Macklowe and Related's $47.7M Redevelopment Deal in North Bay Village

New York developer Harry Macklowe and the Pérez family's Related Group are teaming up to purchase a waterfront co-op community in North Bay Village, signaling an exciting new development project. Macklowe Properties, a New York-based firm, has already initiated the acquisition process, with a total purchase price of $47.7 million. Their ambitious vision includes the construction of hundreds of luxury units on a 3-acre site, potentially focusing on condominiums. The site in question, the three-story Biscayne Sea Club, originally built in 1955, occupies the north end of Harbor Island.

Long-standing Contract and Legal Battles Macklowe's firm had been in contract negotiations for the co-op properties at 8000, 8010, and 8020 East Drive for nearly two years. However, this deal has been embroiled in a series of lawsuits, some of which remain unresolved. A representative from Miami-based Related Group confirmed their involvement in this joint venture with Macklowe, while Macklowe himself has yet to comment. Additionally, Macklowe is acquiring units in the adjacent condo building, Majestic Isle, a three-story building completed in 1960, which was deemed unsafe by the city earlier this year.

Co-op Owners Caught in Limbo The closing dates for the Biscayne Sea Club kept getting delayed, leaving co-op owners in a state of uncertainty for months. Many had to move their furniture and terminate tenant leases, resulting in lost potential income. In one settled lawsuit, a group of 18 co-op owners claimed that the Biscayne Sea Club board failed to adhere to the association's bylaws by agreeing to sell the property to Macklowe for $40 million, $15 million less than the price approved by co-op shareholders. The property had been on the market for more than two years, initially listed at $55 million.

Legal Representation and Commissions Haber Law attorneys, including Harold Lewis, Ariella Gutman, and Max Haber, represented around 50 owners at the Biscayne Sea Club. The legal complexities surrounding the deal had hindered its progress, and it was crucial to restore trust among the homeowners in the seller's representation. BrokerNation, a Miami-based brokerage, also took legal action against Macklowe's affiliate, seeking its commission and eventually securing a $1.4 million commission. According to Jorge Fors Jr., BrokerNation's attorney, the purchase price should not have been reduced, and the deal should have closed at the originally listed $55 million.

Development in North Bay Village Macklowe's expansion into North Bay Village reflects the growing trend of developers targeting older condo communities across South Florida, especially following the tragic collapse of Champlain Towers South in Surfside. The village's commission approved height increases for specific areas, allowing for taller buildings. With the increased pressure to maintain buildings and carry out necessary repairs, unit owners in older properties have opted to sell to developers in bulk buyout deals. In New York, Macklowe faced a setback in acquiring an office building for a planned supertall, ultimately losing the property to a different buyer due to financial constraints.