area, notably the upzoning of the nearby Deauville Beach Resort property, enhancing development prospects.

Kolter Group and BH Group are capitalizing on Miami Beach's evolving real estate landscape by listing a prime oceanfront development site at 6985 Collins Avenue for $110 million. Acquired for $24 million in late 2023, the property offers substantial redevelopment opportunities in a burgeoning market.

Prime Oceanfront Opportunity:

• Current Site: The property is home to the 84-room Crystal Beach Suites Miami Oceanfront Hotel, situated on a 1-acre lot on Miami Beach's North Beach neighborhood.

• Redevelopment Potential: With a maximum floor area ratio (FAR) of 3.0, the site permits the construction of a 200-foot tall condominium, accommodating up to 150 units and totaling about 138,000 square feet.

Market Dynamics and Strategic Timing:

• Zoning Enhancements: The listing coincides with favorable zoning developments in the vicinity. Notably, the nearby Deauville Beach Resort property recently received a recommendation for increased density, potentially allowing a project spanning nearly 916,000 square feet. This trend indicates a supportive environment for upscale developments in North Beach.

• Investment Rationale: The significant markup from the initial purchase price reflects the property's enhanced value due to these zoning changes and the overall demand for luxury oceanfront residences in Miami Beach.

Developer Profiles:

• Kolter Group: Based in Delray Beach, Kolter Group has a diverse portfolio encompassing luxury condominiums, master-planned communities, and branded hotels across the southeastern United States.

• BH Group: Aventura-based BH Group focuses on high-end residential and commercial projects, with a track record of successful developments in South Florida. Read Traded's recent profile with Isaac Toledano, who leads the firm with his wife, Liat Toledano.

The listing of 6985 Collins Avenue presents a lucrative opportunity for investors aiming to capitalize on Miami Beach's dynamic real estate market. The property's prime location, coupled with favorable zoning developments, positions it as a compelling prospect for luxury condominium development.