Related Group and BH Group Jointly Acquire Hollywood Diplomat Development Site for $30 MillionAugust 18, 2023
A strategic collaboration between Related Group and BH Group has successfully acquired a prime development site neighboring the iconic Diplomat Beach Resort in Hollywood. This noteworthy transaction, valued at $30 million, was finalized on Friday, marking a significant milestone in the two companies dynamic partnership. While both Related and BH declined to comment on the deal, sources well-versed in the matter confirmed the purchase.
The real estate deal was facilitated by Jaret Turkell and Omar Morales of Berkadia, who skillfully brokered the agreement between the parties involved. The seller, a joint venture of Trinity Investments, headquartered in Honolulu, and Credit Suisse Management, chose to part ways with the property.
Further enhancing this development venture, Berkadia’s Scott Wadler orchestrated a substantial $20 million loan from Bank Hapoalim USA to support the ambitious project’s financial requirements.
In a significant stride forward, the Related-BH partnership secured site plan approval from the city of Hollywood in June. This pivotal approval paves the way for creating a striking 38-story tower, housing a remarkable 350 condominiums. The building will gracefully rise on the vacant parcel adjacent to Diplomat Landing, complementing the existing oceanfront hotel’s allure. This development will also encompass ground-floor retail amenities, enhancing the overall experience for residents and visitors alike.
The visionary minds behind these forthcoming ventures are no strangers to collaboration. The accomplished teams at Related, led by CEO Jorge Pérez along with his sons Jon Paul and Nick, and BH, under the guidance of Liat and Isaac Toledano, have strategically aligned to embark on an array of promising real estate projects across South Florida.
Beyond the Diplomat Beach Resort adjacent parcel, the partners have their sights set on a second vacant parcel within Diplomat Landing. Plans are already in place for a remarkable 43-story, 500-key hotel that promises to elevate the hospitality landscape in the region further. The acclaimed Miami-based architectural firm CFE Architects masterfully designs both projects.
Diplomat Landing, an expansive 8-acre waterfront property along the Intracoastal Waterway, gained attention following Trinity and Credit Suisse’s noteworthy acquisition of the Diplomat Hotel at 3555 South Ocean Drive, a $850 million investment. The recent developments are a testament to Trinity and Credit Suisse’s vision, as they actively sought partners to participate in the co-development of the strategically located parcels.
In a continuous pursuit of excellence, Related and BH have ventured into other notable projects, including the proposed mixed-use development, Plantation City Center, featuring an impressive array of nine buildings accommodating 481 apartments, 17,000 square feet of retail space, and ample parking options. Another venture on the horizon involves offering a premium North Miami waterfront development site known as the former White House Inn on the Bay. Marketed by Related, BH, and Teddy Sagi, the site has garnered attention with an asking price exceeding $25 million.
As this enterprising partnership between Related and BH flourishes, the South Florida real estate landscape can anticipate a series of transformative developments that will undoubtedly leave an indelible mark on the region’s skyline and lifestyle offerings.