Jeff Soffer, JDS Work $1 Billion Mercedes-Benz Miami Loan

Michael Stern’s JDS Development Group is nearing a deal to bring on Jeff Soffer’s Fontainebleau Development as a partner and secure an over $1 billion loan for the Mercedes-Benz Miami condo project, The Real Deal has learned.

The deal, which has not yet closed, will replenish the project’s capital stack and would resolve litigation with the existing lender, allowing the nearly 800-unit branded condo project to resume. Byron Trott and Michael Dell’s firm, BD&T & MSD, is one of the lenders, according to sources.

The $1.06 billion financing package includes a C-PACE (Commercial Property Assessed Clean Energy) component, which encourages the use of energy efficient and sustainable materials and design.

JDS and Fontainebleau Development declined to comment. A representative for BD&T & MSD did not immediately respond to a request for comment.

The project has been tied up in a foreclosure suit with Cottonwood Management. In May, Cottonwood sued the JDS affiliate alleging the developer failed to repay the loan by the January 2025 maturity date. The JDS affiliate countersued, accusing Cottonwood of underhandedly acquiring the note while JDS was in the market for a construction loan.

Cottonwood took over the loan in late March of this year from Maxim Credit Group, which provided an $86 million refinance in 2022.

The 791-unit, two-tower development is valued at more than $2 billion once completed, according to a court filing. The 67-story development is planned to have 130,000 square feet of amenities and hospitality space, 200,000 square feet of office, health and wellness space, a 174-key hotel, retail and parking. It will mark the first Mercedes-Benz branded condo development once completed.

The project, designed by ShOP Architects, launched sales in 2024 with unit prices starting at $500,000. Ryan Serhant’s firm, Serhant, is leading sales and marketing of the project.

In one of its court filings, the JDS affiliate stated that the foreclosure suit caused “immediate, significant and potentially irreparable damage” to the developer and the project. After the foreclosure was filed, the city of Miami notified the developer that it had defaulted under the public benefits agreement, which requires JDS to build a new fire station for the city. JDS’ approval in 2020 hinged on the developer agreeing to build an $8 million firehouse for the city, and $5 million into public benefits, including a redesign of the adjacent Southside Park.

JDS’ other South Florida development is the Dolce & Gabbana-branded condo project planned for 888 Brickell Avenue. One Sotheby’s International Realty, the brokerage firm hired to lead sales and marketing of the project, sued the JDS affiliate behind that tower, seeking more than $500,000 in allegedly unpaid commissions, expense reimbursements, marketing fees and other costs the brokerage has incurred while selling the project, according to a lawsuit in May.

Fontainebleau Development and its partner Starwood Capital Group recently secured a $104 million refinancing from BDT & MSD for an oceanfront condo project in Tequesta called 1 Homes Jupiter Island. Soffer’s completed condo projects include the luxury condo tower Turnberry Ocean Club in Sunny Isles Beach. His firm’s portfolio includes the iconic Fontainebleau Miami Beach resort, where Soffer plans a controversial water park expansion.