After making a name for himself on the West Coast, developer Moses Hershko has set his sights on South Florida.
Hershko, President of Moses Hershko Development (MHD), is making a splash in Miami by launching an eye-catching residential brand and accompanying fund aimed at a broad investor base. MHD has already partnered with leading Miami architect Kobi Karp to bring Hershko’s vision to life, with their first project located in the heart of South Florida. The Real Deal sat down with Hershko and Karp to discuss the innovative fund and their ambitious plans for a flagship Hershko-branded luxury property that they say will create a “living monument” of timeless design.
Disrupting the luxury resi investment world
Featuring three branded buildings, including a world-class hotel component, Hershko Group’s initial South Florida development will blend residential exclusivity with hospitality excellence in one of Miami’s premiere waterfront neighborhoods. The first building will be the first under the Hershko brand, and MHD is in talks with leading luxury brands as potential partners for the second and third towers.
To bring the plan to life, Moses Hershko has launched a fund to raise $200 million, with the flexibility to scale to $350 million. While the Hershko building will cater to the ultra-wealthy elite, the fund’s model offers investors a $100,000 minimum investment that makes entry accessible to a broad investor base.
Hershko stressed that the fund represents an institutional-scale opportunity designed to deliver returns he believes will rival or surpass traditional private equity structures. The fund offers a 70/30 equity split, with 8% compounded annual return paid at the end.
“Globally, luxury real estate investment remains dominated by closed institutional funds, with little to no access for retail investors,” says Hershko. “Our disruptive approach involves a direct-to-investor capital raise through social media, online platforms and personal networks. Global investor inclusivity means anyone seeking exposure to high-yield, luxury development can participate.”
Laser-focus on returns
The fund has a defined life of 5-10 years, with a strategic focus on achieving capital turnaround in under 5 years wherever possible. It provides an 8% preferred return, accruing annually to create consistent, compounding value, with payouts at the end of the fund’s term.
“People are looking for safe havens outside the volatility of public markets,” explains Hershko. “This fund gives them a way to participate in iconic projects that were once off-limits.”
“Unlike traditional funds that lock investors into long-term cash-flow strategies,” says Hershko,
“we focus on both short-term and long-term capital events to maximize returns.”
Key milestones include completing the capital raise within 12 to 18 months, acquiring and entitling AAA-location trophy assets, executing development through design and construction excellence, and creating liquidity through sales to institutional buyers or high-net-worth end-users.
Hershko Residences: “An oasis of innovation”
Tapping into nearly two decades of experience delivering exceptional projects and establishing relationships with clients, MHD’s proposed South Florida development represents a new direction into a category of luxury that distinguishes itself as a wellness-driven sanctuary.
Hershko calls it an “oasis of innovation” that will integrate air, water, light and acoustic design touches to enhance residents’ well-being. The project will feature a world-class spa and resort-style amenities, with elite services curated to redefine status living for a global clientele in Miami’s sleek financial hub, home to some of the city’s priciest real estate.
To bring Hershko’s vision to life, Moses Hershko Group turned to award-winning South Florida architect Kobi Karp. Karp, whose designs include the transformation of the Four Seasons Hotel at The Surf Club in Surfside, the Palazzo Del Sol and Palazzo Della Luna in Fisher Island, and the Four Seasons Hotel and Residences in Fort Lauderdale, told us how the city has changed over the course of his career.
“Since I came here in 1988, the market has continuously evolved, and some say revolutionized, around design,” says Karp. “Today, it’s about sustainability, resiliency, preservation and restoration.”
His concept for the Hershko branded project builds on his experience designing residences for some of the most demanding clients in the world. His buildings have to communicate a lifetime of possibility during a tour that might take a few minutes.
“Buyers walk into these properties and immediately see the value in the floor plans, the design, the lifestyle,” he says. “That’s what branding does: it has to tie to real, sustainable, resilient value.”
The design for Hershko’s first development is already rolling, renderings of which can be found throughout this article. The goal, Karp explained, is to “design a destination that is unique and special. Rather than taking an existing brand and fitting it into a design, we integrate our architectural vision directly into the brand, creating value that is truly one-of-a-kind.”
Hershko envisions developing branded residences across South Florida’s exclusive locations, including Miami Beach, Coconut Grove, West Palm Beach and Fort Lauderdale. Expansion plans extend nationwide to New York, Los Angeles and Aspen, and eventually internationally, creating a curated global network of branded residences.
To learn more about Moses Hershko Development’s South Florida project and the investment fund, visit the developer’s website.