Two Roads closes on $150M bulk condo purchase in Edgewater, plans three towers

Deal breaks down to roughly $785K per unit in 1960s-era building

Miami /
May.May 24, 2022 03:30 PM
A rendering of the planned project with the Two Roads principals Reid Boren, Taylor Collins and partner Jim Harpel (Two Roads Dev)

A rendering of the planned project with the Two Roads principals Reid Boren, Taylor Collins and partner Jim Harpel (Two Roads Dev)

UPDATED, May 25, 3:05 p.m.: Two Roads Development closed on a $150 million bulk condo purchase in Miami’s Edgewater, where it plans to develop a multi-tower luxury project.

Two Roads, a West Palm Beach and Miami-based developer, gains a 3.5-acre waterfront site with the purchase of Biscayne 21, a 1960s-era condo. The deal is part of a growing trend of developers targeting older properties on South Florida’s waterfront in the wake of the deadly Surfside condo collapse.

The redevelopment of Biscayne 21, a 191-unit condo building at 2121 North Bayshore Drive, will mark the third condo project for Two Roads in Edgewater, following Biscayne Beach and Elysee. Bernardo Fort-Brescia of Arquitectonica will design the latest development, which will include branded residences and “ultra-luxe” condos, according to a press release.

Two Roads secured $150 million in financing, which breaks down to a $45 million mezzanine loan from Lionheart Strategic Management LLC, the asset management affiliate of Fisher Brothers, and a $105 million senior mortgage from Bank OZK. The developer will use the financing to prepare for the planned development, according to a press release.

The Real Deal first reported the news that Two Roads was in contract to purchase the property. Two Roads plans to build three towers of up to 649 feet tall — about 60 stories — with up to 750 units, Taylor Collins, a managing partner, previously said.

An Avison Young team led by John Crotty and Michael Fay represented the sellers, 176 unit owners. The unit owners banded together more than two years ago, hiring Avison Young to list their property to a bulk buyer.

In the release, Crotty said that the collective bargaining allowed the brokerage “to negotiate for a multiple of more than three times what the sellers would have sold their individual units for on a one-off basis.”

Joe Hernandez of Weiss Serota Helfman Cole & Bierman represented the unit owners.

Other buildings in South Florida have also joined together to market themselves to developers who will typically pay above market value for the units, especially along the water. In some parts of Miami-Dade, the only developable waterfront land left is home to older buildings that require expensive upkeep and maintenance.

Earlier this year, the Related Group and 13th Floor Investments offered $500 million to buy out the owners of Castle Beach Club, a roughly 18-story, 570-unit oceanfront condominium at 5445 Collins Avenue in Miami Beach.

Mast Capital and Starwood Capital Group recently began sales of The Perigon, a luxury condo planned for the oceanfront Miami Beach site of an older building that Mast bought out last year. That building, at 5333 Collins Avenue, was declared unsafe by the city last summer.





    Related Articles

    arrow_forward_ios
    From left: Oak Row Equities' David Weitz and Erik Rutter with Edgewater
    Oak Row Equities plans 400-unit apartment, office tower in Edgewater
    Oak Row Equities plans 400-unit apartment, office tower in Edgewater
    Damac Properties' Hussain Sajwani and the Surfside condo collapse site (Damac Properties, Getty Images, iStock)
    Year since deadly collapse marked by condo reforms, new development in Surfside
    Year since deadly collapse marked by condo reforms, new development in Surfside
    Mayor Shlomo Danzinger and a rendering of Fort Partners’ Hillcrest by the Sea (Facebook, iStock, rendering by O' Donnell Dannwolf & Partners Architects)
    Town of Surfside sued after approving project next to aging condo building
    Town of Surfside sued after approving project next to aging condo building
    Edgewater Tower (iStock)
    Miami board rejects Aimco’s proposal for waterfront Edgewater tower
    Miami board rejects Aimco’s proposal for waterfront Edgewater tower
    409 Southeast Eighth Street in Fort Lauderdale with Related Group CEO Jorge Pérez and President Jon Paul Pérez and Henry Pino, principal at Alta Development (Google Maps, Alta Development)
    Jorge Pérez’s Related, Henry Pino pay $15.5M for Fort Lauderdale dev site
    Jorge Pérez’s Related, Henry Pino pay $15.5M for Fort Lauderdale dev site
    The tower at 2150 North Bayshore Drive in Miami with Air Communities CEO Terry Considine and Mill Creek Residential CEO William MacDonald (Mill Creek Residential, Air Communities, iStock)
    Aimco’s spinoff Air Communities pays $211M for bayfront Edgewater rental tower
    Aimco’s spinoff Air Communities pays $211M for bayfront Edgewater rental tower
    Aimco's Wes Powell  and 901-927 North Federal Highway (LoopNet, Aimco)
    Aimco drops $64M for mixed-use dev site in Fort Lauderdale’s Flagler Village
    Aimco drops $64M for mixed-use dev site in Fort Lauderdale’s Flagler Village
    The lot where the Champlain Towers South once stood with Terra's David Martin, John Moriarty & Associates president John Moriarty, Davide Bizzi of Bizzi & Partners (Terra, Moriarty & Associates, Getty, RisMedia)
    $1B Surfside settlement signals condo association, construction insurance premium hikes
    $1B Surfside settlement signals condo association, construction insurance premium hikes
    arrow_forward_ios

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

    Loading...