Embattled National Realty Investment Advisors scooped up a development site in Fort Lauderdale’s Flagler Village.
The Secaucus, New Jersey-based developer paid $9.3 million for 0.7 acres at 203-215 Northeast Third Street, according to sources familiar with the deal. The selling entity, led by Jeff Smith of Fort Lauderdale, had amassed the assemblage for a combined $1.2 million in two deals in 2012 and 2017, records show.
NRIA also owns the development site directly across the street. Roughly a year ago, NRIA paid $9.8 million for the 0.7 acres at 200-210 Northeast Third Street. The seller of that assemblage also was an entity led by Smith.
Jaime Sturgis and Dan Ross of Native Realty represented the seller in both deals. Greg Greer of CRR of South Florida represented the buyer in both deals.
The preliminary plan is for a pair of 43-story, 388-unit “sister towers” on each of the sites, Greer said.
NRIA’s wager on booming Flagler Village comes as the firm and its CEO, Rey Grabato, are embroiled in legal woes. In October, prosecutors unsealed an indictment charging Grabato in connection to an alleged scheme to fleece $650 million from investors in an NRIA fund in a Ponzi-like ploy, according to court documents. The criminal charges came at about the same time the Securities and Exchange Commission filed a complaint against Grabato, NRIA and three other company executives, also alleging a Ponzi-like scheme. This month, a judge granted a stay in the civil SEC case, while the federal case continues.
An attorney for NRIA in the SEC case declined comment. Grabato and his attorney in the criminal case didn’t immediately respond to a request for comment.
Grabato reportedly has stepped down as NRIA’s CEO, though his LinkedIn still lists him as leading the firm. He reportedly remains at large.
In June, NRIA filed for Chapter 11 bankruptcy reorganization.
Founded in 2006, NRIA had $1.3 billion of assets under management as of 2020 in Florida, New York, New Jersey and Philadelphia, Grabato’s LinkedIn shows.
Its other South Florida projects include the 19-unit Ocean Delray condominium at 1901 South Ocean Boulevard. Last year, NRIA and its partner on the project, U.S. Construction, completed the building, which had a sellout of roughly $126 million.
Grabato has had a presence in South Florida since at least 2017, when an affiliated entity paid $6.5 million for an oceanfront teardown in Delray Beach. Grabato sold the new spec home he built on the site, at 707 North Ocean Boulevard, for $16 million in 2020.
Flagler Village has caught the eyes of developers, whose plans promise to transform the district into a booming residential and commercial hub.
Last year, Aimco assembled a 9-acre development site in three deals totaling $100 million. The property allows for up to 1,500 units, more than 300 hotel keys, and over 100,000 square feet of retail for a combined 3 million square feet, according to an August filing by Aimco to the SEC. Aimco plans to develop the project through joint venture financing.
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