Michael Stern’s JDS Development Group is navigating market headwinds in Miami, where the firm is focusing on a pair of ambitious Brickell skyscrapers.
After handing over control of his 1250 West Avenue project to a competitor, developer David Martin, Stern’s South Florida holdings have narrowed. Another project, the under-construction Mercedes-Benz Places, was hit with a $100 million-plus foreclosure lawsuit.
JDS was also, at one point, working on a planned condo buyout of the Casablanca condo-hotel in Miami Beach, but he does not actively have a deal in place with unit owners, sources said. The buyout revealed itself in a messy lawsuit brought by Gianluca Vacchi of GV Development Group, Stern’s partner on his projects.
Last summer, David Martin of Terra took the lead on the JDS’ condo buyout and redevelopment of 1250 West Avenue, a bayfront site in Miami Beach where the developer plans a luxury condo tower. Stern, who secured an upzoning for the property, was replaced by Martin in a consent to change control granted by the city, which was recorded earlier this year. All mentions of Stern were replaced with Martin.
The two Brickell projects are now the focus of JDS’ portfolio in South Florida.
Here’s where his projects stand:
Mercedes-Benz Places, Miami
Cottonwood Group sued to foreclose this month on the Mercedes-Benz site. Cottonwood, which recently took over as the lender from Maxim Credit Group, alleges the developer defaulted on the loan when it failed to repay the loan by the January 2025 maturity date. Cottonwood took over the debt toward the end of last month.
Sales of the 800-unit, two-tower condo project launched in 2024, with unit prices starting at $500,000. Presales are now at about $450 million, according to a source. Ryan Serhant’s firm is handling sales and marketing — the launch party made an appearance on Serhant’s Netflix show, “Owning Manhattan.”
The developer is working on closing a $750 million financing package that includes a $450 million senior loan, $100 million in mezzanine financing, a $195 C-PACE loan and $100 million in preferred equity, for a total of $750 million, the source told The Real Deal.
The Cottonwood affiliate alleges that the developer owes nearly $100 million, including a principal of $80.4 million and nearly $20 million in interest. The unpaid debt is also accruing $53,621 in interest daily after March 30.
The project, designed by SHoP Architects, is planned to include more than 130,000 square feet of amenities with restaurants, health and fitness facilities, sunrise and sunset pools and a 174-key hotel. Construction was expected to be completed next year, but that is now delayed.
Stern’s Miami-based JDS secured approval from the city of Miami to build the tower in 2020. In exchange, the developer agreed to build an $8 million firehouse for the city of Miami, and $5 million into public benefits, including a redesign of the adjacent Southside Park.
888 Brickell Miami
In the spring of 2024, JDS acquired the half-acre development site at 888 Brickell Avenue, where the firm plans a 1,049-foot supertall condo-hotel tower with 250 units. JDS paid $61.2 million for the property, which is expected to mark Dolce & Gabbana’s first branded residential building. JDS financed the deal with a $35.7 million loan from G4 Capital Partners.
That summer, One Sotheby’s International Realty took over sales and marketing from Official, the former brokerage led by recently convicted sex traffickers Oren and Tal Alexander.
The building has secured about $350 million in presales, according to a source.
888 Brickell is being designed by Studio Sofield with interiors by M2Atelier. In addition to the condo-hotel units, the tower is expected to include two lobby bars and a pool club, an indoor padel court, golf simulator, yoga and Pilates studio, a spa, theater, lounge and lap pool.
Records show a handful of liens have been filed against the property, which is not unusual during construction. The engineering firm Kimley-Horn filed a construction lien lawsuit against the developer in March over about $72,000 in allegedly unpaid work.
The developer is in the process of securing $340 million in construction financing, which would include a $310 million senior loan and a $230 million C-PACE loan, the source said.
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Lender moves to foreclose on JDS affiliate’s Mercedes-Benz Miami project