The Real Deal Miami

Ocean Terrace developer nabs missing piece of North Beach assemblage

Sale brings Ocean Terrace Holdings to $64.3M in North Beach

September 04, 2015 12:00PM
By Katherine Kallergis

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7420 Ocean Terrace

7420 Ocean Terrace in Miami Beach

A waterfront property in Miami Beach’s North Beach neighborhood has sold for $7 million, according to Miami-Dade County records.

A company tied to Claro Development and New York-based Access Industries acquired the 7,500-square-foot site at 7420 Ocean Terrace. Kensu Partners was the seller.

The two-story apartment building spans 10,512 square feet, and is surrounded by a handful of properties that Claro affiliate Ocean Terrace Holdings paid $28 million for in March. The company also paid $29.3 million for the Days Inn & Suites up the block.  That brings its holdings to $64.3 million in North Beach.

In August, the Miami Beach City Commission moved forward with zoning changes that will enable the developer, Sandor Scher, to build a pair of high-rises on the site. The proposed zoning changes will allow Scher to build a 250-foot-tall condo with around 70 residential units and a 125-foot-tall hotel with 120 hotel rooms.

Currently, the height limit for new construction is 75 feet. Because the overlay district Scher is championing for Ocean Terrace will increase the floor area ratio (FAR) from 2.0 to 3.0, the zoning change will need to be approved by voters on Nov. 3.

Alex Blavatnik of Access Industries is also listed on the buyer’s corporate records for this week’s sale. Blavatnik is executive vice president and vice chairman of the company, which is an international conglomerate that invests in real estate, natural resources and chemicals, media and telecommunications, and technology and e-commerce.

Scher’s clients include The Standard Miami, The Raleigh Hotel, Faena Hotel & Residences and The Essex Hotel.

Kensu acquired the land for an undisclosed amount in 2002, according to Miami-Dade property records. It’s zoned for commercial development, including mixed-use/entertainment.