Billionaire Teddy Sagi closed on a sprawling waterfront teardown estate on Miami Beach’s Pine Tree Drive, 11 months after going into contract, The Real Deal has learned.
Sagi bought the mansion at 4521 Pine Tree Drive for $23.8 million, sources confirmed. Nelson Gonzalez of Berkshire Hathaway HomeServices EWM Realty and Douglas Elliman agent Sheerel Toledano, the daughter of Sagi’s business partner Isaac Toledano, represented the Israeli mogul in the purchase. Saddy Delgado and Chava Feigen of One Sotheby’s International Realty had the listing.
Sagi is a billionaire with a $6.4 billion net worth, according to Forbes. He built his wealth with the gambling software firm Playtech, but has recently pivoted to focus on real estate investments. Sagi has invested more than $50 million in projects led by Toledano’s BH Group and the Pérez family’s Related Group, which includes the planned Six Fisher Island condo project. Sagi, Toledano and the Pérezes scored a $400 million construction loan for the 10-story, 50-unit project in June.
The seller of the Pine Tree Drive property is the estate of the late Albert Reichmann, patriarch of the Canadian development family that operated Olympia & York.
Olympia & York built Brookfield Place, then known as Manhattan’s World Financial Center. The company declared bankruptcy in 1992 and sold to Brookfield Properties in 2005, according to published reports. Reichmann died in 2023 at the age of 93.
Reichmann bought the Pine Tree Drive compound from Russell Galbut for $750,000 in 1991, according to property records. The 8,500-square-foot mansion was built in 1995 and has six bedrooms, seven bathrooms, one half-bathroom, a pool, dock and 158 feet of waterfront, according to the listing.
The Reichmann family listed the mansion for $29.9 million in 2023, Redfin shows. The asking price was dropped to $27.9 million later that year, and went into contract in January.
Sagi plans to tear down the existing mansion and construct a roughly 20,000-square-foot home designed by an Israeli architect, Gonzalez confirmed. Sagi is still in the planning and permitting stage, a notoriously lengthy process in Miami Beach. Gonzalez estimated that the completed mansion will be worth north of $70 million, as estate size grows in importance in the Miami Beach luxury market.
“The future of very, very expensive real estate is going to be land,” he said. “To be able to find an acre and a half of land almost anywhere in Miami Beach –– you can’t find it.”
Delgado and Feigen agreed that Miami Beach buyers want bigger properties, and prices are primed for more growth.
“The appetite for over 1 acre is huge,” Delgado said. “There’s so little inventory on or off-market.”