Riviera Beach CRA approves deal for Marina Village apartment building
BH Group, Tezral Partners and Related Group propose 20-story project with 399 units
Riviera Beach’s community redevelopment agency is moving forward on a 99-year ground lease with a joint venture to build a 20-story multifamily project in Marina Village.
The Riviera Beach City Commission, acting as the CRA’s board, on Wednesday approved a non-binding letter of intent with BH Group, Tezral Partners and the Related Group that outlines the proposed terms of the agreement.
The partnership intends to build a “multifamily residential community” with 399 market-rate units and a garage. The vacant parcel is within a 19-acre waterfront redevelopment site, on land owned by Riviera Beach CRA, the letter states.
The tentative deal calls for an annual rent payment beginning at $70,000 that increases every year by 2 percent during the first 15 years of the ground lease. The rent payments are abated until construction is completed, which is expected in 2024, the letter states. In the 16th year, the rent payments convert to 1 percent of the multifamily project’s gross income. If the ground lease is sold, the CRA will get 0.5 percent of the sales proceeds.
The joint venture abandoned a previous request to obtain a $6 million grant from the CRA for the project, according to a memo from JLL, the city’s real estate consultant.
Related, the Miami-based condo and multifamily developer led by CEO Jorge Pérez, is also building Icon Marina Village, another market-rate apartment project with 399 units at 4444 and 4334 North Flagler Drive. In 2021, Related secured a $95 million construction loan for the planned development.
Related has also teamed up with BH Group, the Aventura-based firm headed by Isaac Toledano, billionaire Teddy Sagi and Chicago-based Wanxiang America RE Group to build a 50-unit luxury condominium on Fisher Island. In September, the partnership paid $122.5 million for the final development site in the wealthy enclave. They financed the purchase with an $85 million mortgage.
Tezral Partners is a Riviera Beach-based real estate firm whose principal is former CRA director Tony Brown.