Miami Beach Oceanfront Development Site Hits Market at $110M, Signaling Luxury Development Boom
In a striking move that underscores the robust demand for prime Miami Beach real estate, a joint venture between Kolter Group and BH Group has listed their oceanfront development site for an ambitious $110 million. This strategic listing represents a potential windfall for the developers, who acquired the property for $24 million in late 2023.
Strategic Location and Development Potential
The one-acre property, currently home to the Crystal Beach Suites Miami Oceanfront Hotel at 6985 Collins Avenue, sits in the increasingly desirable North Beach neighborhood. According to Berkadia's marketing materials, the site holds significant development potential, allowing for:
- A luxury branded condominium project rising up to 200 feet
- Approximately 150 residential units
- Total development area of 138,000 square feet
- Current Floor Area Ratio (FAR) of 3.0
Market Timing and Zoning Developments
Jaret Turkell, the lead Berkadia broker handling the listing, points to recent zoning developments as a catalyst for the timing. Nearby, Terra's partnership with the Meruelo family recently secured crucial approvals for their Deauville Beach Resort redevelopment project, potentially setting precedents for increased density in the area.
The neighboring development's proposed changes include:
- An increased FAR of 5.5 (up from 3.0-3.15)
- Potential development space of nearly 916,000 square feet
- Unanimous support from the Miami Beach Planning Board
Investment Advantages and Market Position
Omar Morales, part of the Berkadia listing team, emphasizes a crucial advantage of this property: unlike many oceanfront opportunities in Miami Beach, this site avoids the complications of condo termination processes. This distinction offers developers a significantly streamlined path to development, avoiding:
- Extended litigation periods
- Complex buyout negotiations
- Potential delays of 24+ months
- Additional costs associated with condo terminations
Current Market Dynamics
The Miami Beach luxury condo market continues to demonstrate remarkable strength, with new oceanfront developments commanding premium prices:
- Ultra-luxury oceanfront condos preselling at over $4,000 per square foot
- Strong demand for branded residential projects
- Growing interest in North Beach as a luxury destination
- Limited availability of clean development sites
Market Insights
What makes this property particularly valuable in today's market?
The site offers immediate development potential without the complications of condo terminations, which have become a significant barrier to entry in Miami Beach's oceanfront market. Its location in North Beach, combined with recent nearby upzoning precedents, positions it perfectly for luxury development.
Why is the timing significant for this listing?
Recent zoning changes in the area, particularly the Deauville site approval, have created favorable conditions for development. Additionally, the current market's strong demand for luxury condos and limited available oceanfront sites makes this an opportune moment for developers.
What advantages does this site offer compared to other oceanfront properties?
Unlike properties requiring condo terminations, which can involve lengthy legal processes and uncertain timelines, this site offers a clear path to development. The existing hotel structure can be demolished without the complications of resident buyouts or legal challenges.
How does this listing reflect broader market trends?
The substantial price increase reflects growing confidence in Miami Beach's luxury real estate market, particularly in the North Beach area, which is increasingly attracting high-end development projects and wealthy buyers seeking new construction opportunities.
This strategic listing represents a significant opportunity in Miami Beach's evolving real estate landscape, particularly given the scarcity of clean development sites and the strong market for luxury oceanfront residences. The property's potential for immediate development, combined with favorable market conditions and recent zoning precedents, positions it as a compelling opportunity for developers seeking to establish a presence in this prestigious market.
