Kushner Companies Acquires Distressed Surfside Development Site for $40 Million

Kushner Companies, a prominent New York-based real estate firm led by Charles Kushner, Nicole Kushner Meyer, and Laurent Morali, has made a significant investment in the South Florida real estate market. The company recently acquired a distressed development site in Surfside for a reported $40 million, according to sources.

The transaction involved a collaborative effort between Kushner Companies, the seller Shaya Boymelgreen, and the lender, Fuse Group. Their collective efforts culminated in the successful acquisition of the property located at 9300 Collins Avenue, with the deal officially closing on a recent Tuesday afternoon, according to insiders familiar with the matter.

Kushner Companies has outlined ambitious plans for the property, which include the development of a luxury rental complex. The vacant site is currently zoned for approximately 100 units, with a maximum building height allowance of around three stories. As of the time of reporting, Kushner Companies had not provided an official statement regarding the acquisition, and attempts to reach the company for comment were unsuccessful.

The 2.9-acre property, situated on the west side of Collins Avenue, was sold by Boymelgreen’s Eden Surfside LLC. Despite not being waterfront, the site boasts a prime location, facing the prestigious Fendi Château Residences condominium.

The deal was brokered by New York-based agent Moshe Majeski, marking Kushner Companies’ inaugural venture into Surfside’s real estate market. This acquisition aligns with a growing trend of interest in Surfside, with several other noteworthy developments in the oceanfront town, including Damac Properties’ proposed luxury condo building on the Champlain Towers South collapse property, as well as Multiplan Real Estate Asset Management’s luxury condo project located near Kushner’s newly acquired site at 9309 and 9317 Collins Avenue.

Shaya Boymelgreen initially assembled the Surfside site between 2013 and 2015 at a cost of $26.5 million. His original vision for the property involved a luxury townhouse development, but plans later shifted to a three-story, 200-key hotel concept, which ultimately remained unrealized. Last year, Boymelgreen secured a $30 million loan for the then-planned hotel from Eyal Peretz’ Fuse Group. Peretz clarified that, while the deal was not officially categorized as distressed, there were certain financial matters that needed attention, especially as the loan neared maturity. The loan eventually matured approximately a month and a half prior to the successful Kushner transaction, with legal representation provided by Michael Gallinar of Adams Gallinar on behalf of Fuse Group.

Eyal Peretz expressed satisfaction with the outcome of the deal, stating that he was “very happy” to have reached an agreement with Kushner Companies.

Kushner Companies has a diverse portfolio of large-scale projects in collaboration with various partners throughout South Florida. Recent successes include the $91 million refinancing of their newly completed Wynwood apartment, office, and retail buildings, achieved in partnership with the Miculitzki family’s Block Capital Group. The firm is actively engaged in numerous other projects in Wynwood, Miami Gardens, and Edgewater, where plans are underway for a two-tower apartment development consisting of 1,300 units in conjunction with PTM Partners.

Shaya Boymelgreen, who made a name for himself in the New York City real estate scene and partnered with diamond billionaire Lev Leviev in the early 2000s, encountered legal challenges during the Great Recession. In 2016, the New York Attorney General imposed a two-year ban on Boymelgreen’s involvement in the offer and sale of securities, including condominiums. In South Florida, the Boymelgreen family is actively planning an eight-story, 50-unit luxury condo development called “42 Pine,” having secured a $35.5 million construction loan from BridgeCity Capital for the project in June of the previous year.