Château sells Hallandale retail plaza it planned to redevelop

Manuel Grosskopf’s Château Group sold a Hallandale Beach shopping plaza that the developer had planned as the site of a major mixed-use project.

Pacific Star Capital, through an affiliate, bought the 65,000-square-foot retail center at 600 East Hallandale Beach Boulevard for $58 million, according to records. The buyer took out $30 million in seller financing.

The property, constructed in 1984 on 8 acres, last traded for $24.5 million in 2007, records show. Tenants include Dolphin Dental Care, and preschool and day care Artec Academy.

Château Group, based in Aventura, had planned to develop residences, a hotel, retail and offices on the site, The Real Deal reported in 2018.

The deal comes on the heels of Château selling another of its development sites where a project failed to come to fruition. In August, Château and Sunrise-based K Group Holdings, sold their would-be 15-story condominium development site at 901 South Ocean Drive in Hollywood for $15.5 million. After the city downzoned the area in 2005, reducing the allowable building heights, Château and K Group’s affiliate sued the city, but lost in appeals court.

Château Group did not immediately respond to a request for comment.

The Hallandale Beach plaza could be redeveloped, as developers have homed in on several aging South Florida retail centers with plans for multifamily projects. In Pompano Beach, Morgan Group plans a 356-unit apartment project on the site of a former Macy’s store and parking lot at Pompano Citi Centre.

Pacific Star, based in Santa Monica, Calif., has developed and purchased $1.6 billion worth of real estate since it was founded in 2003, according to its website. Aria Mehrabi and David Walker co-founded and lead the company.

In January, Pacific Star bought the Denny’s restaurant in Miami’s Edgewater neighborhood at 3600 Biscayne Boulevard and the adjacent parking lot at 221 Northeast 36th Street for $24 million.  The 1.2-acre site’s zoning allows for a 24-story development and up to 150 units per acre, although more units could be built with a density bonus.

Pacific Star developed the Whole Foods at 12150 Biscayne Boulevard in North Miami in 2013.