What’s the Deal? | Inside The Luxurious Bay Harbor Towers With Ari Pearl

What attracted you to this deal?

We bought a hotel in Bay Harbor called the Altair which is a few blocks away from this property. We bought that property about three years ago during COVID and it's been very successful. We've had a front row seat to see what's going on in Bay Harbor and the excitement surrounding the islands. So Bay Harbor has definitely been on our radar. The Bay Harbor market is super hot right now, particularly among young families. My youngest son brought this property to me, and it was brought to him by a local broker that we know. This property isndesirable since it’s a total of four lots, making it the largest developable piece of land on the water, and has one of the best view angles on the island. This property sits on the east side facing the Bal Harbour Marina and Haulover Inlet, so the views are just incredible. We worked very hard to buy out all of the unit owners that were in the existing condo building, and we did that successfully. Subsequently, we terminated the condominium form of ownership and knocked down the building, making it suitable for our new project.

How did you secure financing for this deal?

The first thing I did was call my good friend Faisal Ashraf, founder of Lotus Capital Partners who I've known for around 20 years. He's done probably close to a billion dollars of financing with me over two decades and he sourced the financing very quickly with a company called MSD Capital, which is Dell’s financing arm for a bridge to construction loan. Essentially, MSD financed the acquisition as well as the construction. I know there are other projects now that have construction financing, but for a good while, we were the only project in Bay Harbor to have construction financing. I believe that gives buyers confidence.

What sets Bay Harbor Towers apart?

Our vision is to build the most high end, luxurious building in the Bay Harbor market. We're going to build 44 units with, in my opinion, the most amenitized program of any other condo in Bay Harbor. We have a rooftop oasis that has a resort style infinity edge pool with a jacuzzi that hangs over the edge of the building with cabanas, two outdoor summer kitchens, and tons of lounging areas. Also on the rooftop, we have four private pools for the four penthouses. Then on the second floor, we have an amenities level, which has an indoor health club, including an indoor full size lap pool, as well as wet sauna, dry sauna, cold plunge, hot plunge, incredible gym facility, massage rooms, and other workout areas. We also have a great social room and library along with a 13 slip marina for our residents. Certainly more amenities than any other
project in Bay Harbor.

Who are the key partners or collaborators on this deal?

Kobi Karp is the architect and this marks the 20th project that we're doing together in over 20 years. Interiors by Steven G is our interior design firm as well as the largest interior design firm in the state of Florida. I've also worked on many projects with them over the years. Clad is our landscape architecture firm and they're incredible. We’ve also partnered with Fortune to do the sales. We use Fortune because of their reach in South America and Europe, as well as the local Florida market and the northeast, and they've proven to be very successful. We have more than a third of the project sold, and our sales center has only been open for two weeks. Finally, we’re partnering with Jonathan Leifer who is a childhood friend and the Founder of L3C capital Partners. Since its inception, L3C has owned and operated over 8,500 Residential Units.
Jonathan and I did the Altair hotel project together as well.

What are your key takeaways from this project?

This deal served as a reminder to use a sales team that is local to the market. We have outperformed our competitors in the market because we're using a sales team that is super experienced in Bay Harbor that just recently completed the sellout of a very successful high end project on the island. They know all the local brokers intimately, and they were quickly able to start up the sales process and were very successful in getting a mix of buyers from the Northeast, Europe, South America, Chicago, and California. So I think using a local team with local experience is critical, which holds true for every aspect of a deal. Our architect has done many buildings in Bay Harbor. Our interior design firm, our land use attorneys, and Fortune have all done other projects in Bay Harbor, and I think that's critical.

What’s the story behind PPG Development?

After selling a business I owned in New York in 2000, I moved south in 2001, bought my first property with a friend, and began to develop. At PPG Development, we've carved a niche for ourselves by focusing on prime locations and offering luxury living combined with comprehensive recreational experiences. From the start, my goal was to create spaces that redefine the connection between living and recreation, ensuring each project not only meets but surpasses the expectations of our residents and guests. We currently have over 2,500 residential units in our pipeline and a collection of luxury Hospitality and Resort projects spread throughout South Florida. My team and I take a hands-on approach to every project, overseeing every aspect from acquisitions and financing to construction and operations.

What advice would you give to a CRE pro starting in the industry?

First and foremost, go for it!!! You're young and you can afford to take risks. I didn't start at the bottom when it came to developing real estate, I learned on the job. It’s also important to figure out specifically what you want to do. You can't be general and say, ‘I want to be in development or I want to be in real estate.’ But you need to figure out what areas you love and are talented in, whether you want to be an architect, brokerage, construction, or development. Then, within every one of those areas, there are subcategories. So if you want to be in development, do you want to do industrial development, residential, hotel, or retail? Spend the time figuring out what you like, what you love, where your passion is, and go after something specific. Young people come into my office for jobs and I ask them what they want to do or where their strengths lie. They tend to be very general, and they don't know exactly what they want to do and therefore could have just as easily picked another career. It's something that you need to do your research on, so go out and do an internship or test the waters in different areas.

 

Traded Student Ambassador Program
This interview was conducted through Traded’s Ambassador Program in collaboration with Thomas DeRuvo and Hope Mullane of Rutgers University.

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