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Related, BH secure 99-year ground lease for Marina Village apartment project
JV plans two 20-story buildings with 424 rentals and 8K sf of retail in Riviera Beach
From left: Related Group’s Jon Paul, Jorge, and Nick Pérez; BH Group’s Isaac and Liat Toledano; and a rendering of the Marina Village apartment complex in Palm Beach County (Related Group, BH Group, Cohen Freedman Encinosa & Associates Architects)
Related Group and BH Group are adding another planned project to the joint venture’s ongoing pipeline.
Late last month, the Riviera Beach City Council, acting as the board of the city’s Community Redevelopment Agency, approved a 99-year ground lease with Related and BH to develop a pair of 20-story buildings with 424 apartments and 8,000 square feet of retail in Marina Village. The joint venture also includes Tezral Partners, a West Palm Beach-based real estate firm led by Tony Brown, a former executive director of the Riviera Beach CRA who was fired in 2016.
JLL brokered the lease agreement for the vacant property at 190 East 13th Street, according to city documents.
Marina Village is a 90-acre waterfront redevelopment site where Coconut Grove-based Related had a separate deal with the city to build another two-tower rental complex with 399 units. The development firm recently completed Icon Marina Village at 4444 and 4334 North Flagler Drive.
Designed by Miami Lakes-based Cohen Freedman Encinosa & Associates Architects, the project Related and Aventura-based BH are proposing will feature a mix of studios, one-, two- and three-bedroom units, ranging from 490 square feet to 1,195 square feet. The project will have 138 affordable units among the 424 apartments, and a 517-space parking garage.
The joint venture anticipates paying Riviera Beach $139.7 million during the first 45 years of the lease, a city memo states. Annual rent payments will start at $70,000, and increase every year by 2 percent during the first 15 years of the ground lease. The rent payments are abated until construction is completed, which is expected in 2024, the letter states. In the 16th year, the rent payments convert to 1 percent of the multifamily project’s gross income. If the ground lease is sold, the CRA will get 0.5 percent of the sales proceeds.
Related, led by Jorge Pérez and his two eldest sons Jon Paul and Nick Pérez, and BH, led by Liat and Issac Toledano, are partnering on multiple planned projects in South Florida. This month, the joint venture paid $47.5 million for a Pompano Beach development site. The 3.7-acre waterfront property at 20 North Ocean Boulevard has site approval for a mixed-use project with a 24-story tower with 77 condos, and a 22-story, 303-key hotel with 49 condo-hotel rooms.
The two firms are also co-developing a 38-story condominium and a 43-story hotel on development sites adjacent to the Diplomat Beach Resort in Hollywood. Other projects in the Related and BH pipeline are in Aventura, Plantation and North Miami.