David Edelstein’s TriStar Capital, Related Group, Alex Karakhanian’s Lndmrk Development and Tricera Capital paid $26.5 million for a development site where they plan to build a residential project.
Chinese firm Seven Valleys, led by real estate moguls Zhang Xin and Pan Shiyi, sold the nearly 1.3-acre property anchored at 2700 Northwest Second Avenue in Miami’s Wynwood neighborhood. Seven Valleys had been the lender for the property, which previously belonged to RedSky Capital and JZ Capital Partners, whose planned developments never came to fruition.
TriStar and its partners plan to build “well over” 300 residential units on the site, Edelstein told The Real Deal. They could break ground in about 10 months, he said. The venture secured a roughly $20 million loan from Comerica Bank.
Edelstein said the market for new development in Wynwood is “on fire” and that there is very little undeveloped land left.
The development site sold at a loss compared to its $31 million sale to RedSky and JZ in 2016. The previous owner, Wynwood pioneer Goldman Properties, had planned a mixed-use development with 72 residences, 68 hotel rooms, about 11,000 square feet of ground floor retail and 47,000 square feet of offices.
In Wynwood, Related, Karakhanian and Tricera are partnering to develop another project, called the Dorsey Wynwood, at 2801 Northwest Third Avenue. They broke ground earlier this year. The project will have more than 300 rental apartments, commercial space, office space and amenities.
Edelstein is also active in Wynwood. Last month, he and RAL Development closed on a site along Fifth Avenue in Wynwood where they are planning a $200 million, two tower, mixed-use Class A office development.
Edelstein, who owns the W South Beach hotel, also brought on restaurateurs Stephen Starr and Keith McNally, who plan to open New York City restaurant Pastis at 380 Northwest 26th Street in Wynwood next year.