Michael Swerdlow and his partners’ planned Target-anchored, mixed-use development in Overtown is moving ahead, despite ongoing litigation.
The developers, including Swerdlow Group, SJM and Alben Duffie, closed on the land for the mixed-use development at 249 Northwest Sixth Street in Miami, and scored $25 million to finance the purchase, according to a release.
Records show Block 55 Owner, an affiliate of Swerdlow, bought the land from the Southeast Overtown/Park West Community Redevelopment Agency for $10 million.
Charles Penan and Joel Zusman of Aztec Group secured the loan from Sawyer’s Lender LLC. The LLC is managed by Ezra Katz, CEO of Aztec Group, and a company tied to Fort Lauderdale-based Fuse Funding.
The project, on 3.44 acres, will now include 578 units of housing and 251,000 square feet of retail. About 85 percent of the housing will be for seniors 62 and older. The project, dubbed Sawyer’s Landing and sometimes called Block 55, was previously planned to include a mix of market-rate and affordable housing.
The group plans to break ground in the first quarter of next year, according to the release. Target and supermarket chain Aldi have signed leases.
In March, three entities tied to developer Don Peebles sued Swerdlow, his company Downtown Retail Associates, and his business partner Duffie for allegedly sabotaging a previous deal to redevelop the site where the mixed-use development will be built. The case is still listed as open.
Meanwhile, Swerdlow and his partner’s Overtown Gateway Partners are seeking $175 million in damages, including $160 million in alleged lost profits and $15 million from the previously proposed deal between Swerdlow and the Peebles partnership that fell apart. The case is still listed in Miami-Dade Circuit Court as open.
Earlier this year, Swerdlow Group, led by Michael Swerdlow, reportedly lost Terra as a partner on the project.
Other recent downtown Miami deals include the $24 million sale of a 1.15-acre parcel of land at the Miami Worldcenter development site, and $11 million for two units at Zaha Hadid’s One Thousand Museum luxury condo development.