In a major milestone more than a decade in the making, three of South Florida’s most prominent real estate developers — Related Group, Dezer Development, and BH Group — have closed on the final units of the aging Miami Beach Club condominium in Sunny Isles Beach, setting the stage for a new branded luxury tower.
The trio paid $131.8 million for the remaining 100 units in the 108-unit complex at 19051 Collins Avenue. Related Group, led by the Pérez family, already owned eight units in the property. Now with full control of the site, the developers plan to replace the 1950s-era structure with a 150-unit branded condominium tower.
The new development is proposed to rise 828 feet above sea level, or 820 feet above ground, according to FAA filings submitted in May. If approved and completed, it would stand among the tallest towers in Sunny Isles Beach, directly adjacent to the Residences by Armani/Casa — another Related and Dezer collaboration.
A Strategic and Long-Contested Acquisition
Built in 1951, the Miami Beach Club is a two-story, H-shaped building that sits on a prime 2-acre oceanfront parcel just north of Armani/Casa. Despite its modest design, the property’s location has made it a prized target for redevelopment. Nearly every major developer in South Florida has expressed interest in acquiring the site over the years.
The buyout, which involved intricate negotiations and legal hurdles, was brokered by Greg Greer and Joseph Paglino. Berkadia’s Scott Wadler and Mike Basinski arranged an $87.5 million acquisition loan from J.P. Morgan to help finance the deal.
Related has long been entangled in litigation with the Miami Beach Club’s condo association. In 2018, the association — along with at least one individual unit owner — filed a lawsuit against Related and Dezer (as well as Coastal Construction), claiming the construction of the Armani/Casa tower damaged the neighboring Miami Beach Club. The lawsuit, which also accused Related of deliberately reducing the marketability of the older building through unit purchases and legal pressure, was ultimately dismissed in 2022.
New Wave of Condo Buyouts in South Florida
The successful acquisition underscores a broader trend sweeping through Miami’s waterfront real estate market. Developers are increasingly targeting older, oceanfront condo buildings that are nearing or exceeding their life expectancy. With new safety legislation passed in the wake of the 2021 Champlain Towers South collapse in Surfside, many aging buildings face expensive repairs and increased insurance costs, making buyouts and redevelopment more appealing.
Sunny Isles Beach has become a hotspot for luxury high-rises, and developers like Related, Dezer, and BH Group have deep experience in navigating complex condo terminations. The team previously partnered on the now-iconic Residences by Armani/Casa, a 60-story tower designed by César Pelli and completed in 2019.
BH Group has also remained active in the condo buyout space. Just last month, the firm teamed up with Mast Capital to acquire a majority of units at the 39-unit Bayshore Park in Coconut Grove. Meanwhile, Related is collaborating with Macklowe Properties to redevelop the Biscayne Sea Club, a waterfront co-op in North Bay Village, into a luxury residential enclave.
What’s Next for Sunny Isles?
While details of the branding and design for the new Sunny Isles tower have yet to be released, Dezer has promised it will be “spectacular.” Given the caliber of developers and the high-profile location, the project is expected to attract significant attention from domestic and international luxury buyers.
As developers increasingly set their sights on older waterfront buildings, the Sunny Isles Beach deal represents both the challenges and rewards of condo buyouts in today’s evolving South Florida real estate landscape. With the Miami Beach Club site now fully secured, the next iconic tower in Sunny Isles is officially on the horizon.