Related Approaches Acquisition of Beachfront Condominium in Sunny IslesJanuary 25, 2024
The Related Group is on the verge of finalizing an agreement to acquire most units in an aging oceanfront condominium complex in Sunny Isles Beach, marking a significant development given the company’s history of legal disputes with the property, according to sources.
Led by condo magnate Jorge Pérez and his sons, Jon Paul and Nick Pérez, Miami-based Related is reportedly in a contractual arrangement to purchase most of the units at the Miami Beach Club located at 19051 Collins Avenue, for a reported price of $145 million. The ambitious plan is to eventually demolish the existing H-shaped, two-story building on a 2-acre property and replace it with a new luxury condominium tower.
Constructed in 1951, the Miami Beach Club comprises 107 units. It is situated immediately north of the Residences by Armani/Casa, a luxury condominium tower co-developed by Related and Gil Dezer’s Dezer Development. Records indicate that Related executives have owned units in the Miami Beach Club for several years, with various notable figures, including Andrew Chesnick, Carlos Rosso, and Matt Allen, having ownership stakes.
Notably, lawsuits were filed by the condo association of Miami Beach Club and at least one unit owner against the Related/Dezer entity responsible for developing Residences by Armani/Casa. Allegations in a 2018 lawsuit included damage to the Miami Beach Club property during the construction of the new tower and claims that the Related/Dezer entity engaged in tactics to diminish the marketability of the Miami Beach Club. This lawsuit was ultimately dismissed in 2022.
Despite Related’s silence on the matter, the potential acquisition aligns with a broader trend of developers increasingly targeting older buildings, particularly following the Surfside condo collapse in 2021. The tragic incident prompted changes in state legislation, requiring buildings to fully fund reserves and adhere to safety codes, leading to increased costs for property owners. This acquisition and rising insurance premiums have encouraged some owners to sell their units or collectively seek developers for bulk purchases.
Other notable projects are underway in the Sunny Isles real estate landscape, including Dezer’s Bentley Residences tower and the St. Regis Residences by Fortune International Group and Château Group. Additionally, Related is collaborating with Macklowe Properties on the redevelopment of Biscayne Sea Club in North Bay Village. At the same time, Mast Capital is set to acquire units at Amethyst in Miami Beach. David Martin’s Terra is also eyeing the acquisition of Castle Beach Club at 5445 Collins Avenue.