Related Group, partners close on $123M Fisher Island site acquisition
Related, Teddy Sagi, BH and Wanxiang America partnering on 50-unit condo development
UPDATED, Sept. 16, 1:45 p.m.: Jorge Pérez’s Related Group and its partners closed on their purchase of the last condo development site on exclusive Fisher Island in Miami Beach.
Miami-based Related, billionaire Teddy Sagi, BH Group and Chicago-based Wanxiang America RE Group paid $122.6 million for the property at 6 Fisher Island Drive, records show. The Related-led group entered into contract to buy the 6.5-acre property last year. Fisher Island developer Heinrich Von Hanau sold the site.
The developers are targeting ultra high-end buyers with their planned 50-unit luxury condo project. Prices for typical units will be about $30 million, while the penthouses will hit the market for more than $60 million, according to Related. Tara Bernerd Partners will design the interiors and Kobi Karp Architecture & Interior Design, which has been active on Fisher Island, will be the architect.
The Real Deal broke the news of the deal in December. Bloomberg reported the closing earlier Wednesday.
The developers financed the deal with an $85 million loan from Madison Realty Capital. Berkadia’s Scott Wadler arranged the joint venture equity between Wanxiang America, a limited partner, and the other partners.
Fisher Island, one of the most expensive ZIP codes in the country, reaped the benefits of the hot luxury residential market during the pandemic. That prompted von Hanau, and now Related and its partners, to move forward with the last vacant sites on the island. This year, former pro hockey player Patrick Dovigi paid $21.3 million, or a Fisher Island record of $4,811 per square foot, for a unit at Palazzo Della Luna, developed by von Hanau.
In June, von Hanau began selling homes at The Links Estates at Fisher Island, a 12-mansion development asking an average of about $33 million per house. Broker Dora Puig, who has handled sales for von Hanau’s recent developments, is listing the properties.
The 6 Fisher Island Drive development is expected to launch invitation-only sales at the end of the year, according to a press release. Units will range from three to five bedrooms, and buyers will receive membership to the Fisher Island Club, according to a separate release from the lender.
The building will also include three villas and two penthouses.
It marks the first known project that Wanxiang America RE Group is working on in the region, and one of a handful that Related, Sagi and BH Group have planned in South Florida. Last year, the trio invested in the planned mixed-use Transit Village project in West Palm Beach. Sagi is founder of the Cyprus-based gambling software developer Playtech and owns a portfolio of real estate in London through LabTech Investments.
The Fisher Island property is zoned for up to 10 stories and up to 57 units. Though it’s Related’s first and only condo development on Fisher Island, the firm, led by Chairman and CEO Pérez and his sons, President Jon Paul, and SVP Nick, also plans to develop a luxury office building on nearby Terminal Island.
Developers continue to launch sales of new luxury condos in South Florida, despite an overall slowdown in buying activity. St. Regis, Rosewood, Bentley, Ritz-Carlton and other high-end brands are working with developers on waterfront projects across the tri-county region.