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
The development site with Peter Gardner and Abbhi Capital's Sankesh Abbhi (Google Maps, Longpoint, Abbhi Capital)
Abbhi Capital, Peter Gardner pay $19M for Coconut Grove apartments dev site
Abbhi Capital, Peter Gardner pay $19M for Coconut Grove apartments dev site
Electra America managing partner Joe Lubeck and Southland Mall at 20505 South Dixie Highway in Cutler Bay (Google Maps, Electra America)
JV pays $100M for Southland Mall, eyes mixed-use redevelopment
JV pays $100M for Southland Mall, eyes mixed-use redevelopment
Carlos Rosso and Jackie Soffer with Rendering of One Park Tower by Turnberry at SoLé Mia (Turnberry, iStock)
Turnberry, Carlos Rosso to develop condo tower at massive SoLé Mia in North Miami
Turnberry, Carlos Rosso to develop condo tower at massive SoLé Mia in North Miami
Lease roundup: BH3’s Fabrick project in Fort Lauderdale’s Progresso Village fully leased
Lease roundup: BH3’s Fabrick project in Fort Lauderdale’s Progresso Village fully leased
Lease roundup: BH3’s Fabrick project in Fort Lauderdale’s Progresso Village fully leased
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
McDowell wants to build 201 apartments near Homestead, puts land under contract
From left: Trilogy Real Estate Group's CIO Jesse Karasik and CEO Neil Gehani in front of the property at 2201 Northeast Second Avenue (LinkedIn/Neil Gehani, LinkedIn/Jesse Karasik, Apex Capital Realty)
Chicago firm pays $31M for Opportunity Zone dev site for apartments in Edgewater
Chicago firm pays $31M for Opportunity Zone dev site for apartments in Edgewater
Jackie Soffer with 2750 Northeast 199th Street (Google Maps, Turnberry.com)
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
Jackie Soffer’s Turnberry proposes office/retail project near Aventura Mall
NRIA CEO Rey Grabato and U.S. Construction John Farina with 1901 South Ocean Boulevard (LinkedIn)
Developers complete Ocean Delray condo project with estimated $126M sellout
Developers complete Ocean Delray condo project with estimated $126M sellout
arrow_forward_ios

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

Loading...