Developer Sandor Scher just closed on the final piece of his Ocean Terrace assemblage in North Beach, The Real Deal has learned.
The acquisition comes about a year after the Miami Beach Commission approved an overlay district for the Ocean Terrace historic district, which will allow Scher, co-founder of Claro Development, to build parts of his mixed-use project.
The developer paid $14 million for the properties at 7441 Collins Avenue and 7449 Collins Avenue, a deal that breaks down to about $730 per square foot, Scher said.
Scher and his main investor, Alex Blavatnik of Access Industries, spent at least $65 million assembling land before this deal. In all, it totals 2.2 acres of land with about 350 feet on the ocean, and the development will have condo, hotel and retail components.
Silvia Coltrane of Real Estate Transactions Inc., who has worked with Scher on his assemblage, brokered the sale. Daniel Faust of Akerman LLP and Sanford Reinhard of Sanford & Reinhard PA represented Scher, and attorney Joel Piotrowski represented the seller, 7441 Collins Avenue LLC, which is led by investors Haim Yehezkel and Avi Dishi.
Yehezkel is founder and CEO of North Beach-based Elysee Investments, according to his company’s website. Tenants of the buildings include Venetian Nail Salon & SPA and Ace Cash Express.
“We’re pleased that this transaction is complete and we’re looking forward to the future,” Scher said, declining to comment on his timeline or elaborate on plans for the properties, which include restoring the historic Broadmoor and Ocean Surf hotels.
The commission’s vote last year was the culmination of nearly two years of efforts by the developer. In 2015, the Ocean Terrace project lost a citywide vote on increasing the floor area ratio in the area from 2.0 to 3.0. Scher then brought in architect Richard Heisenbottle, who specializes in historic preservation, and urban planner Cesar Garcia-Pons, an associate principal at Perkins+Will Miami and Revuelta Architecture, to draw up new plans for the area that would also address the concerns of neighbors and preservationists.
In May 2016, affiliates of Claro Development closed on a $15 million construction loan for the properties between 73rd and 75th streets.