Related and BH Acquire 8 Acres for Hollywood, FL Mega Development at $51.5 MillionDecember 29, 2023
Florida’s real estate arena is abuzz with the announcement of a noteworthy acquisition by the Related Group and BH Group, a joint venture based in Miami-Dade. The duo has acquired an expansive 8-acre development site adjacent to the Diplomat Beach Resort in Hollywood, Florida, marking a pivotal move in their strategic expansion of the real estate portfolio in the region.
The joint venture reportedly invested $21.5 million in acquiring a 4.5-acre site at 3690 S Ocean Drive, conveniently located next to the 1,000-room Diplomat Beach Resort. This recent purchase follows their earlier acquisition in August, where they secured an adjacent 3.5-acre site at 3451 S Ocean Drive for $30 million. These contiguous parcels constitute Diplomat Landings, featuring a 52,000-square-foot retail plaza, a private marina, and two above-ground parking garages.
Beyond land acquisition, Related Group, and BH Group have ambitious plans for these sites. After obtaining the approval, the developers are set to undertake a significant property transformation. In August, the Hollywood City Commission approved a 38-story development comprising 350 condos on the larger lot. Additionally, they greenlit a 43-story condo-hotel featuring 500 rooms, to be branded by Hilton, on the smaller lot.
This strategic move follows a significant transaction in which Trinity Investments from Honolulu and the asset management arm of Credit Suisse acquired the oceanfront resort for a staggering $835 million—a deal that stands out as one of the most significant hospitality transactions in the country this year. Jaret Turkell of Berkadia, a prominent name in the real estate industry, masterfully brokered the recent parcel sale.
The Related Group and BH Group acquisition serves as a testament to the dynamic nature of Florida’s real estate market, highlighting the escalating interest and investment in the region, particularly in the vicinity of the Diplomat Beach Resort. As the real estate landscape evolves, industry professionals, investors, and potential homeowners will closely monitor the transformative developments on these newly acquired sites.