BH3 wins city site for major mixed-use project in Delray Beach

Company won't pay for property, which is in an Opportunity Zone, but will fund development

Miami /
Jan.January 30, 2019 12:00 PM

Rendering of AltaWest, Dan Lebensohn and Greg Freedman

BH3 won the city site for a major mixed-use project on West Atlantic Avenue in Delray Beach.

Aventura-based BH3, led by Dan Lebensohn and Greg Freedman, was one of six groups bidding on the public-private partnership to redevelop 6.17 acres on the 600 to 800 block from the city, aiming to transform the downtown area. BH3 was the only developer to not offer money in exchange for the land, but it will spend the most on development, which it values at $100 million. It will also build workforce housing and will give the city 206 parking spaces.

Residents had opposed a previous offer from developer John Flynn for $1.2 million for the land, which was valued at about $15 million.

Rendering of AltaWest

The site is in an Opportunity Zone, which means the developer can qualify for a major federal tax incentive for developing the project. The federal program allows developers and property owners to defer and possibly forgo paying some of their capital gains taxes, or taxes resulting from the sale of certain assets.

BH3’s proposal, called AltaWest, calls for 43,000 square feet of ground floor retail, 21,600 square feet of professional office space, a 33,000-square-foot grocery store, 165 residential units totaling 272,242 square feet, 744 parking spaces, about 45,000 square feet of public space called “Frog Alley” and up to 30 workforce housing units, the latter of which includes 18 affordable housing units being built on an adjacent site.

Rendering of AltaWest

The Delray Beach Community Redevelopment Agency released its request for proposals in August with an early October deadline. Bidders included Kayne Anderson Real Estate and Uptown Delray, led by controversial developer Harold “Sonny” Van Arnem.

The city has been trying to redevelop the area for about two decades. In its RFP, the CRA cited challenges in the area, including a “severe lack of affordable housing,” scattered vacant lots, and a lack of tourist attractions and jobs.

A portion of the office component will have smaller spaces at more affordable rents for local businesses, BH3’s Lebensohn said.

BH3, which developed Privé at Island Estates in Aventura, recently closed on the site of FATCity in downtown Fort Lauderdale for $23.1 million, a property that’s entitled for 1.35 million square feet of development.


Related Articles

arrow_forward_ios
Laurent Morali and Charles Kushner (iStock)

Kushner buying sites near Delray Beach, Lake Worth for industrial and mixed-use projects

Kushner buying sites near Delray Beach, Lake Worth for industrial and mixed-use projects
Rendering of The Linton and Craig Menin

Menin Development wins initial approval for redevelopment of Delray Beach shopping center

Menin Development wins initial approval for redevelopment of Delray Beach shopping center
Dayna Martz & 995 South Ocean Boulevard (Google Maps)

Daughter of late Walmart CEO buys his waterfront Delray Beach home for $8M

Daughter of late Walmart CEO buys his waterfront Delray Beach home for $8M
Max Weinberg drumming & 1041 Seaspray Avenue, Delray Beach (Getty, Corcoran)

Springsteen drummer Max Weinberg sells Delray Beach home for $5M

Springsteen drummer Max Weinberg sells Delray Beach home for $5M
Mixed-use Delray Beach development on former Office Depot HQ site advances

Mixed-use Delray Beach development on former Office Depot HQ site advances

Mixed-use Delray Beach development on former Office Depot HQ site advances
Kevin Neal, Trinsic Residential’s managing director for South Florida, and a rendering of the project

Trinsic set to build 292-unit apartment complex in Delray Beach

Trinsic set to build 292-unit apartment complex in Delray Beach
Stuart Miller & Mike Nunziata, with a rendering of Avalon Trials (Credit: Lennar Homes)

Lennar spends $28M for lots on former golf course in Delray Beach

Lennar spends $28M for lots on former golf course in Delray Beach
16021 Quiet Vista Circle, Delray Beach (Realtor)

Estate of late developer sells mansion near Delray Beach for discounted $6M

Estate of late developer sells mansion near Delray Beach for discounted $6M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...