In a significant real estate transaction, Kushner Companies, led by Charles Kushner, Nicole Kushner Meyer, and Laurent Morali, has acquired a distressed development site in Surfside, Florida, for $40 million. The site, originally owned by Shaya Boymelgreen’s Eden Surfside LLC, now paves the way for Kushner Companies to embark on a new luxury rental property project.
Here are the key details from this noteworthy transaction:
- Purchase Price: Kushner Companies secured the distressed development site for $40 million, signaling a substantial investment in the Surfside real estate market.
- Parties Involved: The deal involved Kushner Companies working closely with both the seller, Shaya Boymelgreen, and the lender, Fuse Group, to assume the existing debt and acquire the property.
- Development Plans: Kushner Companies’ vision for the site involves the creation of a luxury rental property. Zoned for approximately 100 units with a maximum building height of three stories, this development holds significant promise for the Surfside community.
- Broker Involvement: New York broker Moshe Majeski played a pivotal role in facilitating this transaction, bringing the opportunity to Kushner Companies. This venture marks Kushner Companies’ first new development project in Surfside.
- Other Developments in Surfside: The Surfside real estate landscape is evolving, with notable projects such as a proposed luxury condo building by Damac Properties and another luxury condo development by Multiplan Real Estate Asset Management, both contributing to the area’s growth.
- Site History: Shaya Boymelgreen originally assembled the Surfside site between 2013 and 2015, initially planning luxury townhouses. However, the project evolved into a three-story, 200-key hotel, which was never realized. Last year, Boymelgreen secured a $30 million loan for the hotel project, which has now changed hands to Kushner Companies.
- Loan Details: The loan for the former hotel project was provided by Eyal Peretz’s Fuse Group. While Peretz emphasized that the deal was not distressed, certain matters needed to be addressed, and the loan matured about a month and a half ago.
- Kushner’s Other Projects: Kushner Companies maintains a robust presence in South Florida, with various large-scale projects in progress, including a recent $91 million refinancing of Wynwood properties. They are actively engaged in projects across Wynwood, Miami Gardens, and Edgewater.
- Shaya Boymelgreen: Boymelgreen has a storied history in New York City real estate and was once partnered with diamond billionaire Lev Leviev. Facing legal challenges during the Great Recession, he was banned by the New York Attorney General in 2016 from the offer and sale of securities, including condos. In South Florida, his family is planning an eight-story, 50-unit luxury condo development called 42 Pine.
This transaction underscores the dynamic real estate landscape in Surfside, Florida, and adds to Kushner Companies’ expanding portfolio in the region. The acquisition of the distressed development site holds promise for the future of luxury living in Surfside.